No equity start



From: Rasputin .

Hi there again ,been away awhile, but I am back now. I paid of a few bad debts as advised , but stil lhave no equity, is there anyone out there who knows how I can get a 100% loan no equity ... I asked this before but didnt get any concrete ansers as to who to goto , everyone (bank or Mortgage brokrs I tried tell me to come back when I have equity, but i realy dont want to wait much longer to start building my IP portfolio
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Reply: 1
From: Rasputin .

oh forgot to mention to those that dont know. i am in Brisbane
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Reply: 2
From: GoAnna !

Hi Raspution

Sounds like you've made heaps of progress. Way to go!

Are you on a reasonable income? If you had equity how much would a bank lend you?

It may be that someone else out there has equity but no serviceability. Together you could purchase something. If it is a quick cosmetic reno or something like then you could sell and each take your cut.

What ideas have you had?

GoAnna !
Why not go out on a limb, that's where all the fruit is. (Mark Twain)
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Reply: 2.1
From: Rasputin .

thanks anna..

i ma on a very good income and can now service debt very well. ( i think) have been to a finacial planner , but he was more interested in me buying into a managed fund with a monthly amount . I figure i would be better off using that monthly amount to get a IP ...

I not sure if any one i know has free equity either, i guess most of them would be using it for their own IP portfolio ..

Which is why i wondered if any financial lender would let you get a loan with no equity no deposit ...
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Reply: 2.1.1
From: Robert Forward

Hi Ras.

Good to see you back. And with good news of ousting those debts. A question for you, how much cash do you currently have. You will only need $6-10k to get into your first IP. My last purchase I put in $8k cash and took a 95% P&I loan from NAB. So you can get in cheaply enough.

If you don't have that amount save it asap. Have you invested in The Wifes Budget Book yet?

I used it to set my personal budget into check. I spend 70% on my income on living expenses, 20% is saved for investments (and don't dip into this amount), and 10% is saved as straight cash for a rainy/emergency day.

Have just worked out that I can now borrow up to $500k, so I'm going on a spending spree. And only on well priced properties though.

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Reply: 2.2
From: Rasputin .

no to the FHBG , already living in my own home

got a few options that just landed on my desk too, will post back here when they work themsleves out....

But in the meantime can anyone recommend a good mortgage broker in brisbane??
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Reply: 2.2.1
From: Glenn M


Just had a about obtaining a personal loan from a lender. Next stage is to go to another lender and use this money as a deposit for an Investment Property (just say that you already have the required deposit with another bank).

The final stage is to pay off the personal loan as soon as possible (see it as a way of forced savings). At least this will get you into the 'game' so much quicker than sitting and waiting to build up the necessary deposit yourself.

The only potential problem I can foresee with this plan is Mortgage Insurance (depending how much you borrow)as they normally requires evidence of a savings history.

I think I'm 99% of the way here with a plan for Rasputin. Is there anybody out there that knows a way of getting around the Mortgage Insurance problem?

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Reply: 3
From: Victor Mann

there are some lenders i deal with that will fund 90% and let u borrow 10% as personal loan as long as you can service 100% debt.

No loading on rate either.

victor(the broker )Mann

Good hunting!!!!!!!!!
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Reply: 2.3
From: Cameron James

<Follow some of TW's threads from the
old forum. She discusses buying at a big
discount to the market, getting it valued at
market, having the 80% LVR be payment
in full, hey presto instant equity. Might be
a little harder in your "hot" market - but still

I was wondering about that... The
possibility of getting banks to use the
valuation over the purchase price. With
just 10% equity you could add value to the
property and turn it into a positive geared
investment. Or, if you could invest that
10% somewhere that is getting returns
above the cost of that money (eg. $20 000
@ 7% invested elswhere returning 12-
15% or more) that would help the IP
stand alone as an investment.

I'm going to dig around in this forum for
some more info.

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