Forums / Property Investing / Help Needed! / casual worker trying to enter property market – can it be done??

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  • Profile photo of Miss JayMiss Jay
    Member
    @miss-jay
    Join Date: 2012
    Post Count: 4

    Hi all,

    I purchased my first investment property 4 years ago with my husband.  It is cash flow positive now and returning approx $80 per month net profit.  As the higher income earner the property was brought in his name though I do all the accounting, property management, repairs etc.  We separated 9 months ago and I still manage the property (although it is still in his name).  I have returned to work but have only been able to get 'casual' hours so far so I do not have a full time salary, do have kids and don't have bricks and motar assests behind me (having sold the family home upon separation I will have some limited funds upon financial separation so I am trying to forward plan now so I don't waste the money).  Does anyone have any experience in being in this type of situation and getting back into the property market? Is it possible to get an investment property loan without a FT income and no 'asset'? If so, how?  Any help would be appreciated.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Hi Miss Jay
    Financing a property on a Casual wage can certainly be done but lenders will want to some consistancy of income so you are probably going to need 6 months work history. If you are in a similar field to when you were working full time then maybe less.

    In regards to maximum borrowing you are probably going to be limited to circa 90%
    Loan to valuation so whilst you won’t need property asset backing will still need
    a cash deposit / equity.

    A bit more hard data would probably be needed to provide a further structured answer.

    Cheers

    Yours in Finance

    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 WomeninPropMelbWomeninPropMelb
    Member
    @womeninpropmelb
    Join Date: 2008
    Post Count: 234

    HHmmm How many times does Richard want to help you Miss Jay? I am not sure why the repeated same posts.
    He is right though- will be harder but can be done. And I am sure it will be worth the effort once done.
    I am in similar situation myself having separated from my ex.
    It is a good idea to meet with a broker to see how it can be done so that you can work toward that goal.
    Be mindful though- I met many times with my LOVELY broker over the course of the property settlement but by the time we got to settling- the finance market had changed again.
    There is apparently a new product out there which may be of benefit in your situation.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Wip must admit 5 times was a bit much but Internet connection in Whisler Canada is not the best and the iPad isn’t adjusting to Mountain time.

    I know the product you are referring to but won’t help Miss Jay unfortunately.

    Cheers

    Yours in Finance

    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 WomeninPropMelbWomeninPropMelb
    Member
    @womeninpropmelb
    Join Date: 2008
    Post Count: 234

    Richard- I see how this happened- it just happened to me too for a 2 times. But I am not in Whisler Canada…..

    Profile photo of Miss JayMiss Jay
    Member
    @miss-jay
    Join Date: 2012
    Post Count: 4

    Hi Richard and Womenin Prop Melb,

    thanks for this – I have been working for 12 months in my current role having been self employed for the past 9 years prior but looking at my EOFY earnings this year I don't think a lender will look twice at me until I settle the joint assets so I think my best move would be a) get a FT job and/or b) settle the assets  (this could take a little longer than I would like). Richard, I will make contact with you privately later in the week to discuss futher if you have time.

    thanks both!

    PS It is a tough life for some having to be in Whistler – I am jealous!!!!!!
    PPS WIP – do you know of any women investor groups in Newcastle NSW?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Pleasure Miss Jay.

    Nice part of the world Newcastle, my wife was born and bred in Merewether.

    Regards

    Yours in Finance

    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 Ephraem1Ephraem1
    Member
    @ephraem1
    Join Date: 2012
    Post Count: 17

    As stated before a broker may give you an idea which loan products are out there. Have you ever considered paying directly to an owner? This would allow you to buy the property without a loan and you could still try to obtain a bank loan some time later.

    Profile photo of WomeninPropMelbWomeninPropMelb
    Member
    @womeninpropmelb
    Join Date: 2008
    Post Count: 234

    Vendor finance is a good idea. Usually the price is higher to account for the longer settlement.

    Profile photo of John MaxwellJohn Maxwell
    Participant
    @john-maxwell
    Join Date: 2010
    Post Count: 30

    Being self employed with a long term ABN may give you a few more options … but your Mortgage Broker will be able to advise what products are suitable … especially if he is good! lol
    If serviceability is an issue for the property you wish to purchase … then you can also consider finding a suitable ‘financing’ partner that has enough income to achieve what is required, and purchase together! You can also investigate setting up a property trust … this can be done very cheaply if you know where to get a good trust deed template. You can get these for about $450.
    If it’s something you want to achieve … there will always be a way! Keep going… you’ll get it!

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