Hey everyone,
I’m looking for some advice about my specific circumstances. I’m a single female looking to get into the property market now. I’ve done some research and have just started reading Steve’s book (from 0 to 130 properties in 3.5 yrs). I’m just getting a bit confused because I’ve talked to some friends about my plan and I’m starting to rethink. I don’t know much about investing at all and I appreciate any advice.I don’t earn a lot of money and speaking to a home loan guy, I can get a loan for 260k. I’ve saved up a deposit of 46k (that would need to cover stamp duty etc). Obviously I’d have to pay the LMI as I have less than a 20% deposit. That can be added to the loan amount. It was suggested I look to buy something in Brisbane for 280-290k.
As it’s an investment property (I pay reasonably cheap rent where I am), I am
not sure what to buy. I did some research into good suburbs to buy in and originally decided on a 2 bedroom townhouse in Taigum and renting it out. Now I’m thinking as everyone says , apartments and units are not a great investment due to oversupply. Other people have also told me to look at other suburbs like Redcliffe and Deception Bay. I know that people think I should buy a house but I can’t seem t find anything around my price range.I work and am not good at fixing things so I’m not interested in buying something to fix up. I really just want a property that makes me money. I’ll get a Property Manager to handle things like tenants etc.
Appreciate your thoughts. Thank you in advance .
Kim
Hi Kim
Welcome to the forum and home you enjoy your time with us.
Your loan serviceability will be based around your own PAYG income together with the potential rent on the property you are looking at less an allowance for your living expenses, monthly percentage based on your credit card limits, other loans etc.
Then you have the maximum lvr you can borrow against the property based on your deposit.
Whilst you may find that your serviceability allows you to go to $260K you may find that your deposit may not be sufficient.
Based on a 290K purchase price and say a maximum 90% lend inclusive of LMI you are going to need to come up with $29,000 deposit + $10,500 (stamp duty, transfer, legals etc) and then a further amount of say $4435 in LMI totalling $43,935.
With 46K you would get in with a little cash buffer to spare.
Course ideally you would reduce the LVR to the LMI sweet spot of circa 88.5% so might use that buffer up or alternatively go with a lender that allows you to capitalise the LMI over and above the 90%.
As far as the actual property personally i wouldn’t focus on a unit or townhouse when on the other side of town you could buy a freestanding dwelling for the same price and have no B/Corp etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Kim
Welcome aboard :-)
I’d hit up a finance guru like Richard above. He’s provided some awesome initial advice already.
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]
Can I also suggest that you continue to invest in your property education. This is much cheaper than you think.
Keep reading books. I started off by reading everything in the local library. There are also some great podcasts out there (every day property investing, real estate talk and bigger pockets) and then there are the investment magazines (not that I agree with every thing in them). See if you can find a local property networking group to meet with like minded people. Get on to regular e-mail lists of quality commentators for Buyers Agents and other reputable commentators.
The final thing to do is to see if you can find some one in your local area who is playing the game and doing it well. A few calls to local real estate agents and settlement agents will give you the names you are looking for.
Approach them for a coffee, explain your interest and offer to be their assistant helper. You will have to be persistent (If they are good it will be the first quality they will be looking for in some one. You will need to prove you are worthy). The knowledge and experience you will get will be priceless.
Finally if you can afford it get a coach, to over come those noises in your head that hold you back. Mine changed my life.
Remember this is a long distance run, not a short distance sprint. Too many people forget this.
Thanks everyone for taking the time to reply :)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
