In NT a person can own as many IP's as they like and still claim the FHOG, but if you have a partner and they live with you, they cannot claim the grant later on.
Sleepless without IP...
- Thread starter happy
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In NT a person can own as many IP's as they like and still claim the FHOG, but if you have a partner and they live with you, they cannot claim the grant later on.
I'm also wondering how far the government would look into things. If my husband and I did get seperated/divorced, do we need to prove that we are seperated, i.e. live seperately for a certain time etc? If that's the case, it wouldn't work.
Also, and I know this is very cheeky..... would there be anyone one here who would be interested in helping us get started? i.e. going guarantor or helping with the fees and deposit in some way. Maybe offering a loan which could be paid back when the property grows in value and equity can be taken out. Wow, even as I type this I think I'm crazy asking! But if you dont ask....
Also, and I know this is very cheeky..... would there be anyone one here who would be interested in helping us get started? i.e. going guarantor or helping with the fees and deposit in some way. Maybe offering a loan which could be paid back when the property grows in value and equity can be taken out. Wow, even as I type this I think I'm crazy asking! But if you dont ask....
Happy, I'm confused! 
You said earlier (words to the effect ) that you are good with repaying loans, just not good at saving. Surely being disciplined and diligent at saving a deposit, stamp duties loan fees of 14-15k would be a preferable alternative as opposed to going through a divorce just to make an i.p a reality?
Sorry, I just don't get your angle...
If you state that your not good enough at saving then why would an investor want to go guarantor for you?
Just letting you know how your post comes accross. Please feel free to correct my view if I have this all wrong.
You said earlier (words to the effect ) that you are good with repaying loans, just not good at saving. Surely being disciplined and diligent at saving a deposit, stamp duties loan fees of 14-15k would be a preferable alternative as opposed to going through a divorce just to make an i.p a reality?
Sorry, I just don't get your angle...
If you state that your not good enough at saving then why would an investor want to go guarantor for you?
Just letting you know how your post comes accross. Please feel free to correct my view if I have this all wrong.
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Just wondering, how much have you saved so far, you've been posting here since April 2007, I notice? Surely if servicability is not going to be hard for you and you are committed to making this happen, you must be almost there?
G'day Silversands,
Thanks for your reply. I knew asking for a guarantor would be risky! I have been posting for a while, nearly 2 years I think. And my husband and I have been interested in investing in property for the same time however, it is only now that we are in a position to be able to service a loan. The budget has been very tight since my daughter was born, with only one low wage. And we couldn't save in this time, we could barely meet our committments. But now my husband has got a great government job, secure, and with subsidised rent from January, so we are keen to get started on our investing journey. We have worked out that from January, we will have approximately $350 per fortnight extra that we can put towards a mortgage. To save the 17K for deposit and fees (needed for 150K property) would take us appoximately 98 weeks. We just feel that, if we could use OPM, i.e bank, we can get on the property ladder 2 years sooner.
Obviously, after we have exhausted all other avenues for raising the money, we will just have to save and wait the 2 years.
I have so much respect for the successful investors on here. I guess I thought, between you all, someone may come up with a grand plan to get us into property sooner than 2 years. If the majority of you say we have to go the hard yards and save for 2 years, then thats what we will do.
Thanks for your interest and guidance.
Thanks for your reply. I knew asking for a guarantor would be risky! I have been posting for a while, nearly 2 years I think. And my husband and I have been interested in investing in property for the same time however, it is only now that we are in a position to be able to service a loan. The budget has been very tight since my daughter was born, with only one low wage. And we couldn't save in this time, we could barely meet our committments. But now my husband has got a great government job, secure, and with subsidised rent from January, so we are keen to get started on our investing journey. We have worked out that from January, we will have approximately $350 per fortnight extra that we can put towards a mortgage. To save the 17K for deposit and fees (needed for 150K property) would take us appoximately 98 weeks. We just feel that, if we could use OPM, i.e bank, we can get on the property ladder 2 years sooner.
Obviously, after we have exhausted all other avenues for raising the money, we will just have to save and wait the 2 years.
I have so much respect for the successful investors on here. I guess I thought, between you all, someone may come up with a grand plan to get us into property sooner than 2 years. If the majority of you say we have to go the hard yards and save for 2 years, then thats what we will do.
Thanks for your interest and guidance.
ok.
That makes more sense
I would be thinking a personal loan could solve your problem, or even put any large purchases on credit card for a while, even groceries petrol etc and then find a 12 month balance 0%( or sub6% ) transfer offer to move the balance to - in order to come up with some of the cash. Risky if you are not disciplined though.
All the best
That makes more sense
I would be thinking a personal loan could solve your problem, or even put any large purchases on credit card for a while, even groceries petrol etc and then find a 12 month balance 0%( or sub6% ) transfer offer to move the balance to - in order to come up with some of the cash. Risky if you are not disciplined though.
All the best
I don't believe you need to prove it but it's still illegal. You are knowingly giving a false declaration. Is it worth the penalties if caught out.
