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Interested in purchasing an investment property help

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Tanya | 06 Nov 2013, 03:46 PM Agree 0
Hey I'm interested in purchasing my first investment property. I currently live at home with my dad and regularly pay the bills. I earn around 1000 a week by I am a casual worker so I would only be able to borrow around 300000. Just wanted some advice on how much I should have saved so far I have 25000 and want to know how much I'll need each week for repayments on top of what the tenant will pay. Who do I go through etc
  • aufinancialplan | 07 Nov 2013, 11:00 AM Agree 0
    Hi Tanya, I'm not sure about your full situation or your credit situation. The bank will need to provide a pre-approval before you can do anything. A 20% deposit is a safer way to buy property as you are borrowing less and there is no need for mortgage insurance. You would need at least a 10% deposit typically to get a loan approval to purchase an investment property. On top of this you may need to borrow the mortgage insurance as the loan would be at 90% loan to value ratio (this cost could be a 3k or so) . Also you need to pay for stamp duty and legals. Depending in which state you buy in your could get a stamp duty rebate/concession. . In any case make sure you get advice from an adviser or mortgage broker before you do anything as there a lot of things you need to learn before you commit to your first property. Hope this helps.
  • michael | 10 Nov 2013, 09:01 AM Agree 0
    HI Tanya
    I know of a builder in mackay doing great deals $35000 back on house and land packages at $495000 fully tenanted for 2 years at $540 per week.Which means you can actually make $75.00 per week cash flow positive. If you find a better deal let me know because I've done a lot of research.
  • Tanya | 13 Nov 2013, 11:32 AM Agree 0
    I live in melbourne so would much prefer doing it around the victoria region. But thankyou for that offer. I am still trying to get my head around everything as there is so much to know.
  • Tom | 16 Jun 2014, 05:44 PM Agree 0
    Tanya, it may be best to consult a good mortgage broker to help determine what you could potentially borrow. A gruarantee from your parents may also be necessary. A good mortgage broker will be able to advise you on this as well as set a suitable strategy for your investment property.

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