All Topics / Help Needed! / Need help calculating costs!

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of EdgysquidEdgysquid
    Join Date: 2006
    Post Count: 9

    Hey all

    just a quick question
    ive found a block of 3 flats for $270k, with each flat renting for $160.
    i would like to know how much initial cash i would need to be able to aquire this peice of australia


    Profile photo of HookhamCHookhamC
    Join Date: 2007
    Post Count: 83

    Depends on your situation. Maybe nothing!
    Get a great MB and see what he or she can do for you.

    Profile photo of kpikpi
    Join Date: 2006
    Post Count: 30

    Hi Crum,

    You may need as little as $1000. As advised already, get yourself a good mortgage broker and they will soon let you know, if you can borrow the amount required. Ie. Service the debt through your existing income and also make sure it meets valuation etc. Good luck with it, sounds like it could be a good buy.

    Profile photo of EdgysquidEdgysquid
    Join Date: 2006
    Post Count: 9

    Thanks guys!

    I was baiting a bit to see if I would get a reply so now i will give the full details….

    I’m 18 and have been working for my parents for the last year after having finished school, and last year stumbled across Steve’s book. That was early in the year and after that I was set on property investing but then I became pessimistic about the property market, so I invested money in the share market. Now that money has done ok, not good, not bad just battling along!
    it was only last week that I revisited the whole property thing, so I investigated my local town, Longreach to where i discovered that although there is like .00001% capital growth there is quite good returns, and so here I am now.

    problem is I earn a rather small amount of money (read small) so that’s why i need to know how much i kneed to start, on the flipside an incentive for the mortgage companies my parents are more than happy to be guarantors

    I know it’s a noob question but kpi how do I only need $1000 when i have to pay stamp duty and all that sort of stuff

    yay [party]

    Profile photo of v8ghiav8ghia
    Join Date: 2005
    Post Count: 871

    Exciting stuff eh? Sounds like an excellent cashflow property – in fact, if you have no other financial committments, with this rental return, you would only need to show an income of between 30 to 35k per annum gross to ‘service’ this loan, on the assumption that you pay $200 per week rent, and are single with no other debts. Obviously that will vary, but depends on whether more or less. Yet at 18, it is unlikely the Mortgage insurance companies will lend 95% of the purchase price in this current climate, so if you had a higher deposit, the amount required to service the loan will decrease. If you had/have a 15 or 20 % deposit it should be a no brainer – any less and you will probably find it challenge. All the best though, as they say, you never know unless you have a go……[strum]

    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post Count: 12,024

    I disagree with a couple of the previous posts.

    As a multi unit dwelling the LVR will be totally different and whilst a 95% LVR would be achieveable with a post code of 4730 3 of the big 5 banks would not lend more than 80% if the units are one 1 title.

    The remaining 2 majors will only accept 70% of the rent so serviceability is an obvious issue. GE will not provide cover which rules out 1 of the remaining 2 lenders and PMI is on an application basis with a prefered range of 80-90% LVR.

    These properties are readily available in western parts of Qld but financing them is not as easy as first sounds.


    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of EdgysquidEdgysquid
    Join Date: 2006
    Post Count: 9

    v8ghia tank you for lifting my spirIt to the point where i thought it could happen
    Qlds007 thank you for reversing that feeling

    what about this one then a 3br house for $110K renting at $180?

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