Hello all
I am close to looking at my first property to buy as i am new to property investing. I have been doing my research and read some great books, so I have a fair idea of what to look for and whats a good deal. However, I have no idea how much a bank (or other lender) will let me borrow. I have been in my job for over a year earning $40,000 gross pa, I have no outstanding debts and I have only ever taken one loan worth $5000 when I was 17,which I paid off early. The problem is, I am only 19 years old. Does anybody have any idea how much I will be able to borrow? And will my age be a serious problem?
I am looking to start with a property valued at $65000, so I am fairly confident with that.Chris
At $65,000 the property presumably is in regional Australia and is probably zoned residential rural or rural.
One problem will be the postcode and whether the Bank / lender you approach can mortgage insurance the loan. If they can’t you will limited to an 80% lend.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Thats alright because I have 20% anyway. Yes, its in regional NSW, in a fair sized town. Will my age be a factor though?
No not at all.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Thats great news! I was worried that id have to wait a few years. After reading Steves books I am motivated and cant wait to begin investing!
Chris,
Go for it mate, from reading what you said about your income there should be no trouble getting a loan especially if this property you’re talking about is close to positive cashflow as this will hardly affect your financial position at all. There probably won’t be much capiital gain in the next say five years but if hold onto it long enough you’ll definately get some.
Some reasons I think it will be a good move is;
1. you are young so have time on side
2. you are not outlaying a huge amount of money so if you realise you have made a mistake you would recover quite easily
3. you will learn so much from this first purchase that when you want to do your second you’ll already have a lot of experience
4. in twenty years time it will roughly be worth $260,000, you’ll be just 39 and hopefully still have it with say 5 more residentials, a few commercial, shares for more passive income and a couple of cash flow businesses.Make sure you do your due diligence and you’ll be right.
Cheers,
Woodinator
I applied for a pre-approval today at Wizard, and the man there seemed quite confident in getting me the loan I am after…I guess I will have to wait until Wednesday to find out!
Just watch Wizard the product is quiet what it seems and the establishment costs are high.
If you are looking to build up a portfolio of IP's then you need to think carefull about financing from day 1.
From my recollection they have a min loan of $50K on most products so this may limit you if you are looking at buying in regional areas. Ask them do the X collaralise their loans and look at the face of the Wizard rep when he wonders what you are talking about.
Richard Taylor | Australia's leading private lender
Well I have been approved for the $100000 I applied for so Im quite happy about that! Age wasnt a factor. Thanks for your advice guys
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