Borrowers Risk Averse

[buzzlightyear]

"Vulture" makes it sound really bad...

It was the research arm of the creative agency which came up with these names. I suspect the term is designed to convey a strong emotional response and connection to the characterisitcs of the group they were seeking to define. I think they suceeded.

 

[boods99]

It was the research arm of the creative agency which came up with these names. I suspect the term is designed to convey a strong emotional response and connection to the characterisitcs of the group they were seeking to define. I think they suceeded.

I think you are correct!

 

[boomtown]

I think the title of this thread should be:

"Kim5 Risk Averse"



Sorry Kim just giving you a hard time

 

[RumpledElf]

I guess im more conservative than some people on here, but i feel in my situation i want to have a decent sized deposit and also have a minimum of $10,000 in savings as a buffer before purchasing an ip. Each to their own. We are all different.

See, we saw what we thought was a bargain, gave the vendor an insultingly low offer, begged and grovelled to a bunch of banks until we actually found one that would lend us money (we only had equity and a little savings and don't earn much more per year than you have saved so far), and are now busily spending slightly more than 100% of our disposable income tarting up this house - which is a disaster area - while juggling a baby who refuses point blank to sleep at the other house. We're officially a metre short for subdividing the block so shortly we'll be pestering the council saying that it has a lot of merit and noone will notice that the house is on land a metre narrower than the Powers That Be say it should be. I'm not going to take no for an answer on the subdivision.

A little (ok, a lot) risky yes, as we are now utterly bufferless and will need to lend more for the subdivision fees, but we're talking such small figures here you could have done what we are doing and barely scratched your deposit. The few $1000 we are spending on renovating will return us around $20-50pw from rent (+ve gearing) and $70,000 in that magic equity stuff which we can then use to build a second house and get even more rent and/or equity, which is why I'm quite happy with the risk. We borrowed over 100% of the house value so nothing down upfront. Hopefully we'll come out of this with one of those rags-to-riches stories people like to hold up as examples.

Just buy something cheap for your first IP so its not so scarey. Heck, your deposit is almost big enough to buy an entire house upfront in some locations.

 

[Alex P Keaton]

Just buy something cheap for your first IP so its not so scarey. Heck, your deposit is almost big enough to buy an entire house upfront in some locations.

I think I got into a one track mind of buying a cheap 1 bed for under $220 K but then realised most of them are under the 50 sqm which means that banks require a 20% deposit to finance it. That means a $44 K deposit then still have enough money to pay for all other costs and leave enough for savings.

Hmmm maybe i need to re-evaluate my strategy and try to buy something 50-60sqm in size for about $230 - $250 K then I can could put a smaller deposit down such as $25 K and just service a higher loan. That way I could buy a lot sooner. Thats the main thing that is holding me back is my savings. If I for instance were to buy an ip in 3 months time which i would much prefer to do, i would have about $50 K saved. The remaining $25 K can go towards the other costs, and i can stay with my parents for a further 6 months to build a bit more of a buffer before moving out and renting somewhere.

I had to cancel mb yesterday i have a nasty cold. i will be more clear about my plans next week after appointment.