Sleepless without IP...

[happy]

I might be dreaming, but is there any way of buying an IP with no money down and no assets?

Loan serviceability is not an issue and i'm only looking at properties in the 150k range, pay no rent and have only a small car loan.

I know traditional loans with banks won't work, but i'm hoping more learned investors on here have some ideas to get me started.

I don't want to wait years saving for a deposit, just need a headstart now.

Cheers in advance...

 

[twobobsworth]

I don't want to wait years saving for a deposit

I'm confused. If servicability isn't an issue why will it take years to save for a deposit?

 

[happy]

Truth is...not good at saving but good at paying off loan/s.

 

[happy]

Commonsense says to save but i would rather start quicker by using other peoples money...somehow

 

[Ridin-High]

bank only lend 95% 5% of 150k is 7.5k + 1.5k for legals + 4k for SD

i'd factor in 14k to get into the market of $150k shouldn't be to hard

 

[Piston Broke]

Your heading in the right direction, but it's now time you start learning how to save.

Want more heat? Put more logs in the fire.

 

[Peter_Tersteeg]

Would you qualify for the first home owners grant? That would cover the minimum funds required to settle in that price range.

 

[Nathan]

get a 20k credit card.

 

[Perp]

Definitely doable, happy. Especially in that price bracket, you should be able to do it. Your options are:

1) FHOG (as PT Bear pointed out).

2) Personal loan for $10-20K.

3) Perhaps a family member or friend would lend some cash to you at, say, 6 or 7% interest - which is probably more than they can get elsewhere at the moment.

4) Vendor finance - if you can find a vendor willing to accept, which admittedly will be difficult (IMHO).

Good luck to you, happy. You can do it!

 

[happy]

3) Perhaps a family member or friend would lend some cash to you at, say, 6 or 7% interest - which is probably more than they can get elsewhere at the moment.

We don't qualify for FHOG. The family loan sounds most likely...what is the best way to set up a loan so that it is legitamate with family, ie lawyers or the like?

 

[Perp]

The family loan sounds most likely...what is the best way to set up a loan so that it is legitamate with family, ie lawyers or the like?

I'd use a contract template. There are a number of them available on the web, but at $36, this one seems to be one of the least expensive ones.

 

[want2bewealthy]

You may find it hard to get a loan if the lender cant see a history of saving/ability to service a loan

Do the 'hard slog' once, which if you can service the loan wont be a hard slog at all, you only have to do it once, then once you have some equity in your property, you take that money you deposited back from the bank, say thanks for comin and use it again.

 

[buzzlightyear]

You may find it hard to get a loan if the lender cant see a history of saving/ability to service a loan

Do the 'hard slog' once, which if you can service the loan wont be a hard slog at all, you only have to do it once, then once you have some equity in your property, you take that money you deposited back from the bank, say thanks for comin and use it again.

It will be the mortgage insurers who will have more of the issue I suspect. Happy will be in their hands.

Not sure how the chenanigans in the finance sector over this year will affect those borrowers with minmal savings but high income. MB's will know however.

 

[Belu]

why dont you qualify for fhog? you currently have a property? can you use that as security?

 

[happy]

why dont you qualify for fhog? you currently have a property? can you use that as security?

My husband bought a property before we were married and the ex kept it in the break up...gggrrrrr...he walked away with nothing

 

[buzzlightyear]

My husband bought a property before we were married and the ex kept it in the break up...gggrrrrr...he walked away with nothing

Buy in your name only?

 

[happy]

Buy in your name only?

Apparently I still don't qualify because we are in a domestic partnership...have checked the rules on that one...

 

[Perp]

That's right; if either member of a couple has ever owned a residence - on their own or in partnership with anybody else - then neither of you can qualify for the FHOG.

I do wonder if Happy and her partner broke up (not that I'm wishing for that for you!), without Happy ever having bought a home, whether Happy would then become eligible...

 

[buzzlightyear]

That's right; if either member of a couple has ever owned a residence - on their own or in partnership with anybody else - then neither of you can qualify for the FHOG.

I do wonder if Happy and her partner broke up (not that I'm wishing for that for you!), without Happy ever having bought a home, whether Happy would then become eligible...

Just checked the SA rules for myself on your last point Tracey and this is what it says....

If I am divorced, and my previous spouse/domestic partner owned a home that I had no interest in, am I eligible for the Grant?

If you are divorced/separated, you are not required to consider the ownerships of your previous spouse/domestic partner. You will be eligible for the Grant provided that you have not had a relevant interest in a previous property and you meet all other eligibility criteria.

Happy are you guys living together at the moment?

 

[happy]

Yeah, we're renting together (soon to be heavily subsidised rent because hubby is in a government position). We're married with a two year old. We have touched on the subject of divorcing, then I buy a property in my own name (taking advantage of the FHOG) and then we re-marry. Yes, we are that desperate to get this head start!!

The only issue that I have with this is that I'm a stay at home mum - no income. Could I buy a property in my name, get the FHOG but use my husbands income for the loan?? Could this work?

Thanks for all your help so far guys.. we really appreciate it