Ok, I've found this week's deal of the decade. Asking $140k renting for $315 per week. I gotta nab this property, man! Trouble is, my only asset is about $12 000 in equity and I start a new job next week. Who will lend me money? I don't want an investing partner, but just a financier. What do you recomend?? I'll do anything!!!!!!!!
I need $140k - fast!!
- Thread starter hobgoblin
- Start date
hob art
Property is a patience game grasshopper
You are very anxious to achieve some very particular goals.
I can understand the goals.
But what about the asset? Is it in an area where you could get cap growth?
Cashflow is a short term thing, which may not get you results in the long term?
Where is the property? (secret if you want- that's cool). What's the rental prospects? You don't want to get caught with a property with high vacancies. Management fees? Probelms about looking after the property?
Sorry, I don't want to be too negative.
But a property like that, with returns like that, in today's market, rings a few bells. I'd tread carefully.
If it's a winner, then go for it- with everything you've got.
Just make d***d sure it really is a winner.
Property is a patience game grasshopper
You are very anxious to achieve some very particular goals.
I can understand the goals.
But what about the asset? Is it in an area where you could get cap growth?
Cashflow is a short term thing, which may not get you results in the long term?
Where is the property? (secret if you want- that's cool). What's the rental prospects? You don't want to get caught with a property with high vacancies. Management fees? Probelms about looking after the property?
Sorry, I don't want to be too negative.
But a property like that, with returns like that, in today's market, rings a few bells. I'd tread carefully.
If it's a winner, then go for it- with everything you've got.
Just make d***d sure it really is a winner.
Hi
Im not sure if this will fly or not, is just a thought.
Get an unsecured personal loan to use as a deposit, then negotiate as long as settlement as you possibly can. During this time advertise in the paper finance wanted at 10-15% or watever. 3months into your new job you should qualify for a bank loan at say 6% or so, and payout the other guy.
The other way to go is either a no-doc loan or getting the vendor to finance part of it for you. I've looked into this myself (my income is crap atm), and have been told that i could still lend at 90% LVR, just that it wont get much cheaper than 9.5%. I havent seen any deals yet that justify such a high expense.
Dont let this one deal bother you, if you keep your eyes open the deal of a lifetime should come past monthly
-My Take
Dave
Im not sure if this will fly or not, is just a thought.
Get an unsecured personal loan to use as a deposit, then negotiate as long as settlement as you possibly can. During this time advertise in the paper finance wanted at 10-15% or watever. 3months into your new job you should qualify for a bank loan at say 6% or so, and payout the other guy.
The other way to go is either a no-doc loan or getting the vendor to finance part of it for you. I've looked into this myself (my income is crap atm), and have been told that i could still lend at 90% LVR, just that it wont get much cheaper than 9.5%. I havent seen any deals yet that justify such a high expense.
Dont let this one deal bother you, if you keep your eyes open the deal of a lifetime should come past monthly
-My Take
Dave
This property is in a town where I spent some of my childhood. I have reliable information that good quality rental props are at a premium in this place, as the only places to rent are dogs, and being a mining town, there are renters galore! As to capital growth, according to RP Data, the vendor bought the property in 1996 for $60 000 less than current asking price. Funny to compare that to the prop I just bought in inner Sydney which experienced a negative capital growth over the same time period!I am of course seeking proof of rental return before going further with this one, but the agent can't provide me with leases as the property is managed by the owner. But of course, being the little slueth that I am, I have the vendor's phone number
Hi Hob
Well scored.
A few small points on "growth" in mining areas.
Im a geologist by background :O), many of our prime areas for rental in mining towns are so because the population is itinerant.
As the ore bodies in some places like Broken Hill, Mt Isa, Cobar, kal etc start to dry up, one needs to carefully assess as to whether the service centre aspect of these towns will keep them afloat.
In the middle to long term one may end up with an unsaleable product that is cosuming lots of rates.
The growth for that particular property may well be just normal organic growth, but I suspect its largely due to the rental rtn.
ta
rolf
Well scored.
A few small points on "growth" in mining areas.
Im a geologist by background :O), many of our prime areas for rental in mining towns are so because the population is itinerant.
As the ore bodies in some places like Broken Hill, Mt Isa, Cobar, kal etc start to dry up, one needs to carefully assess as to whether the service centre aspect of these towns will keep them afloat.
In the middle to long term one may end up with an unsaleable product that is cosuming lots of rates.
The growth for that particular property may well be just normal organic growth, but I suspect its largely due to the rental rtn.
ta
rolf
If you've stacked it all up Hob's and you still feel that its a great deal, i think Homeside have a feature in their lending where they do 90/10 deals. So basically, they will lend you 90% and the 10% can be a non-refundable gift, personal loan...although the downside on this is that with lending mortgage insurance you'd be looking at a slightly higher premium on this this type of borrowing. The issue regarding your new job could be overlooked if your new job is within the same industry/ same type of responsibilities, ie: taken the job on for greater opportunities/income and "no probationary" period applies. Also, it would depend on the location of the property whether their morgtage insurer would want to take it on. All the best with it Hob.
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