hi there, i am keen to start out finding pcflow property, there is just 1 quuestion i have. deposits… how do i go about aquiring propertys with little or no deposit down, i currently have 1 property (n gearing) and my first goal is to purchase p flow property to be able to pay the house off.
cheers!!
crawfyHi,
If you are in a strong financial position or it’s a really good deal eg. Price $100k, Rent $250pw you can often buy with no cash down. There are other factors, talk to one of the brokers, they’d be better to help.There are some ways to buy without a deposit.
1) 100% finance. this is hard to qualify for and is often only for owner occupiers.
2) use equity in existing property
3) stack the contract and lie to the bank.
4) go for 95% loans with LMI capitalised to minimise cash outlay.
It generally doesn’t matter how good your deal is, or how good the rental yield is, you will usually require one of the above methods.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
3) stack the contract and lie to the bank
[confused2] and how does one do this?
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database
Stacking the contract refers to the practice where the price is inflated but the vendor only accepts the original offer. This excess then becomes your equity.
It is illegal and not only would I not recommend it, I will not be involved as a broker. I would be surprised if any reputable broker would.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You could also ask the vendor to leave the deposit in the deal as a second mortgage (called vendor finance). Make sure your lender is okay with this first though.
Keep smiling
Felicity
[biggrin]
Have you read any of Steve’s books it goes over lots of different ways to aquire property with little or no money.He also goes on to talk about property that doesn’t perform from day one (re your negative geared property). Might need to go over figures again see if it is worth keeping and use equity to purchase other properties or cash up to then only buy +cf properties.
Good luck
Jenny
Jenny Jordan
I can help you buy a property with little or no money down. My company specialises in this and WRAPs.
email me: [email protected]
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