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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of Griffo_djpGriffo_djp
    Member
    @griffo_djp
    Join Date: 2007
    Post Count: 4

    Hi all,  just wondering if anyone could give me a heads up with starting out.
    i'm 21 and have been offered a house and land for 340k from my grand parents who inherit it. it was valued at 420k may last year. they are goin to do vendors finanance at
    5%pa i have 68k in a savings maximiser. Just wondering about my options to by the house then use the equity to purchase a property and get some possitive cash flow. and then continue to purchase more properties or pay off the mortgage for the propety asap
    thanx for any info

    Profile photo of AmandaBSAmandaBS
    Participant
    @amandabs
    Join Date: 2005
    Post Count: 549

    Wow what a great start at such a young age.  Perhaps you can move in so you get the 1st home buyers grant and rent out the other rooms for some extra cash. 
    I'd suggest you pay for an independant valuation though before you sign on the dotted line, just to protect yourself!!

    Profile photo of Kipper57Kipper57
    Member
    @kipper57
    Join Date: 2006
    Post Count: 252

    Wow what a great start 80% LVR before kicking in your deposit so plenty of room for investment.  Not sure about renting the rooms out as some times can be an infringement on your own privacy but guess its up to whether you are comfortable with that.

    Profile photo of Griffo_djpGriffo_djp
    Member
    @griffo_djp
    Join Date: 2007
    Post Count: 4

    What does LVR stand for Wayne?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    LVR = Loan to Valuation.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Kipper57Kipper57
    Member
    @kipper57
    Join Date: 2006
    Post Count: 252

    Loan value ratio = LVR the value of the property according to your post is 420k the amount you are buying it for  being 340k is just about the 80% to be more precise 81% therefore you have almost 20% equity from the start if the valuations are correct, you would need to kick in 4k to avoid mortgage insurance.

    You could choose to pay the 68k as a deposit to reduce this even further, reducing what you own on your own property, then create a split in your loan for an increase.  This new loan is accessing the equity in your property which can be used for purchasing your investment/s.  Or you could keep most of that money in the fund if you chose

    Profile photo of PursefattenerPursefattener
    Member
    @pursefattener
    Join Date: 2004
    Post Count: 217

    GriffO

    Good for you ..

    Could you tell us how you have managed to save 68k  at such a young age ? You would be in a far better position than most young folk I know . Your folks have done a good job on you

    Profile photo of Griffo_djpGriffo_djp
    Member
    @griffo_djp
    Join Date: 2007
    Post Count: 4

    i left school at 15, (year 10) started refrigeration apprenticeship. tradesman at 19
    lots of overtime and saving. and i am currently one and a half years through my electrician apprenticeship

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

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