My Situation is I work in mining construction and am away 4 weeks to my 1 week in Perth. I earn a great income and can save 90% of it. The only thing not on my side is time to look at houses… My thoughts are seeking the help of a buyers agency and submit my requirements so they can do the hard work for me. Fees range from 6K to 10K. This will be my first property purchase.
ok and your question is….
Mick C | Shape Home Loans
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Make sure you work out a plan for what you want to buy. Do you have a strategy. Have you determined what you want to buy and where. Happy to have a chat. I have been doing this for a number of years in both Australia and the United States
Nigel Kibel | Property Know How
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Hi Nigel, my idea is to buy cash-flow positive properties with improvement potential. That way I feel once I have have enough deposit and post renovation equity of the previous place, I could borrow again and again. Would an LVR of 80% always be needed? I would ideally be doing developments but I guess I need some Market experience and strong equity to get started.
send me you details I might be at least able to give you some ideas
Nigel Kibel | Property Know How
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Andrew Stephens wrote:Hi Nigel, my idea is to buy cash-flow positive properties with improvement potential. That way I feel once I have have enough deposit and post renovation equity of the previous place, I could borrow again and again. Would an LVR of 80% always be needed? I would ideally be doing developments but I guess I need some Market experience and strong equity to get started.Hi Andrew,
Good to see you have a 'plan' and type of property in mind. This will improve the likelihood of you achieving success whichever way you end up going. Just a passing comment for you to consider – in your first post you indicate a shortage of available time for you to get your teeth into property selection and then in this post you indicate a desire to 'renovate'.
Is the renovation something you would consider doing yourself, getting a project manager, self-managing etc – All questions are relevant as 'time constraints' may impinge on your renovation plans in the future.
If you are looking at developments then you will certainly need plenty of equity – funding for developments is, as a rule of thumb, pretty hard to source for mum and dad type investors. Banks will probably require pre-sales, a strong track record, you having plenty of skin in the game and any other combination of 'hurdles' they see fit to put in your way. Obviously things do change and different lenders may have slightly different takes on some of the restrictions but ………………. food for thought for you.
You need not restrict yourself to 80% during the early stages of your investment journey – based on your rough outline in your first post I would look at 95% lend so you can get in the game a little earlier. Now I know this means paying LMI but this will mean you have to save a smaller deposit initially. Clearly there are plusses and minusses to this but a good broker can be of assistance while you investigate finance options.
Hope this helps.
Hi Andrew (again),
You may also want to identify which state you are happy to invest in – you may get some recommendations.
Would ideally buy in Perth with renovations done by a recommend 3rd party. I’m from Auckland but now live and work out of Perth and feel this is the place to buy due to affordable house to people’s income and low rental vacancies.
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