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  • Profile photo of jules57jules57
    Participant
    @jules57
    Join Date: 2010
    Post Count: 11
    July 24, 2010 - 7:44 am

    Hi all,

    GF and myself are very keen to purchase our first IP. This is our current situation:

    Both working full time
    Renting

    Our plan is to first consult with an accountant and financial planner and get that side of things sorted then continue saving till we have enough for a deposit. 

    So i guess our question is. How much savings should we have before we get the ball rolling? We are looking at the 250K price range.

    Any comment/help would be greatly appreciated

    Profile photo of PC_MelbournePC_Melbourne
    Member
    @pc_melbourne
    Join Date: 2010
    Post Count: 43
    July 24, 2010 - 9:38 am

    There really isn’t enough info here, but starting numbers on a $250K property would be approx:

    – Deposit – 20% = $50,000
    – Stamp Duty – Varies by State – I’ll use Vics just for Jollies = $10,070.00 (Will also vary depending on whether you buy off plan or establshed)
    – Conveyancing Fees – $400 – $600

    Starting numbers to aim for is probably $62K for a $250K IP.

    Other Variables you should consider Post Settlement::
    – Whether the place you buy needs fixup before renting $Variable
    – Depreciation Reports = $400
    – Agent Listing Fees = $Variable to the agent. Perhaps $100-200

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674
    July 24, 2010 - 2:06 pm

    Can you service the loan is another factor that the lender is going to look into .
    I would recommend consulting also with a lender or mortgage broker to see what your service ability would be.
    There are a number of brokers on this forum that might be able to help you with this consideration.
    But you have not mentioned how much you earn a year so they might have trouble answering this service portion of lending.

    Profile photo of jules57jules57
    Participant
    @jules57
    Join Date: 2010
    Post Count: 11
    July 25, 2010 - 3:41 am

    Thanks for your help

    Combined income of $110,000

    Current savings at $15,000, both of us are first home buyers.

    Thanks

    Profile photo of joez71joez71
    Participant
    @joez71
    Join Date: 2006
    Post Count: 28
    July 25, 2010 - 7:54 am

    Maree, ok if i shoot an email as well, i'd like to checkout your spreadsheet as well?

    thanks
    Joe

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 25, 2010 - 10:55 am

    Hi Jules

    Realitically unlikely to get more than 95% lvr less LMI so on that basis you are probably going to need savings of around $18,000 just to cover the deposit and bank purchase costs. Then of course you have the property acqusition costs such as Stamp Duty, legals, transfer, searches etc etc.

    It will be dependant on the State you purchase the property in but i think you are a fair way short of deposit at the moment.

    Richard Taylor | Australia's leading private lender

    Profile photo of jules57jules57
    Participant
    @jules57
    Join Date: 2010
    Post Count: 11
    July 25, 2010 - 11:38 pm

    Thanks Richard,

    We were thinking that we are a bit short at the moment, just trying to set a savings goal and work towards that. Plus that will give us time to research and read forums like this one. I can't see it being a bad thing.

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