Beanie Girl, Talk about thinking outside the box!
amazing! this kind of strategy sounds complicated, and perhaps risky - if I were not a good saver, but I am very disciplined. My question to you is, would the bank not see what I have done to raise this money and frown upon my loan app?
I am not so up to date with the balance transfer stuff. I realise I could swap a ccard balance to another bank for an interest free period, but could it be possible to do this 2 - 3 times on my wage?
I am a bit of a ccard rookie as well lol, only ever had one at a time - and $4000 has been the max limit I have ever asked for. So maybe this is a silly question
Thanks Beanie Girl!
Hiya Rookie,
My suggestion about the credit cards was simply to get you have to have a bigger deposit sooner rather than later should you see your dream property IP, as you said you were moving into a granny flat at your parents property.
But Rixter is right, have you thought through your strategy of investing and why you want to invest? What would you like to get out of investing?
Would you like a PPOR first or an IP first? Why?
Some on Somersoft will say, 'Buy the IP, buy as many IPs as you can' (tip of the hat of respect to alexlee here
)
But if your goal is security for you and your 2 littlies, maybe working towards a PPOR is right for you at this time of your life. There is no capital gains tax to be paid when you sell a PPOR.
On the other hand, if your parents are going to leave their home to you, then that may eventually be your PPOR and you may be looking for an IP now whilst still in stable, paid permanent work - before you no longer qualify or is out of your reach.
Will you be applying for a loan from the same bank that you do your banking and savings with?
I bought 2 IPs at the end of last year, from a different lender than my bank. A 90% loan with LMI. I went with a non-bank lender because of the special IO rates they were having, 4.64% on one IP and I think 4.52% on the other.
On the first occasion, they asked for 2 months of payg slip and just a bank statement showing that I had enough money for the 10% deposit.
For the second IP, besides the 2 months payg slip, they wanted 2 months bank statement.
I am not sure if applying for 2 credit card balance transfers will have any effect on your credit file or any home loan application. I am trying to check this out but I hope other somersofters who have knowledge can answer this question. I think, but I am not sure, that a credit check stays on your file for 1-2 months then disappears from view of credit checking agencies.
I know it is possible to get 2-3 balance transfers done to your credit card without having to cancel your credit card.
I have applied for and gotten 5 balance transfers before in the space of 1-2 week period. I requested all the monies to be transferred to the same Visa credit card (had very little owing on it), then transferred each tranche of money as it came through on the Visa credit card, into the best interest bearing bank account. I still have the same Visa credit card today
All the balance transfers were done smoothly and I enjoyed the increased interest on my bank account for the duration of the 0% interest free period of the 5 credit cards. I kept all the credit cards aside, paid the minimum sum each month on the due date then cancelled each card when the interest free period came to an end.
Hope sharing my experience helps