OK so I'm new to this website and I'm very happy I found it.
I really want to start investing in property but before I sit down with a broker for a loan I want an opinion on my chances of finance.
I just want to find a property, Positive geared if possible otherwise for a reno, maybe a flip for capital gain to begin with.
I've got 30K in personal debt
No existing properties, I rent.
have about 10K worth of shares
Income about $650 p/week after taxDo I even stand a chance?
Has anyone been in a similar position and been able to get finance?Your personal debts will certainly go against your serviceability however in saying this there are a few lenders out there offering 100% and more in the way of LVR.
I assume the property you are looking at buying would be an investment property.
Acquisition costs could be your biggest hurdle as stamp duty, legals, Bank application fees and LMI or the equivalent will add up.
Also at that level of LVR bear in mind you are likely to incur some form of deferred establishment fee or early repayment penalty if you pay the loan within the first 3 – 4 years.
Richard Taylor | Australia's leading private lender
Thanks for your response.
Well you didn't just give me a flat out NO CHANCE! lol … thats a start
Yes, the property is intended to be an investment property.
I was thinking, would it be a better idea if I partner up with somebody? To gain access to another income or even equity in an existing property to use as a deposit. Servicing the mortgage would be split in 2 as well as the cost, fees etc. and of course any profits realized either through cap gains or cash flow?
Otherwise I'm goin gto have to be patient and pay off my debt before I get started… how boring!
cheers
AdoubleU wrote:Thanks for your response.Well you didn't just give me a flat out NO CHANCE! lol … thats a start
Yes, the property is intended to be an investment property.
I was thinking, would it be a better idea if I partner up with somebody? To gain access to another income or even equity in an existing property to use as a deposit. Servicing the mortgage would be split in 2 as well as the cost, fees etc. and of course any profits realized either through cap gains or cash flow?
Otherwise I'm goin gto have to be patient and pay off my debt before I get started… how boring!
cheers
Being patient, paying off personal debt IS boring I agree.
That's why most of the western world never do it and never get rich.
I think you will be in with more than a chance! (Did I mention welcome to the forum?) My 13c worth would be to offer the following points……remember 1) You don't have to buy a $300k plus property (there are reasonabel properties less than $180k in 'non mining' areas still worth buying – check out most of rural vic, some parts of SA, and there is still a bit left in Tassie) and 2) For investment property, the rental counts as income on your loan assessment, making it more 'agreeable' from a lenders point of view.
Now……..have a look at some property, and don't be afreaid to think outside the herd mentality. All the bestV8ghia,
thanks for the advice… and cheers for the welcome, I'm learning so much here its great! I've been looking around rural WA but the rent scene seems to be almost non existent (or maybe just not listed online) unless its a mining town and yeah, not payin 800K for a 3 bed weather board shoe box… and most of WA is a ming town these days! lolDo you have experience with rural Vic? I'll do some research tomorrow first thing.
Thanks again
Not personally AdoubleU, although am / have done a bit of research. WIll buy a cheapy there soon however. Many are sceptical of regional areas, and true, you have to be sure that the place is not dying. That said, anywhere with a reasonable population, schools, and shops that has a bit of industry and is not too far off the beaten track that has property under $200k would be hard to go too wrong with long term you would think. The west/central/mallee areas are pretty limited, atlhough some people I know from the area I have been talking too feel Ararat and Stawellhave long term potential. Horsham seems to be OK. East of Melbourne you could look at Sale, Bairnsdale (save $$$ on washing your car every time it floods….heh heh) and closer Traralgon and also Moe on the low end of the price scale are worth looking into perhaps. All these arreas have shad some growth over the last couple of years – not setting the world on fire, but not a huge outlay VS rental return. I know there are a few on the forum that are happy with these areas – others would run a mile…….
RPdata 'free' suburb reports are a great place to get a basic idea of what is what when you are over in WAAll the best with your investing journey..
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