Getting finance for your first IP/property on apprentice wages D:

Viewing 5 posts - 1 through 5 (of 5 total)

lachlan.charteris
Participant
@lachlan.charteris
Join Date: 2012
Post Count: 3
March 4, 2012 - 12:58 pm
Hey Everyone !
as you will most likely figure out , i am a young lad with a huge lack of knowledge, but im learning (:
What my question is ;
Whats the best way to get the banks/private lenders to even look at me to get a loan to construct my first property.
My Situation;
I am turning 18 in a week , and in order to get the best start in investing/developing i would love to hear you opinion.
I am an apprentice carpenter , i only earn around $400 a week , and have 20k in savings, no debt either .
I am wanting to purchase a block of land in a already established area of my home town(Townsville,QLD) and build a pair of townhouses to start my +ve cashflow portfolio (sounds good in theory) . On my wage i could probably get a loan to purchase the land , and if i ask my parents reallllllllyy nicely i could maybe get them to borrow from banks for the contrustion (they are behind me 100% ) i am most likely coming across as extremly nieve, but i would love to get some feedback on where i can start. . . .
Regards,
Lachlan
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
March 4, 2012 - 1:04 pm
Your wage is not high enough to consider a land + build loan….land and build loan require a lot more deposit + slightly better serviceability for the lender to be “comfortable”.
Also are you planning on doing ” owners builders”ie you contract the build job out your self? if so that requires a 20% deposit …
If anything on your current wage + given your a apprentice only, you could only look at existing properties and buying it as an investment so it has the extra rental income + consider using your parent’s place as a guarantor as your deposit may not be enough- how much you can afford – don’t know need more data.
Take it one step at a time….Construction loan is a totally diff ball game…
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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lachlan.charteris
Participant
@lachlan.charteris
Join Date: 2012
Post Count: 3
March 5, 2012 - 2:41 am
Thanks alot for your reply Michael (:
If i were to build my own home, my boss's company would " build" it and I would be doing majority of the work, so basically just building it under his abn.
But what your saying probaly makes more scense for my situation ( buying an existing home as an investment)
Is there any websites/books you could reccomend so i could do a bit more research on borrowing for the first time and ect,
i really appreciate your advice, thankyou champ ! (:
Regards
Lachlan
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
March 5, 2012 - 2:59 am
Hi Lachlan
I hate to say the secrets of a lenders credit policy changes in some cases daily so you find anything written in a book relevant or
upto date.
Believe it or not constructing 2 properties on the 1 Title will not be acceptable a fair few lenders.
Also bear in mind that you wont receive the FHOG or the Qld Stamp Duty Concession so investment stamp duty needs to be added to your numbers. On a $300K land / house purchase Stamp Duty and registration will amount to nearly $9K.
I would suggest you start small, buy something which you can occupy as your own for the qualifying period and receive the FHOG and Stamp Duty concession and then look to move on from there. Building equity as you go will put you in good stead for the future.
A good mortgage broker can run the numbers for you and look at all lending options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
lachlan.charteris
Participant
@lachlan.charteris
Join Date: 2012
Post Count: 3
March 5, 2012 - 9:54 am
Thanks alot richard (:
i think what you suggested is the best option, and it would almost be silly not to take advantage of FHOG,
Thanks for your reply , i really appreciate it (:
Regards,
Lachlan