All Topics / Finance / deposit and equity

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  • Profile photo of Phil_2Phil_2
    Join Date: 2004
    Post Count: 45

    I have a question…when purchasing 1 property after another, where do you come up with the deposit…or enough equity to keep LVR’s below 80%?
    In the book 0-13, Steve always has large deposits?

    Profile photo of melbearmelbear
    Join Date: 2003
    Post Count: 2,429

    Initially Steve did a lot of wraps, so he was getting deposits off his wrappees which helped him in purchasing the next one etc.

    Dave also continued to work as an accountant, thus earning more money to go towards their deposits.

    Unless you have some income like that, or explosive growth, be happier with a much slower progress than Steve’s![:)]


    Profile photo of Phil_2Phil_2
    Join Date: 2004
    Post Count: 45

    ahh I see, for a moment there my hopes were up

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    There is no easier answer. A combination of hard work/savings and capital growth. Buying undervalued property and/or adding value in a rising market all helps.

    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of AdministratorAdministrator
    Join Date: 2013
    Post Count: 3,225

    If you have the good fortune (the harder you work the luckier you get) to locate and buy a property which you can more or less instantly flip at a profit then you will produce some income which will go a long way towards establishing a higher deposit for the one you decide to keep.

    At other times the vendor may be prepared to lend you a deposit via an unregistered mortgage (which the lender therefore wouldn’t know about unless you tell them about it).

    However, not disclosing relevant facts to a lender is not ethical.

    I would think that, if one doesn’t quite comfortably qualify for a loan by the bank’s standards, one may place oneself in a situation where, if something goes wrong somewhere along the line, one may possibly create a financial stressful situation for oneself.

    Better to avoid stress (and the consequences) and grow at a bit slower pace ?

    Remember who won the race between a tortoise and the rabbit ?


Viewing 5 posts - 1 through 5 (of 5 total)

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