All Topics / Help Needed! / deposits!!

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of crawfy22crawfy22
    Participant
    @crawfy22
    Join Date: 2003
    Post Count: 3

    hi there, i am keen to start out finding pcflow property, there is just 1 quuestion i have. deposits… how do i go about aquiring propertys with little or no deposit down, i currently have 1 property (n gearing) and my first goal is to purchase p flow property to be able to pay the house off.
    cheers!!
    crawfy

    Profile photo of Fast LaneFast Lane
    Member
    @fast-lane
    Join Date: 2004
    Post Count: 527

    Hi,
    If you are in a strong financial position or it’s a really good deal eg. Price $100k, Rent $250pw you can often buy with no cash down. There are other factors, talk to one of the brokers, they’d be better to help.

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

    There are some ways to buy without a deposit.

    1) 100% finance. this is hard to qualify for and is often only for owner occupiers.

    2) use equity in existing property

    3) stack the contract and lie to the bank.

    4) go for 95% loans with LMI capitalised to minimise cash outlay.

    It generally doesn’t matter how good your deal is, or how good the rental yield is, you will usually require one of the above methods.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scotty BScotty B
    Member
    @scotty-b
    Join Date: 2004
    Post Count: 44

    3) stack the contract and lie to the bank

    [confused2] and how does one do this?

    I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Stacking the contract refers to the practice where the price is inflated but the vendor only accepts the original offer. This excess then becomes your equity.

    It is illegal and not only would I not recommend it, I will not be involved as a broker. I would be surprised if any reputable broker would.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Todays Hot Rate
    ***3 year fixed – 6.49%***

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478

    You could also ask the vendor to leave the deposit in the deal as a second mortgage (called vendor finance). Make sure your lender is okay with this first though.

    Keep smiling
    Felicity 8-)

    Profile photo of Jenny1Jenny1
    Member
    @jenny1
    Join Date: 2004
    Post Count: 269

    [biggrin]
    Have you read any of Steve’s books it goes over lots of different ways to aquire property with little or no money.

    He also goes on to talk about property that doesn’t perform from day one (re your negative geared property). Might need to go over figures again see if it is worth keeping and use equity to purchase other properties or cash up to then only buy +cf properties.

    Good luck

    Jenny

    Jenny Jordan

    Profile photo of drgkudrgku
    Member
    @drgku
    Join Date: 2004
    Post Count: 1

    I can help you buy a property with little or no money down. My company specialises in this and WRAPs.

    email me: [email protected]

Viewing 8 posts - 1 through 8 (of 8 total)

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