Hi everyone,
My name is Matt and I live in Melbourne, Victoria. I am hoping I can get some help on my current financial situation/future plan. Recently, I have began full-time work and I am determined to create a diversified investment portfolio.
Existing Assets:
– Salary = $40,000 after super
– Land = value between $130,000 – $150,000 (inclusive of a $65,000 road scheme debt…. by my great mates down at the local council). The land was given to me when I was 2 years old.
Aim:
– To purchase an Investment property or PPOP
– To enter the share market (Ordinary shares + index funds/mutual funds)
My question is:
How long do you think I should wait before I invest in property? If I put a good savings scheme in place, would a bank lend me a mortgage on a wage like mine?
Thanks,
Matt
Hi Matt
Welcome aboard
Best to speak to a decent broker about your borrowing capacity to find out what's feasible for you at the moment.
How long you should wait until you start investing in property comes down to your own mindset and the assessment I mentioned above.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Different lenders will lend different amounts. Some are conservative in their borrowing capacity and other are more generous.
If we make a few assumptions like we use a more generous lender, the fact that you are single, with no dependents, then you would be looking at the high $300's in terms of servicing. Use of proposed rental income would certainly increase this amount.
Also I would consider accessing the equity available against the land at 80% in order to fund for further purchases – whether thats shares or a deposit for another investment property.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Matt
Welcome to the forum and i hope you enjoy your time with us.
Subject to the location of the land and it being acceptable security to a lender there is no reason why you can't start off now.
The way in which you structure the loan will be important to ensure the securities are not cross collateralised.
If the property is a PPOR then regretfully the concessionary Stamp Duty has gone in Vic and the FHOG has limitations so unless you feel you have to move from your current property i think I would stay put and start to build an investment portfolio.
We normally recommend to our clients they start with a good yielding property which can certainly assist in their servicing down the track should they decide in the future to buy a PPOR.
You can minimise your risk and structured carefully should be able to acquire an investment property as well invest in some quality shares.
Doing a deal for another forum client at the moment in exactly the same position as yourself so feel on your income you can't achieve what you want to.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Cheers for the advice!
Well the problem is… the debt on the land is growing by 9.66% annually, so I kind of have to get the property on the market. Im not sure how the land is classified. I received it in 1993 and theres no buildings on it + it's based down in metung, victoria (out of the city).
How does this plan sound:
Plan to buy
– House = $400,000 – $500,000
Funded by
– Deposit = $40,000 – $50,000
– Land = $150,000
Plus Loan
– To make up the remaining 90% of IP
– To cover Debt on land ($65,000)
= $425,000 – $525,000
Would it be possible to get a loan that large considering the equity I will have?
Short answer is yes if the application is structured correctly. Make sure you draw upon the equity against the land and not linking the securities together.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Would appear to be doable on the surface.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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