Hi people,
Just a little about myself, I basically have 20K in my hands for property investing. My personal cashflow is basically, breaking even with my expense. Basically this was intially a part-time business but now it’s covering my daily expenses so I quitted my job and doing that business full-time as well as moving into Real Estate. I hate working for someone!
One thing I’m not sure is what are the banks looking for when they are planning to provide a loan? Btw, I’m a real newbie in Real Estate, but I can see in 2-3years time I’ll be a millionaire in this arena [thumbsupanim]. hahaha..
I also have the ‘Buyer Beware’ set with me. It’s good. But what I don’t understand is, when you look at properties, how do you get so much details (as the examples) in the first place?? e.g. for Rent, I just look at the rent of other hourses? Need some guidance thanks.
Oh btw, I went to the Sydney Masterclass. Totally inspired. And I know I can succeed in this arena.
The main problem I am encountering right now is:
1. Don’t know where to get all the REAL details for a REAL property to put on the templates (well, the first template).
2. Not sure what the banks are going to say with my situation as they will only look at my current income.Regards,
zeallous
Different information is obtained from different sources. It depends on what information you are seeking to determine where you go to get it. The best information costs money but there are always cheap or free alternatives if you know your way around. Maybe if you provide a list of what information you need, you might get some very good responses.
As for lenders and what they look for, of great importance is funds position and serviceability. You seem to have some funds available to settle on a property but you stated that your income and expenses match. This means you have no room to move if your expenses increase and your income stays the same. This can easily be the case if you buy an investment property and your tenant vacates. You will see yourself quickly in trouble.
I think the best thing to do would be to sit down with a mortgage adviser to see if anything is doable or meet with a financial planner to organise your finances so your income increases and your expenses decrease.
Check out the link to investor links below as it has some great websites for obtaining information. I hope it helps and let me know if you need more mortgage information.
Robert Bou-Hamdan
Mortgage AdviserZeallous
It’s great that you’re so driven to start building your property empire. Well done! However may I be blunt;
– you mention that your cashflow is break-even and that you hate working for someone else. bad attitude. Without a regular income from a job working for `someone else’ the banks won’t touch you with a 10ft barge pole. And given that you’re `cashflow is…break even’ do you hardly think you’re in a position to even consider property investing??? $20K in the greater scheme of things is hardly going to get you a lot out there today either
– what are banks looking for? SEE ABOVE,
– the net has an abundance of (mostly) free info that you can ascertain things like council rates for different areas and even rents. and if you can’t find something, pick up the phone! call the agent.As Robert mentioned above, to satisfy yourself of whats being said here, my strongest advice to you would be to seek professional assistance. A mortgage broker (most will come to see you in the comfort of your home FREE) will tell you in no uncertain terms if you meet lending criteria.
For the moment Zeallous, I’d be putting that $20K in at-call cash account or if you want a better return in a managed fund of some description.
Good luck,
Eric
Head to your local casino and put it all on black and double your money strait away… Ha Ha Ha
But seriously, just scope your local area and try for a Cash Flor Positive IP, get your most out of the money.
If you look hard enough out of the city, Cash Flow Positives homes still exist, espicially in commercial.
Cheers
If you are breaking even with income, you will not qualify for a loan to buy a cash flow positive IP regardless of how cash flow positive it is. What happens if the tenant moves out?
I would considering using the 20k to reduce my expenses.
Seek professional help. It is not as easy as people lead you to believe in this forum.
Robert Bou-Hamdan
Mortgage Adviserzeallous,
If you have purchased some resources, you’re on your way, but if you want specific info, ask the questions, and someone can give you an opinion
Re rents… I think it is best to check out, for example, realestate.com.au and go to the rental section and then the map and then the location. A comparison of rents similar to your prospective property is probably the most accurate estimate you can find, as they are real properties needing tenants. Asking the RE agent what the prospective rental will be, might give you a wildly different (over)estimate than what you can actually get.
As to your income, I am not sure how much you can be saving if your income = your expenditures.. but we all start somewhere, and your deposit can probably still afford you a small town property somewhere, but you’ll be in trouble if you have no extra $$ for expenses.
As others have suggested, you’d be better off with a job.
kay henry
You must be logged in to reply to this topic. If you don't have an account, you can register here.
