Hi there, I'm very new to the investing game. In fact I just bought my first property in June this year. I paid 310000 for it, owing the bank 280000. It's a neutral cash flow property in Sydney. I'm looking at expanding my portfolio to buy another property in the lower socio economic areas of Sydney. I'm currently on 87000 a year with no rent nor bills besides the phone and Internet and a few grand on the cc. My income of this amount is only guaranteed till the end of 2013 so I'm keen on investing aggressively buying neutral/positive geared properties. Is this a sound game plan? How could I purchase a property with only 5 percent deposit?
I am not a broker suggest you talk to Richard Taylor who is 007 here a very good broker
However you have said you are green. Then make sure you are not. Carefully do your due diligence and work out a plan as to what you want to do. Most people who lose money in property do so because they do more due diligence on what blu ray player they will buy than they do on the property. They go to seminars and get sold overpriced property or they buy crap.
However if you buy without due diligence then you only have yourself to blame.
So measure twice cut once, in other words check everything twice before you make a decision. Write up a life plan includiung your personal and business plans
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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Hi boondog
The most a bank will provide a loan for is 95% plus mortgage insurance which can be added on top. Generally speaking, this means you need to come up with the 5% deposit plus enough funds to cover costs such as stamp duty, legal fees, ect.
You don't have enough equity in your current property so you're only option at present is to save the deposit/costs for the next purchase.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Nigel Kibel wrote:I am not a broker suggest you talk to Richard Taylor who is 007 here a very good brokerRichard's userid is Qlds007
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Boondog,
You said, "My income of this amount is only guaranteed till the end of 2013 so I'm keen on investing aggressively buying neutral/positive geared properties. Is this a sound game plan?"
On the limited information available it sounds as if you'll need all of your cards to fall into place and at the right time.
You are not sure of income beyond the end of next year and you are seeking to highly gear yourself. On this basis alone it wouldn't take much for the wheels to fall off your plan.
Given Jamie's comments above about your restricted equity level I would be first addressing that so you can put yourself into a position to move again when you have a more certain future.
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