AJCParticipant@quokka37Join Date: 2014Post Count: 11
Just wondering what everyone would do if they suddenly got 125k hypothetically?Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539JpcashflowParticipant@jpcashflowJoin Date: 2007Post Count: 575RedwoodParticipant@redwoodJoin Date: 2013Post Count: 340
Open ended question and really depends – for me I’d use it for a deposit and fund a new development – but that is me. Really depends on the source and the strategy, no strategy and you may be better heading to crown and betting on black?
Cheers IvanJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069xdrewParticipant@xdrewJoin Date: 2010Post Count: 479
It depends on the other parts of the scenario you have.
If you are earning 35k you can borrow about 200k-ish and get a 300k property of some sort.
If you are earning 65k you can borrow about 350k-ish and get a more substantial property around the 430k mark (stamp duty and transfers starts to get big)
Having been in this scenario with my benefits dependant cousin about 3 years ago .. she just needed to increase her existing asset and income folio so the banks would take her seriously. So she purchased 2 units at a low market value straight out, and then .. cpl months later .. when she had revenue streams and a path of 100% ownership .. she also borrowed money to purchase more units.
She is no longer requiring benefits.
The choice you make will be dependant on your existing situation and your comfort level for attacking the market. If you are new and dont feel secure with a level of risk component .. take it slow and find your happy level of investing .. because at the end of the day .. minus the stress .. is where you will find your investing to be not only fun but profitable.
Again .. as always .. the two important rules … know your market .. know your limits.Just do itParticipant@just-do-itJoin Date: 2006Post Count: 10
If I came into $125k, I would buy 4-5 cash flow positive properties with 95% lends. Most would need renovation work (5-15k each) but value adding approximately $30 – 50k each once complete with strong rent returns
I am 30 and own 15 investment properties bought over the last 7 years. Works for me….
Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
- This reply was modified 5 years, 7 months ago by Just do it.
Firstly you wouldn’t get 95% lend on 4/5 properties so don’t waste time going down that path.
As Jacqui wisely said it depends on a number of factors and what is right for one member would not be right for another with totally different aims and objectives.
I own 43 properties in a variety of entities and with next to no debt (in fact Nil from next Friday) so for me $125K would be 1 months Gross rents however someone starting out could sensibly with some planning and financial discipline start a portfolio with that sort of deposit.
Without indepth knowledge of the posters requirements a response if fairly aimless.
Yours in FinanceJust do itParticipant@just-do-itJoin Date: 2006Post Count: 10
CBA havent had a problem lending us 95% over the past 7 years. At one stage they changed their policy on investment properties to 90% but that has since been reverted back to 95% for the last few years.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Not many lenders doing 95% + LMI for IP’s these days though. The ones still doing 95% lends won’t add LMI (it has to be 95% inclusive of LMI).
Those that still do them aren’t too keen on them – so credit score harshly.
JamieRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
CBA will not do 95% lvr on an IP if you do not own any other properties or if you are not an existing CBA customer.
Yours in Finance