Hi there,
I’m new here and its great to be here. I am not new to property but am new to alternate ways to buy property.
I was wondering if its possible to have a little bit of deposit and no proof of income yet still be able to purchase a home. I’m one of those people banks don’t like: “Self employed.”
My business is successful at a 80% profit margin for almost 3 years now. And my income is on the increase by about 30% per year or more. So how “much” I earn is not a problem. Its just declaring it.
My credit rating is good. My incomes’ good. I have a little bit of equity in my investment property (18K) and want to buy a home soon.
I don’t know if 18K is enough to buy anything decent though- you know, I mean to use as a 10% deposit. After all where in Melbourne or QLD can you buy something half decent with $18K as a 10% deposit? After all something thats 180K is going to be a dog box in Melbourne! Or you would have to live way out in Woop/woop. Or buy a flat.
What I REALLY want is a 3 or 4 bedroom, newish, brick home in QLD near the beach. That’s the ideal. But I don’t know how I can get it on such little equity. Something like this in QLD costs about $300K.
How am I ever going to get this kind of home? Any suggestions? Can anyone help?
[worried]
Angel
angel007..thats easy
Its just declaring it. ….there lies your problem
do the right thing…the banks say WOW look at that income
and “ding”…….. penthouse in Noosa
it worked for me
Really?
But I don’t think 60 or 70K income and 18K of eq. is enough to buy a 300K property…or is it?
Angel
Hi Angel,
Some lenders are doing 100% lends under certain situations and within certain guidelines. It may be worth having a chat to some of the experienced brokers here.
PS – I will delete the other thread you started so we can keep conversations on this topic in the one area. Keeps it easier for other readers.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Derek,
Thats cool about deleting the other thread, I am new to this forum stuff anyway!
Some lenders give 100%??Seriously? On what planet does this happen? [biggrin] Just kidding!
What situations do they lend on 100%? Thats amazing, I’ve never heard of that before. Is that a little risky? Or is it fairly common in some areas?
Derek do you have anyone you know that I can ask about my situation? I don’t mind paying a little higher interest if it means getting me the home I want.
Cheers and thanks for your reply,
AngelHi Angel,
I suggest you read through some of the finance threads as there are a few Victorian brokers down that way who will give good comment. In no particular order (and apologies to those I miss) you could try some of the following nicks mobile mortgage, stuart weymss and mortgageman. Then of course there are those a little further afield.
You may also want to read the following thread – it may not be the best but it may also get your mind turning over to the possibilities.
https://www.propertyinvesting.com/forum/topic/21767.html
Of course a 100% loan will (if you can get it) come at a cost. However depending upon your situation the cost may be well worth it.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Angel
Some lenders offer 100% and some believe it or not go upto 106% of the purchase price.
I organise many loans for self employed clients at high LVR’s and assure you that lenders in general dont have a problem with the S/E.
Many lenders take into account certain expenses to add back to the bottom line net profit and others take other expenses i.e Super Contributions, Directors Salaries, Depreciation etc etc.
Some lenders average your income over say a 2 year period others are happy to take the last years figures.
Without having all the figures to hand it is difficult to provide you with an exact answer but without that amount of saving never dispair.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
http://finance.news.com.au/story/0,10166,18038015-462,00.html
You shoule be fine now, once one of the banks start doing this, then all of them will.
Regards
Brent2[biggrin]
that article has limited relevance to this thread, as i read it anyway.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneI don’t know if 18K is enough to buy anything decent though- you know, I mean to use as a 10% deposit. After all where in Melbourne or QLD can you buy something half decent with $18K as a 10% deposit? After all something thats 180K is going to be a dog box in Melbourne! Or you would have to live way out in Woop/woop. Or buy a flat.What I REALLY want is a 3 or 4 bedroom, newish, brick home in QLD near the beach. That’s the ideal. But I don’t know how I can get it on such little equity. Something like this in QLD costs about $300K.
How am I ever going to get this kind of home? Any suggestions? Can anyone help?
Well, if 18K isn’t enough to buy something decent, then go the dogbox option.
I fail to see why you need to make the huge leap in one go. Keep your eye on the penthouse in Qld as the end goal and take a 2 or even 3 step process to get it if need be.
If you jump all the way in one go, you may find yourself crushed to death under the weight of a 100% non tax deductable debt for the next 20 years. Meanwhile, your ‘alternative’ multpile dogbox option might have gone through the roof and you can swan into your dream with a cash contract.
Sounds like you want the champagne lifestyle on the beer budget, and are happy to sacrifice the next 20 years of earnings to get it.
Everyone in this modern society starting off needs to make this decision. I’m just highlighting the two end extremes. Maybe somewhere in the mediocre middle might suit.
Originally posted by brent2:http://finance.news.com.au/story/0,10166,18038015-462,00.html
You shoule be fine now, once one of the banks start doing this, then all of them will.
Regards
Brent2[biggrin]
these loans have been around a while but it is still a niche that few lenders seem interested in exploiting. SGB self insure and I think the LMI companies will not be keen on the added risk.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I thank you all so very much for your valuable input.
Dazzling, I am not asking for the Champagne lifestyle, I just want a 3 bedroom house so I can raise children. Thats all. I didn’t think a 3 bedroom house with 2 kids and a husband was a champagne lifestyle! Its not different to people living in Mill Park who have 3 bedroom houses! I don;t see how they have a champagne lifestyle. I just want my own family home. Thats it.
You can’t rasie 2 kids, have a husband and work from home from a 2 bedroom flat in Thornbury for exmple. I didn’t think this was such a huge leap- anymore than any couple wanting to start a family. There are some things in life that are just more important than property- such as family. But I thank you for your feedback anyway.
Guys many thanks for letting me know, I’ll have a good look at some of those links and threads. You are all very kind to help me.
Where there is a will there is a way. To hell with it, I’ve overcome obstacles far greater than this in my life[happy3]!
My advice would be to contact a broker who will give you advice on your situation. If you have $18k deposit thats a great start – the interest rate will depend how much you want to borrow but as long as there is equity in the deal you should be able to do the loan.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected][blink]
Hi Angel,
Are you eligible for the First Home Owners Grant (is this your first purchase of an owner-occupied property)? If so, you should have enough to get a 95% loan.
Are you the sole director of the business? If so, you could use the company profits to help with serviceability. I suggest you contact a good broker to get some advice as to your options.
Kind Regards,
Cameron Perry
Finance Consultant
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
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