Hi all,
I’m new to all this property investing and still trying to learn the ropes of how to safely invest. THe one question i have is that, i currently rent, i only pay 1/3 of the rent to my partents, but want to buy a house for us to live in. Is it better to purchase a house of my own first, considering i’ll get the first home owners grant and use that to get equity on the IP[blink] or get an investment property to start with?Thanks Heaps,
Bear.chances are you’ll get $12k of gov assistance to buy your first home – this is perfectly feasible if you have savings and income to support borrowings in your name – talk to a good broker to establish this position.
cheers
Brendan Heagney
Mortgage Broker
0438 436383If you don’t ask, the answer is no!!
Hi Bear,
Depends on your capacity to service x amount of debt,
Eg, will the repayments on a PPR loan make it difficult/impossible to qualify for an investment loan?If the answer is yes, then I would suggest an investment loan first; the return on your investment will increase serviceability on the PPR/non deductible loan/debt.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi all,
I’m new to all this property investing and still trying to learn the ropes of how to safely invest. THe one question i have is that, i currently rent, i only pay 1/3 of the rent to my partents, but want to buy a house for us to live in. Is it better to purchase a house of my own first, considering i’ll get the first home owners grant and use that to get equityClaire, have you asked your parents if they’d move in with you if you bought a house? Essentially you’d be in the same boat as now EXCEPT that you are providing a future for yourself in that you build equity and THEN buy an investment. If you choose well, the mortgage repayments could be less than their current rent, saving every-one a few bob. Down the line you can reduce or remove any rental obligations towards your parents (should you choose to); would be a good win-win situation! You get the Gov. assistance AND your first IP (well kinda!) and your parents help you get ahead with your future and pay the same or less rent. Just seems to make sense to start off using the Gov. support, otherwise you’d miss out!
In a few years you have equity and can ‘leap-frog’ onto the next property……My thoughts……[cigar]
Cheers
C@34
Claire..
i’m thinking along the same lines as Calvin..
Do your parents ‘own’ the house your all currently in?
Would they consider moving in with you…
Do you have deposit saved, good job/work history etc..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks everyone for your advice. I think i’ll be looking into purchasing a property of my own first and find out whether my parents are willing to help with the mortage. We rent at the moment, so i’m pretty sure they’ll be happy that we dont have to pay rent for someone else.
I’ll be visiting a financial planner to find out how much i can get on loan.Thanks.
Bear.Please don’t see a financial planner.
Contact a Mortgage Broker instead – and do so after asking people for a referral.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Bear,
I agree with Simon, don’t see a financial adviser first, they will only confuse you and probably talk you out of any ideas you have. I have been through 3 advisers myself and if I had listened to them I’d still be only “thinking” of buying property, not actually doing it.A mortgage broker is the best place to start, I’ve just used one that’s been fantastic as we are re-financing our current 2 IPs and buying our third. A broker who can think outside the square (within legal limits), who doesn’t know the word NO with lenders and who keeps you informed along the way is your best bet.
Goodluck,
Cheers,
LeoniNo NO NO!! not a financial planner. this is a euphomism for insurance seller if they are mobile or bank product seller if they are in a bank office. DO NOT believe these people they are only into it for the bank/insurance company. They will suuggest a loan for shares or managed funds, you then have no control as your money dwindles with crazy fees and share fluctuations.
Go to a mortgage broker for a property perspective, and try to get someone who has several of their own properties as well.
Dont be scared about property be determined. Make decisions yourself, afterall it is your money and NOT the banks. Great brokers in here are plentiful and usually 100% on the ball.
Always do your own research as well as what others tell you to get a balanced view.
Good luck, happy hunting.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
If your parents would not like to rent – perhaps you can sublet some of the rooms? This is often a good tactic and it gives you good insight into choosing people for tenants also! Will be a handy skill as you work towards your property empire.
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