My parents used to have a couple living next door with 3 kids. the guy used to come and go 3-4 times a week. It then became knowledge that the woman was claiming a single mothers pension as they had divorced. H ehad another place that he lived in for 3-4 nights and then spent the rest of the time with her. It wasn't long after that my parents noted a car parked in the side street on a fairly regular basis. Cut a long story short (and to save my 2 fingers from getting exhausted) a "friend" of the woman had dobbed her/them in and a PI had been monitoring their movements.
You may think "what sort of friend would dob her in?". I say thanks for saving me as a taxpayer 1000's of dollars. They had duped the gov't out over time of over $50k with the intent of much more.
Personally I'd also suggest any ideas you have in regards to something like this be kept out of a public forum. Big Brother may be watching.
If servicing isn't an issue at all then grab yourself a PLA for 5% plus costs(unless family can assist) then proceed from there (ensure wth a MB that you can in fact service PLA & HL)
Regards
Steve
**disclaimer......any typographical errors are the fault of the left and/or forefinger. The holder of the said fingers hasn't managed to master spellcheck on this platform and is too stuborn to take typing lessons, much to his detriment
don't do this!
150K over 30 years IO @7.5% is around $430 per fortnight, less rental income of around $300 per fortnight (worst case) = $130 out of pocket per fortnight.
Is this right?
Hubby and I are becoming increasingly down about this whole investing thing. Everytime we get serious and try to make plans to go ahead, fear and indicision get in the way. Maybe we're just not cut out to do this sort of stuff...... or maybe we're thinking about everything way too much. We see low income earners buying property all the time - and we think why cant we?
My suggestion is to firstly see a mortgage broker to discuss your exact financial details and see where you stand in relation to getting a loan. My son started out 4 years ago with 100% loans, not sure if they are still available. He had a very high income but no savings.
Once you know exactly where you stand regarding a loan, then it is down to saving every cent you can to make up any deposit required.
Don't get hung up on the fact that it will take "2 years" (for example). Look at it this way - in 2 years time, you will be either simply two years older, or maybe two years older WITH a deposit for an IP or a house. Which would you prefer?
Don't give up before you start.
Marg
Once you know exactly where you stand regarding a loan, then it is down to saving every cent you can to make up any deposit required.
Don't get hung up on the fact that it will take "2 years" (for example). Look at it this way - in 2 years time, you will be either simply two years older, or maybe two years older WITH a deposit for an IP or a house. Which would you prefer?
Don't give up before you start.
Marg
ok, so you have $350 spare a fortnight, to be honest this isnt a lot. $150k at say 7% IO is $433 a fortnight, so you cannot service the loan if there is no tenant, this is what i would be looking at.
From the banks point of view, if you can't save, and have no savings, what happens if you don;t have a tennant?
Also don't forget to add in the other costs, water connections, insurance, body corp if you have it, rates. I have a $185k place and this amounts to about 1% a year. so that is an extra $1,500 a year for you, or $58 a fortnight.
So add that onto the $430/fortnight for the loan and you are nearing $500 a fortnight.
So ($430 + $58) * 26 = $12,688 a year in costs
Income of $150/week less 7.7% agent fee, 2 weeks letting and 2 weeks vacancy:
($150 *2 * (1 - 0.077)) * 26 = $7,199
So you need to cover $12,688 - $7,199 = $5,489 a year or $211 a fortnight.
Then we need to consider that servicability (as far as i know) is done on P&I loans mostly, as with a bank loan IO only lasts about 10 years. so add on another 1.3% repayment (what my P&I works out too) a year which adds another $74 to the loan, taking it to $285 a fortnight you need to fund.
Sorry to be nasty, just trying to present it from the banks point of view. Their calculator tells them you need a minimum of $285 a fortnight as shortfall on the loan, and you say you can save $350 a fortnight but with no history of it and no backup savings in the bank.
It is possible, but you may need something behind you, or some collateral elsewhere.
Is it possible to earn some more money? Even earning another $350/fortnight which wouldnt be too difficult will cut your savings time in half.
There was a thread around for how to earn extra money - anyone have a link?
Ben
From the banks point of view, if you can't save, and have no savings, what happens if you don;t have a tennant?
Also don't forget to add in the other costs, water connections, insurance, body corp if you have it, rates. I have a $185k place and this amounts to about 1% a year. so that is an extra $1,500 a year for you, or $58 a fortnight.
So add that onto the $430/fortnight for the loan and you are nearing $500 a fortnight.
So ($430 + $58) * 26 = $12,688 a year in costs
Income of $150/week less 7.7% agent fee, 2 weeks letting and 2 weeks vacancy:
($150 *2 * (1 - 0.077)) * 26 = $7,199
So you need to cover $12,688 - $7,199 = $5,489 a year or $211 a fortnight.
Then we need to consider that servicability (as far as i know) is done on P&I loans mostly, as with a bank loan IO only lasts about 10 years. so add on another 1.3% repayment (what my P&I works out too) a year which adds another $74 to the loan, taking it to $285 a fortnight you need to fund.
