Hi guys thanks for the help with my previous questions really helped.
I have finally bought my first property with the help of the FHBG due to settle this month and currently rented. I did initially have the intention to move in straight away in order to hold on the CGT exemption but have now decided i won't worry bout that. I will look at moving in at a later date but within the 12 months required for FHBG.
I know i might be jumping the gun at this stage and the first property hasn't even settled as yet but I am SOOOOO keen to buy another. I need to gear my self up into the position to make my second purchase.. Clearly this time I will need some funds behind me I have approx $5k in savings. I am in awe of ppl that buy multiple properties in 2,3,6 months. I am wondering if someone can point me in the right direction in terms of accessing finance, I don't intend on spending more than $200k on a prop. But seeing as my servicibility for a 2nd loan will be limited due to the first loan I wonder how do ppl do iit??
Can anyone point me in the right direction??
Thanking you in advance.
Hey Tylon020,
I am in pretty well the same position as you at the moment, bought my first property about 9 months ago, moved in about 6 months ago after renting it out for the first few months. I am really keen to get into the next property around the 200k mark and have seen some good potential properties. I have approx 5k in savings as well, but know that with the right strategy i could easily take on another propery. Will be interested to see what suggestions people have…
You may want to consider buying a property off the plan (preferably with a 12+ month settlement). This should not require a significant deposit upfront and if you buy right (in an uptrending market), you may not have to put any more of your money because the bank will lend against the end value (and not the contract price because your contract is >12 months). As an example. you buy a OTP property for $200k (with 5% deposit or deposit bond). Lets say the property increases by 10% in value over the next 12 months. The bank will lend $198k (90% against $220k) and your purchase price is $200k. You need to put only $2k.
Hope this helps.Hmm, propertypower, that is a good idea.
As i would like to buy my first IP(in sydney aswell) around end 2009 – start2010 and i am worrying about size of depoist, if i can get in in time to not have missed out on alot of the uptrending of the market.I could get in even earlier, like with still half a year of uni left(mid2009) and do what you suggested and won't miss out as much on the uptrend. I would have about 20K in savings then, and buying 200-250K property, so about 8-10% deposit. My income would be only(combined) 30K pa, we are both studying. Would they lend??
Also with the FHOG you have to live in for 6 months out of the 12months, could you claim it and say "oh well i'll rent it out for 6 months then i'll move in for 6 months" and then don't move in in the second 6 months, then say to the ATO, oh I broke your rules, i don't deserve this, and give them back the FHOG, could you do this(would it have any implications on future chances of getting FHOG.
As the FHOG would significantly increase my deposit and would help get me into the property initiailly, then over the next 6 months, make up that FHOG(with increased earnings) and pay it back. Like a 7K interest free loan, which isnt seen as a loan by the bank, just extra money.What does everyone think of this??
Chris.
This is an interesting thread for me as I have been recently thinking the same things.
I bought my first property 9 mths ago and it is my PPOR. It had no exterior appeal however it is a beautiful character home with good solid structure and well maintained interior, so I have been busy landscaping it and am about to add a garage and give it a repaint.
When I bought it I borrowed $220K (95%). I have had an informal appraisal based on the improvements I have made plus the garage addition, suggesting a value of around $280K so around 21% equity. With additional work I have in mind I would expect a value of $300K+ in the next 12 months.
I have discovered a real passion for landscaping/painting and the like so I want to get my place finished them buy another to do the same.
Has anyone got any starting out success stories to share to give us newbies some tips?Fantastic topic but not a lot of answers as yet???? Come on peoples, would love to know some answers to the questions being asked?
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