Am I in a position to be buying?

[RedStar]

I'm starting to think about whether I should be looking into either an IP or a PPOR.

I got pointed in the direction of this forum a couple of weeks ago and have been busy reading lots (and lots) of stuff.

Was curious as to what kind of position I am in as regards to financing / purchasing a PPOR or IP?

I guess a brief overview of my personal situation:

Age: 30
Marital Status: Single

Savings: $80,000
Assets: $50,000
Debts: $0

For a PPOR; ideally somewhere central/northen fringe of Melbourne.

I work in IT, am highly skilled, but do contract work, will this be negatively viewed from a lenders viewpoint? (I can easily show solid income and savings.)

Flip side of the above is that I do earn decent money, working on a day rate, and at the moment am booked solid until July.

Sorry, not really sure what to write... Just not sure what kind of position I am in (If that makes sense?) So was curious as to if I am in a bad/average/good position?

 

[Perchy]

I work in IT, am highly skilled, but do contract work, will this be negatively viewed from a lenders viewpoint? (I can easily show solid income and savings.)

I guess its down to the Banks how much they willing to lend, but 80K deposit would definately make you look good.

Whenever I go for a loan, since majority of my employment was around the 1 year mark, they always ask what Industry..I say IT - they just go 'oh that explains it'...

 

[Bon]

You just need to be able to service the debt. Ask yourself whether you can service 8.5% on xx amount of money, and whether it be P&I, or IO.

 

[the_captain]

I'd also do some calcs at a 12% interest rate and possibly higher, so that you "know" at what point you can no longer service the debt.

 

[grossreal]

hi
like me or hate me you will need to read my posts to understand so don't worry about your posts.
first serviceability is not an issue if you buy in a new company and trust structure if you can deposit the first 12 months of interest up front.
so work on your figure on this.
next do a full business plan of what you want to achieve and a time line to do it.
next talk to a couple of brokers there are a few floating around here to find out your lending capacity.
and the structure you want to invest in they are all different and if you have read a few of my post you will see that this is like suit there is no one size fits all
they either don't fit right or fall off you so get one made to measure same with a structure
next find an area you find interesting.
gold miners don't just dig anywhere they research find an area do test etc you need to do the same.
once you have your research go and start to bargain and thats the fun part.
and sorry can't tell you how to do that as its a bit of a trade secret.
but good luck
silly saying as you don't need luck you need knowledge

 

[vbplease]

I'm starting to think about whether I should be looking into either an IP or a PPOR.

The first thing you should establish is your end goal. Is this house just a PPOR and nothing else, or one of a few IP's to come?
This should dictate what sort of loan you want and where you can get it.