Advise - do I have enough money to start out with my first IP?

Hi everyone !

Ive posted here a few times. My boyfriend and I pretty much feel ready to go for our first IP. Weve paid off our credit card debt but I do still have car payments for 2 more years.

My question is this - do any of you experts/regulars think that $30,000 will be enough money down to buy our first property, a townhouse that is $300,000? . $30,000 is what we currently have.

My boyfriend and I both have good jobs (both 6 1/2 years at the same place of employment). Our credit is fine. Together we earn just over $100,000.
We live with our parents (no rent). The townhouse will rent out for approx $340 per week. We would rent it out for a year or two and then probably move in, and hopefully look for another IP. We are not eligible for the FHBG.

I am pretty sure we need more money but Im getting impatient, and getting worried prices will start rising.

Any honest advise is most welcome. We thank you in advance, Shopgirl
 
I'm paying of a PPOR for $305,000 by myself, on $50,000 (after tax). So I am sure you can afford it with $100,000 + rent! :)

But it would come down to budgeting, not everyone can live on a low amount for groceries...I might be able to survive on $50 a week groceries, but you might want $130 a week plus go out every second night...

Check out the spreadsheets thread and get a budget (or get one of the many on the net elsewhere) You will be suprised at all the little things you don't think of when you go at the end of the week "yeah I save $300 a week" then forget electricity/phone/cars etc
Cheers
Chris
 
Hi SG

It may be possible with a 95 % loan with capitalised mortgage insurance.

Finding such a lender isnt easy, but not impossible either

ta
rolf
 
Hi shopgirl,

You will need a good broker for that one. Where there is a will, there is a way. Just depends on how much you want it.:)

Regards JO
 
G’Day shopgirl

Good that you are getting involved with posting to the Forum.

That’s what it is here for, and questions are contributions so fire away!

This looks to be quite straightforward.

You don’t mention which lender your credit card is/was with, or the personal loan, and some of the major banks will go to 95%LVR for existing credit facility customers.

But if your loan is with, eg, a motor vehicle finance company then there are still a few lenders which will go to 95%LVR and capitalise the mortgage insurance for non-existing customers, and do it at standard, professional or basic loan rates.

By my reckoning, your purchase is going to look something like this (sorry, can’t format the post into a neat table):


Purchase Price: $300,000
NSW Stamp Duty: $ 8,990
Transfer Fees: $190
Mortgage Registration: $95
Legal Fees: $1,000
Rates Adjustment: $750
Loan Establishment Fees: $600
Valuation Fee: $160
Sundries: $125
Mortgage Insurance: $5,437

Total Purchase & Loan Expense $17,347

Funds to Complete: $317,347

Loan to 95%LVR+LMI $290,437

Your Contribution: $26,910

Surplus: $3,090.

Monthly Interest Only payments approx $1,400


There! A property purchase and still some money left over for Christmas dinner!


You sound as if you are really champing at the bit so hope this helps

Cheers!
Kristine
 
Hi everyone !

Ive posted here a few times. My boyfriend and I pretty much feel ready to go for our first IP. Weve paid off our credit card debt but I do still have car payments for 2 more years.

My question is this - do any of you experts/regulars think that $30,000 will be enough money down to buy our first property, a townhouse that is $300,000? . $30,000 is what we currently have.

My boyfriend and I both have good jobs (both 6 1/2 years at the same place of employment). Our credit is fine. Together we earn just over $100,000.
We live with our parents (no rent). The townhouse will rent out for approx $340 per week. We would rent it out for a year or two and then probably move in, and hopefully look for another IP. We are not eligible for the FHBG.

I am pretty sure we need more money but Im getting impatient, and getting worried prices will start rising.

Any honest advise is most welcome. We thank you in advance, Shopgirl

Has the credit card been closed and who was it with? Also who is car loan with?
 
Also dont forget to budget in other expenses such as:

building inspection
pest inspection
strata fees
accounting
quantity surveyor

pm fees
water rates, shire rates
landlords insurance
income protection insurance


Extra unplanned expenses
(such as putting in air conditioning, painting, also if you cant lease it straight away you'll have to make the repayments yourself)


I may have forgotten some things. This list just came off the top of my head as im in the process of buying.

Good luck
 
Hi I Love you all! (smile)

The credit card was with Anz. I just paid it out and closed it last week. The car finance is with Toyota finance. Just over 2 years to go on that one.

To Kristine, thank you so much for those figures - makes everything so real to me. I really appreciate it. That was very kind of you.

I recently opened an account with Newcastle permanent as Ive researched and they have a good reputation. I want to establish 3 solid months savings with them and then apply for the mortgage in January.

Fingers crossed - thanks to all the sound advice, I love Somersoft..
 
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