Hey everyone,
I'm a 21 year old from Brisbane.
I've been putting away $2000 a month for a deposit (I currently have $16000 and no debts) and I want to get into the property market as soon as possible. I understand that with a deposit of less than 20% I'd have to pay LMI but I think I'd rather pay that than wait a much longer time to get the 20%.
I'm looking at properties between $280k-$350k in the brisbane area to live in. Eventually down the road I would like for it to be an IP. How much of a deposit should I save before seeing a mortgage broker?
Thanks in advance, you guys are all so knowledgeable!
Hi and welcome aboard.
There's no wrong time to have a chat with a mortgage broker.
If you're not ready to purchase now, they'll be able to advise on what you need to do in order to be in a position to make the next step.
They'll also be able to explain the process to you and answer any questions you may have.
I don't actually see LMI as being a bad thing – it's a pain having to pay an insurance that protects the lender but at least it enables you to get the keys to your house sooner.
Here's an article I wrote on taking advantage of LMI.
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]
There's an old joke that goes like this (clean version)
An old bull and a young bull were standing on a hill looking down on a valley full of cows. “Hey”, says the young bull. “Let’s run down and enjoy one of those cows…”
“No”, says the old bull. “Let’s walk down and enjoy the lot.”
So the moral of the story is slow down young fella. In 12 months you'll have $40k and that puts you in a much stronger position and will improve your economic outlook substantially.
The property market isn't going anywhere for some time. Its been drifting for a while now and there's a better than even chance it will drift downwards. That'll give you time to actually learn a lot more because right now your cumulative knowledge wouldn't fill the back of a postage stamp.
Patience… the most important and effective investment skill you'll ever learn.
Hi Vmilne
Firstly welcome to the forum and i hope you enjoy your time with us.
If we go back to answer your original question then in the current climate with 5% genuine savings and sufficient funds to cover your costs you should be able to secure finance to cover the balance (subject of course to income and credit history).
Remember in Qld the old FHOG has been replaced and is only available on new property or construction.
Still wont be any Stamp Duty but we will need to cover your other acqusition costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No harm in talking to a broker or a banker about your financial position to see what can or cannot be done. Also what you may need to do to purchase the type of property you want to purchase.
I would err on the side of what Freckle is saying in that you should focus on saving but concurrently research and understand the market that you are about to invest in.
Whats your strategy?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
I would talk to a broker
before, during after
all the time. Especially if they are outstanding like the ones on here.
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
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