All Topics / Finance / Apply for credit, Deposit Questions

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of BenBen
    Participant
    @benny636
    Join Date: 2018
    Post Count: 6

    Hi,

    Say I hold $100K in bank savings that can be used for investment and I dedicate $75K for deposit and purchase costs for IP, would it be alright to place the remaining $25K into other investments (not this IP), and not affect my application for borrowing/gain pre approval etc?

    Different scenario, say I need the the total $100K for IP, should all the money be kept in savings for a period of time before proceeding to purchase or can I invest some/all of it and pull it back out before purchasing an IP?

    The $100K is already genuine savings, with the goal to invest in other lower risk areas before purchase, instead of keeping in cash .

     

    Regards,

    Ben.

    Ben

    Young investor educating myself on property!

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

    Hi Ben

    If you use 25K of your 100K deposit for other investments and there is no additional borrowing on the other investment it will not effect any finance application.

    Cheers

     

    Yours in Finance

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

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 284

    Good Day Ben,

    Agree with Richard in relation to the above answer

    although the above is very simple, it alludes to some of the bigger questions surrounding your situation & that there may be multiple things that can be done to enhance & clarify multiple aspects of your situation your purchase etc.

    All of this will help you better understand where you are, where you want to go & create a map to get there.

     

    If you go through some of the success stories on here I am sure it will provide massive value!

    Wish you all the best!

     

    • This reply was modified 6 days, 14 hours ago by Profile photo of Jaxon Jaxon. Reason: add more

    Jaxon | Jaxon Avery – Financial Adviser
    http://www.jpafinancialservices.com.au
    Email Me | Phone Me

    JPA Financial Services Pty Ltd

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Ben,

    I would think timing might be of some importance….   By that, I mean it may be better to buy the IP and THEN go and buy the other investment with the remaining cash, rather than taking the cash out first, which might impact your borrowing for the IP.   e.g. you wouldn’t want to spend $25k then find your deposit needed to be $80k.  First things first, and you should be OK I would think…..  ;)

    Note – I’m not an adviser of any kind, so check with the right professionals re that.

    Benny

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I did something similar once. I had the deposit invested in shares and the signed a contract, coming up to settlement I was trying to wait to sell at a peak. and settlement was approaching so i had to bite the bullet and sell at a price less that I could have a few weeks prior.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BenBen
    Participant
    @benny636
    Join Date: 2018
    Post Count: 6

    Thanks everyone for your feedback.

    Just wondering also if the $100K was placed into another investment class, then down the track a property was planned (just say a date was planned), must the money be placed back into a savings account just before purchase to prove savings or can it just be proved by being in other investments? Will there be any impact to holding savings in other investment classes compared to a savings account for the loan application?

    Regards,

    Ben.

    Ben

    Young investor educating myself on property!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Hi Ben

    You could leave it in other investments but you would soon need to liquidate those so you could have the cash ready for settlement. Lenders will want to know where the funds to complete are coming from.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.