CBD Purchase Quandry

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

Mart
Member
@mart
Join Date: 2004
Post Count: 2
January 27, 2004 - 10:42 am
My wife and I have been looking at CBD properties in Melbourne. We have 5% deposit, but have been told that we will be unable to get a loan due to the mortgage insurance restrictions when buying in this location (ie. CBD, Docklands, Southgate). We’re planning to occupy the residence, and are first home buyers. The advice we have recieved is that unless we can find the additional funds for a larger deposit in order to skip the mortgage insurance, we will be unable to get the loan. Any thoughts? Any way around this?
Cheers
Mart
Buzz Lightyear
Participant
@buzz-lightyear
Join Date: 2003
Post Count: 43
January 27, 2004 - 2:00 pm
Mart,
Mortgage insurers not even offering LMI on these properties at the moment (especially Docklands). Are you both entrenched in the idea of an apartment? I am assuming the location is due to proximity to work? I am not sure if there is anything you could really do in this location with 5%. West Melbourne or North melbourne (which are close by) which may be a more viable option. (West Melbourne is under-developed relative to the rest of city and inner suburbs).
James
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
January 27, 2004 - 2:18 pm
Mart, save like mad, and wait for the investors who can’t get tenants to either sell up, or be willing to rent for a ridiculously low price just to have someone pay for at least some of the mortgage for them.
If you can get a good rent deal, you could possibly then look at investing elsewhere, and building some equity that way so that you could buy a place. Or rent from one of the abovementioned owners, and see if they would be willing to do a lease option with you. They might be desperate to sell and go for it.
Good luck
Cheers
Mel
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
January 28, 2004 - 3:42 am
Yes that sounds correct. Depending on the postcode, you will probably need at least 20% deposit for an inner city place.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Mart
Member
@mart
Join Date: 2004
Post Count: 2
January 29, 2004 - 2:12 am
Thanks all for your responses, much appreciated. I guess our best option will be to save more, and look to negotiate a cheap lease agreement in the mean time.
cheers
Mart