Hey guys, I’ve recently joined and just received an email saying don’t be scared to post on the forums, so here goes.
I have a couple of questions.
First off, I’m always advised to go and talk to my accountant or financial adviser no matter what I read… I don’t have an accountant or financial adviser, so what i’d like to know is what is the cost of an accountant/financial adviser and how often should you see them?
Secondly, I’ve been told that for an IP you need to have a 20% deposit, is there any truth behind this?
Thirdly, if I was to buy, for example, a 3 bedroom place and make it my PPOR but rent one of the other rooms out what affect would that have if any?
I’ve been reading through the forums and have found a lot of useful info (thank you all very much), but nothing about this.
Sorry if they seem like stupid questions, but I figured there’s no harm in asking.
Mitch
Hi Mitch
Firstly welcome to the forum and hope you enjoy your time with us.
Promise there is no such thing as a stupid question and most of us old timers don’t bite so feel free to ask away.
Ok here goes:
1) Certainly an Accountant and a Financial Planner could have a place in your team however certainly for the average investor just starting out it is probably overkill.
A Financial Planner is going to be more likely to direct you to a range of managed funds etc (I am a FP and seem to one of the very few that focuses mainly on property).
Your first port of call i would say would be an investment orientated mortgage broker who can provide you suitable credit advice, run some numbers on serviceabilty and give you a broad based starting point.
2) As far as deposit – 20% on your first investment property is ridiculous. Realisitically max loan would be 90% lvr and waiting to save up an additional 10% would take forever.
3) No issues in buying a PPOR and renting out a few rooms. You wont be able to use the border income to increase your serviceability however will certainly help cover a few expenses. Just make sure you notify your insurance company to ensure you are fully covered.
Stay around read previous posts and if you feel we can help it’s simple just shout.
Remember we all had to start somewhere.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi Mitch,
1. When your starting out and researching, there is no need for an accountant or financial adviser. These will come along the way through networking.
2. As far as deposit goes, generally you should aim for a 10% deposit and also a little bit more for the funds to complete the purchase. This is where a lot of first time investor forget or don’t know about.
3. If your a first home buyer then you may be eligible for the first home owner grant and this is different across all states. Also renting out one of the room is a great way to reduce expense but it will not be counted towards your affordability of your loan.
Cheers,
Andrew
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