Hello fellow OzBargainers, long time lurker, new time user.
I am currently in the market for an investment property with the goal of renting it out to slowly pay off the mortgage, (everyones plan).
Information about myself.
Currently 24.
Making 60k a year.
Save about 50% due to living with parents/gf.
I was wondering where in Melbourne, would i be able to find a decent property with decent rental yields.
Any advice or tips will be appreciated as i am still young and dumb.
Sounds like thats the best possible plan with the FHOG
Firstly you need to understand what you can afford.
$50k deposit will roughly be enough for a property in the range of $200-250k (remember additional costs etc) without having to pay for Lenders Mortgage Insurance.
Question to you is how much can you borrow?
Yeah as an investment property the banks want loan you anything unless you have 20%.
Thank you for your response,
Would it help alot more if my parents can help me out with more equity from their investment properties?
They wont help me out financially with a bigger deposit, but im sure they would help me out in that way.
Some banks will assist with the equity via guarantor to reach the 20% threshold to avoid the LVI. Try ING or Stgeorge.
However, the ability to service the loan will be dependent on your income (cashflow). So need to factor in HECS, credit cards and other liabilities
Go see a broker and discuss your options. Once you understand what you can afford then you can start narrowing down areas and properties.
How long is a piece of string ? Do your due diligence and find a place you think is worth buying in an area you are comfortable buying in.
fhog + roommate/s. move back home after 12 months.