Hi Everyone,
I recently joined the forum and I'm really impressed by the level of good honest advice and team spirit here, reading a few posts it's great to see so many people taking action and reaping the rewards,My position; i'm 31, i'm half way through 0-130 properties, i think i'm hooked! i have $8000 saved and am able to save at a rate of ~1000 per fortnight
I'm currently renting. my thoughts re investments are that positively geared sounds like the most promising, if the ultimate goal is to supplement or generate an income in later years, why not get that happening now and grow it 'real time'?
i am considering my first move, so far i like the idea of buying, renovating (cosmetics & basics) and renting, justifying that the Reno will hopefully add enough value to the property to justify a higher yeild, and could help access extra equity for more deposits.
Realistically how much cash will i need for this? i have a figure of $35k for the deposit and closing fees in mind, and $20k for a reno, $50-55k is a lot of money, i'll be saving for a while! is there a better strategy? maybe 20K is too much for a reno?
is it heard of to borrow more money in order to renovate? does that even make sense?!I also have a student loan of $14000 from the UK which i'm paying off, i have been advised to keep paying off the recommended minimum as i will save more faster, my question is will this loan affect my chances of getting a loan down the line?
I have a bit of time to go before any IP's get going so i want to learn as much as possible, while trying to fast track my savings!
Kind regards,
TimHi Tim
Firstly welcome to the forum and hope you enjoy your time with us.
Must admit i am glad i left Uni in the UK before they bought in the student loans.
The required monthly or annual payment on the HECS based loan will be considered a committment and therefore will reduce your serviceability but can be counter balanced with your Australian income here.
Depending on what you are looking at buying you going to need circa 12-15% deposit to cover your 5% actual deposit mortgage insurance and acqusition costs.
Keep on saving as regularly as you can as you are going to need to show the 5% saved over a minimum period of 3 months and then the rest will be down to your Credit score and LMI assessment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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