My idea is that you can get into property with no deposit.
Firstly you are wanting to buy a $300K house(with 10% deposit) so 30K deposit and say 10K in like all the purchasing costs.
So can you take out a 40K PL and then a 260K property loan. How would this work. Whats the pros/cons. IS it easier to get approved. Can someone please provide me with heaps of info as this idea just came to my head when i was reading the save$$ or buy thread, the reply by wealthcreator.
Hmm….Christopher.
yes you can get a personal loan for a deposit, but usually the personal loans are for a max of around $30,000 and sometimes they are harder to get than a home loan.
You also must demonstrate to the home loan lender that you can service with both loans. Don’t forget that personal loans are a higher interest rate and a shorter term, so the repayments are high = hurts serviceability.
Terryw
Discover Home Loans
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Why pay a higher rate for a P/L when you can borrow 100% + on a normal home loan and pay a sensible interest rate.
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Richard Taylor
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Gotta hand it to you DV,
You are certainly thinking alot lately. Creatively as well. Good on you.
TThank you everyone.
its funny you picked up on that, good observation. I didnt even know i was being all creative. I’m not usually but im just so into all this property stuff im loving it.100%+ on a normal home loan. Huh, dont you get LMI.
How can this happen, do you have to have really good income or something??
Yes LMI is payable but as a loan cost it is deductible if the property is an IP. If it is a PPOR then it is just a cost of ownership and you can either pay it or put more of a deposit into the purchase.
Why not try and negotiate with the Vendor to leave some of the settlement monies in the deal rather than pay the costs of a high interest rate P/L.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
So i can trya nd vendor finance, and pay the vendor the going rate on a normal mortage loan. That menas i can get my deposit and i wont be paying extra interest. Though vendor finance is hard to find(is it?).
Like anything at the moment Vendor Finance is negotiable.
If you put 20 offers in a week and 1 Vendor is keen to sell then they might accept the terms and conditions you offer.
We are finding there are more and more development opportunities arising each day as vendors suffer with overburdened debt and increasing interest rates and the number of good deals is increasing.
It is just a matter of doing your due diligence and getting the contract terms right. Price can then be negotiated afterwards.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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