Hi Guys, I am 26 yr old accountant from Sydney and would like to get in to property investment..With yearly Salary of around $55kplus (no depedent) just wondering if I can get started in to the PI with minimum initial investment...also need to know if there are good education pro gramme to help people like me, Many Thanks,
It depends on where you are comfortable buying. If you want a large house on the lower north shore, you will probably find it a bit difficult on those kinds of wages. However, a small unit is possible, or else look to large regional centres or to the other capital cities and you should find something within your price range. First step is to start saving - you will need a sizeable deposit to be able to buy a property. If you can't save, then you will probably struggle to meet the repayments too, so this is an important skill to master. As for education, there are plenty of great books around which explain how property investing works. Have a read through the forums here, we've had plenty of discussions about books and other recommended resources. If you have any questions - just ask!
There are a number of companies that offer mentoring/education programs specific to the property investing arena. Often mentioned is that the dollars spent in educating yourself pays over many times. It should be possible to obtain a loan with an gross income of $55k with a minimum of around 9% (5% for deposit and up to 4% for costs, depending on your state you live in) as a deposit to purchase an residential property. I have had clients take advantage of the FHOG to assist with the deposit, live in it for 6 months then convert this to an IP. They may also get stamp duty concessions as a first home buyer. If you are going for a high loan to value ratio (LVR) loan, lenders have 'decided' that for first home buyers these are higher risk loans and are scrutinising these more heavily than they have in the past. They will want to see that your periodic savings (almost mandatory 5% genuine savings over at least 3 months evidence) and your current rent you pay is at least equal to the mortgage repayment - showing you can service the loan without hardship. Otherwise do as Sim suggests, save hard for at least 3 months so you can demonstrate you are capable of repaying loan. Good luck Greg
So, if I am going to get a loan for $600K, I would need to have at least $30k in in savings for at least 3 months. That's tough. Would the chances of having my loan approved be lessened if I will be a a sole lender and earning just under $90k pa? I'm a first time home buyer. TIA.
Hi Jett You don't need to save $30K in 3 mths- it's not about the timing but the amount that you can save that will determine your capability for a loan as well as your serviceability by the lenders. Speak to a good broker about your options here. Also note that you may well qualify for the FHOG on a $600K purchase but will have to pay full stamp duty. Exemptions for stamp duty are up to $500K only and then are on a sliding scale until $600K, by which point you're paying full stamps. Read more here: First Home Plus - NSW Office of State Revenue
