Hi all,
I’ve just started looking into this property investment thing and reading heaps.
I have almost 20K in savings and I’m currently renting. I did own a house but due to a relationship breakup I don’t have it anymore nor did I get any money out of it, hence not eligible for FHOG etc.
I earn 80k a year but my question is … should I just keep reading and learning and saving? or is there a way I can start investing with only 20k? I’m not even sure if this is a realistic question!!!
My aim is to build a portfolio to hold for the long term that isn’t too arduous to fund throughout the year. So far I’m thinking smaller properties 150 – 250,000 in order to diversify.
Any help would be greatly appreciated.
Hi
As a general guide you could borrow roughly 5 times your annual income (gross). If you live at home and wish to buy an investment you could probably get a bit more due to the rental income being included. you will generally need about 5% deposit and another 5% for other costs. If you have a good employment history you may be able to borrow 100% too.
you should also factor in some buffer money, ie keep some spare cash just in case.
With $20k, you may wish to look at the sharemarket. Some think we are close to the bottom.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
no point in looking at sharemarket unless you no what your doing or you study it for quite a while. you mite want to go to a good mortgage broker and see what you can actually borrow the economy at the mo has made banks tighten up and a bank prob wont look at 95 and 100% loans way to much risk for them but it would depend on your own circumstances. let us no what you do
There is absolutely no reason why with a stable employment background and good credit history you wouldnt be able to borrow 95% LVR on your first IP.
If you are targetting the $150-$200K price range then depending on the Stamp Duty in the particular State you are looking at you should be able to start looking now with the deposit that you have.
Richard Taylor | Australia's leading private lender
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