Hi everyone,
I have a great deal of pleasure reading Steve’s book on +ve cash flow property investment. However, I would like to find out more in details of how to build my property portfolio at the beginning stage.
_ I am on 38K salary, living at home. I would like to set a goal/target of +ve c.f.properties to be acquired each year. What is the realistic achievable number of properties here in my case ? (It is certainly different for different people, but let assume you were in my situation.)_ In Steve’s book, it is not mentioned on specificly on the strategy on how to acquire your second or subsequent properties.
_ If I had one +ve cash flow properties and I had enough cash to fund for the deposit of a second property (20%), is there any reason that the lenders would refuse my application ? (Del, I think I have asked you something similar, but i am still a bit unsure [
])Thanks everyone
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NKP.S: Thanks Del for the info on Mortgage brokers, i think it is the best way to save time and money.
Hi New Kid
You’re in a great position at the moment while you are living at home. I would sugget you might look at going for 95% loans earlier on. the reason being, the less money in, the further your savings stretches. Also as you get more properties it becomes harder to qualify to pass teh lenders mortgage insurance guidelines.
Say you are looking around the $100,000 range and assuming 10% rental yield, you should be able to buy around 5 or 6 at 95% LVR-maybe even more -another 6?. You will need to come up with 5% deposit and costs. Some Lenders (ANZ, suncorp) allow you to borrow the LMI on top of the 95% loan as well reducing your upfront cash needed.
How much cash do you have at the moment? after a while you will ahve to increase your deposits from 5% to 10% then to 20% as you ‘hit the wall’ with LMI. If you can keep comming up with 20% deposits, then you can go far. Accessing the growth in the earlier properties will help as well as saving hard. (I did 5 x 95% loans with one bank in less than a year on a similar salary a few years ago)
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi,
In the book I mentioned that time rich but money poor people can look to do JVs and share the profits.
Or else you can sell the deal to another investor, cash up and then buy your own property next time around.
In your case, start slow. Look to buy say 2 properties per annum at the beginning while you find your feet.
Terry raises some good points, but just be sure about your risk profile before doing 90%+ LVR loans. Too many may leave you open to credit risk (ie. a rise in r/i).
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Steve, your book is titled 0-130 in 3.5 but here you are saying to get just two in the first year. I am not having a go, I’m new to forum, looking to start investing and your advice seems at odds with your book. Looking forward to your response.
Steve.stevod,
Watch out the Enjoylady will get you for criticising or maybe you comments weren’t regarded as rude like mine appaarently were perceived to be. Only kidding Enjoylady.
bribie
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