Starting off with first IP

[inv99]

Due to the low rates, etc it has got me started thinking about getting an IP.

Through reading a lot of posts on here, there seems to be a fair bit of information about how to continue the IP process, but not much about how to start off initially.

Is the best idea to save up a 20% deposit, rent it out then wait a year or so putting savings into the IO's offset before getting the 2nd? Would that even be enough to get a 2nd loan?

How do you get from 0 properties to say 2? When you dont have equity in a PPOR? Basically what is step 1, then what is step 2.

I'm just trying to find a plan to push me over the edge and start things rolling.

 

[Propertunity]

Yep, save a 10% or 20% deposit.....buy one house.

House goes up in value, draw down deposit for IP #2 and/or save another deposit.

Repeat as necessary.

 

[inv99]

Yep, save a 10% or 20% deposit.....buy one house.

House goes up in value, draw down deposit for IP #2 and/or save another deposit.

Repeat as necessary.

So between the first and 2nd it may take a longer amount of time than between the 5th and 6th for example?

 

[Jacque]

Depends on the cap growth during the time you hold the properties. This can vary from - to + obviously

 

[Jamie_D]

You can also extend lend ratio to 95% for IP as opposed to saving 10-20%

At this stage the banks are offering high LVR's for investors however could change tomorrow

Application needs to be strong thou

 

[ARF]

I recently went from 0 to 1 IP (actually it settles in two weeks). I graduated uni a year ago with a $14k debt (all bad - car ) and saved, paid it back, and then saved a 5% deposit. Used the $14k FHOG so I plan to live in it for 6 months and either rent it out or continue living there. The plan is to save $30k over the next 18 months and start shopping for a second one.

So there's one way of doing it