hello i have $17,000 in savings and earn $39,000 p.a….i want to get started in property investing but dont know where to start
Hi Sav
Usually one of the first places to start would be to work our how much you can afford and get an idea of your borrowing capacity as this will influence the type of property you can look to purchase.
Whilst when you purchase an IP lenders will factor in the rent received from the investment your own expenses such as rent, credit card or other loan repayments will be considered a liability and will effect the amount available to you.
A good mortgage broker should be able to crunch the numbers and give you an early indication.
Richard Taylor | Australia's leading private lender
Hi Sav – and welcome to the forum.
My first sugestion before you talk to anyone (makes you sound like you have an idea too) is to have a play on the internet with a borrowing calculator/tool that allows you to pick your state, deposit, purchase price etc, and will then give you a good idea of costs. Most bank websites have these, and even the 'mainstream' brokers website, the MFAA also has similar tools/calulators.
If you are happy to pay some 'lenders mortgage insurance' (applies as a once off 'risk fee' when you have less than a 20% deposit as a rule) have a play around with using a 10% deposit, and see if you are comfortable with what you find. Remeber, each state is different, but the govt sticks it to you in stamp duty, and there are additional costs too. A classic eg. I recall, was when I knew someone that had saved up $20k approx, and wanted to buy a $300k home. You guessed it – stamp duty and the above mentioned insurance added up to him having a $0 deposit essentially.Don't be afraid to start small – but you could balance that with nothing venured, nothing gained. The more you spend, perhaps the more time you need to put into 'doing your sums'. a big congratulations too on having saved p that much money for your deposit. Enjoy the journey –
Go to the real estate agent, make an offer then purchase, rent it out and pay the loan back! simple
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