Hi,
I am just wondering if I could get some advice – I'm wanting to buy my first property (and begin my investment portfolio). I currently work two casual jobs with income and tenure as follows:
Job1: $10,000 Gross per annum (coming up to 5 years with this employer)
Job2: $22,000 Gross per annum (just on 12 months with this employer)
I have a good credit history (no debt, paid off personal loan in full etc) and have saved $16000 for a deposit (in addition to the 21,000 FHOG). I have been looking at building a house for the 300k range (therefore a mortgage of approx 270k). My intention is to build a property and live in it for 6 months (to satisfy fhog criteria), but rent out the remaining rooms bringing in rental income of $15000 per year (3 rooms @ $100/week).
My question is – how is this going to place me when applying for a loan in terms of meeting lending criteria and proof of income etc? Any advice is greatly appreciated!
Invest
Sorry to be the bearer of bad news but on a total gross income of $32000 you will not be able to show serviceability to the level of $270,000.
Might be a way around it but would need some creative financing.
Richard Taylor | Australia's leading private lender
Agree with the person upstairs. The size of the loan is too large.
consider a loan four times your yearly gross income.
get someone (your parents?) to be your guarantor. Tell the bank that you're going to rent the rooms out.
They can split the loan into a residential component and investment component.How much can you borrow with a total saving of $50K how does the crietia for loan lending work?
Also what are peoples thoughts on the Government home saving account at 17%? As I am looking at buying my first IP in 12-18months time and want to invest my funds to make more money within the next 12 months?
Thanks
Fergs
Serviceability is calculated in so many different ways with each and every lender but in essence the difference between your income and expenditure is the amount you have available repay a new investment loan.
The catch is the what is considered as income and expenditure and this is the bit that varies considerably.
Richard Taylor | Australia's leading private lender
Thoughts on the Government home saving account
It restricts access to your savings for four years.
and the funds are only released if you meet the first home owner elligibility.
I do not like any savings scheme that restricts access to my money that's right my money
same with non compulsory super contributions its my money I should be able to access it when I want to.Hence I have no non compulsory super savings.
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