Hi All!
Let’s say I was quitting my full time job to work part time to free up some time to pursue investing.
My question is, What do you think would be the minimum income you could get away with so you could still manage to obtain finance easily enough??
I know it’s a very general question, and it all depends where you invest, but I’m considering it so please let us know what you think.
Cheers!
Daniel
Hey Daniel,
Good on you for going for it!
I have only worked part time since age 22.It is great to be free to do property deals and just enjoy life,without rushing every day.
Everyones case is different as to how much income you need to go part time. In my case I have lived off around $500 odd dollars a week. I obviuosly dont have any dependents to pay for either so this makes it easier than say a married person with a family.
I also chose not to own my own PPOR and always find places that are reasonable rent.What are your circumstances and we can prob help you more specifically.(eg what are you aiming for in property investing .Do you have debts or dependents?)
Dematio
We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Sorry Danny I misread yr post slightly.
It depends how much equity you have and saving history and positive cashflow coming in from yr portfolio.
Some brokers will do no docs loans at a much higher interest rate even if you have very little income.But these will cost you.
Dematio
We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Dannyboy, I’m thinking along very similar tracks to you at the moment and what I have come up with is the following steps.
1) Work out how you want to invest, you should be aiming for positive cashflow so this can build and gradually replace the fact you are working less hours.
2) Set up a Trust so you can have more borrowing power.
3) Work out how how much you want to spend per deal. A calculator can be found on http://www.realestate.com.au which can give you an indication of how much a bank will lend you on what income.Hopefully this will put you in a position to find the right balance of income to finance your deals and the time to find the deals as well.
GoodluckSet up a Trust so you can have more borrowing power.How much more borrrowing power???
Depends on how many deposits you can afford. Borrowing money in a Trust with a company as Trustee will see that your loans are in the company name (a seperate legal entity) and you would be the gaurantour for the loans. This way when you get a second loan from a different lender you are not limited by already having debt in YOUR Name. It is under the company so therefore it leaves you with more options. Do a search on the topic and consider buying Wealth Guardian as great introductions to structuring
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