Sorry to be nasty, just trying to present it from the banks point of view. Their calculator tells them you need a minimum of $285 a fortnight as shortfall on the loan, and you say you can save $350 a fortnight but with no history of it and no backup savings in the bank.
It is possible, but you may need something behind you, or some collateral elsewhere.
Is it possible to earn some more money? Even earning another $350/fortnight which wouldnt be too difficult will cut your savings time in half.
There was a thread around for how to earn extra money - anyone have a link?
Ben
Commonsense says to save but i would rather start quicker by using other peoples money...somehow
I would personally lose sleep if you went against your common sense.
So here is the question I would like to see answered by you before prceeding on a 107% LVR project - what are the risks you foresee doing this (compared to an 80% LVR project)?
Cheers,
The Y-man
The risks are big - we understand. The property value could go down, so we owe more than what the property is worth. If, for some reason, we defult on the mortgage, we're stuck with a loan and no house.
I guess we were weighing this up with the risk of doing nothing for the next two years... not realising potential capital gain and being priced out of the market, and never investing because we cant get a foot in the door - that's what I'm scared of. And ending up like our parents...too scared to do anything with their money and retiring on the government pension. We dont want this future.
We feel a sense of urgency to get into the market, we dont want to miss out. Family members and friends are buying property, that are in similar financial situation to us and we are feeling left behind. I'm 32 and feel if we dont get started soon, we will be too old to enjoy our financial freedom, when it happens.
Tell me, are we crazy to be feeling this way? Will another 2 years make that much of a difference that we should venture into a risky 107% leverage loan now?
Thanks for your help.
I guess we were weighing this up with the risk of doing nothing for the next two years... not realising potential capital gain and being priced out of the market, and never investing because we cant get a foot in the door - that's what I'm scared of. And ending up like our parents...too scared to do anything with their money and retiring on the government pension. We dont want this future.
We feel a sense of urgency to get into the market, we dont want to miss out. Family members and friends are buying property, that are in similar financial situation to us and we are feeling left behind. I'm 32 and feel if we dont get started soon, we will be too old to enjoy our financial freedom, when it happens.
Tell me, are we crazy to be feeling this way? Will another 2 years make that much of a difference that we should venture into a risky 107% leverage loan now?
Thanks for your help.
ok, slow down slow down.
say you get in today, in the next 12 months you will most likely see no gain, the economy is going no-where fast. maybe some gain the year after - lets say 10% max. So that is $15k over the next two years in CG.
So if you buy now the upside is $15k whereas buying and holding for those 2 years will cost you $211 a fortnight - or $11k over two years.
So you will potentially only be $4k better off - not worth the stress plus the extra interest on a $20k personal loan/credit card.
You have just got yourself into a better financial situation. my recommendation is to save save save. work a second job, aim small - for the first $5k in savings, you will enjoy watching it grow, trust me. then move to $10k, then $20k. once at $20k start looking for a place while you keep saving, buy a place and you are still saving.
what is your work situation like? do you both work?
say you get in today, in the next 12 months you will most likely see no gain, the economy is going no-where fast. maybe some gain the year after - lets say 10% max. So that is $15k over the next two years in CG.
So if you buy now the upside is $15k whereas buying and holding for those 2 years will cost you $211 a fortnight - or $11k over two years.
So you will potentially only be $4k better off - not worth the stress plus the extra interest on a $20k personal loan/credit card.
You have just got yourself into a better financial situation. my recommendation is to save save save. work a second job, aim small - for the first $5k in savings, you will enjoy watching it grow, trust me. then move to $10k, then $20k. once at $20k start looking for a place while you keep saving, buy a place and you are still saving.
what is your work situation like? do you both work?
We are now leaning towards saving for a few years. Thanks for everyones advice. My husband works and I dont at the moment but I'm thinking I'd better get a part time job and put my daughter in childcare. I didn't want to have to do that because she is still so young but I guess 15 hrs or so a week would not hurt her.
Hi again Happy,
Maybe contact centrelink first to see how your income might affect parenting payments or family tax benefits. In some peoples cases working only a few hours a week isn't worth it. For others it is. It will depend on your hubby's yearly income combined with yours. Not a big deal if you want to work but worth considering if you are going back grudgingly.
Regards Jo
Maybe contact centrelink first to see how your income might affect parenting payments or family tax benefits. In some peoples cases working only a few hours a week isn't worth it. For others it is. It will depend on your hubby's yearly income combined with yours. Not a big deal if you want to work but worth considering if you are going back grudgingly.
Regards Jo
My view is that unemployment may be the biggest risk yet on the horizon.
Loss of job = loss of ability to pay loan = loss of IP.
Further, please understand this: Your property does NOT have to go down in value for you to owe more than the property is worth - because you borrowed MORE than the property is worth in the first place (7% more remember?)
So, bank then firesales IP, still a chunk of money owing, next they come for your Home.
Sell you Home at a bargain price, you need to now find somewhere to live....
Cheers,
THe Y-man
