Taking a critical look at the current debt structure and see how much cash flow is absorbed through personal loan and credit card debts due to the high interest rates associated with this type of debt.
Consolidating these debts into a housing loan (if you have sufficient equity) at housing loan interest rates. This will free up your cash flow to give you additional funds to contribute to the repayments of an investment property, and to create sufficient borrowing capacity to purchase an investment property.
Using a cash deposit
If you are a first time investor and do not own any other property to leverage from then you will need a cash deposit. Many investors sell shares to invest in property while others save for a cash deposit. You will require, approximately 5% to 10% as a cash deposit depending on the property you choose and the lender used. At least 5% of the deposit must be genuine savings over a 6 month period.
Purchase using your Self Managed Super Fund
For over 23 years we've been helping average Australians from all walks of life take control of their lives by building wealth through property.
Some clients are planning for retirement, some a nest egg for the kids, leverage for business ventures, young couples getting a foot in the door- with future plans to travel, trade up or establish a strong financial basis before starting a family.
The best investment you can make in your future is to invest in residential property. It's time to move from 'procrastination plan' to 'investment plan'.
How To Get Started – Using Equity
Leveraging against existing equity in your own home can provide:
The means to acquire a deposit for property purchases
Provide sufficient funds for the purchase of the property including all costs
Current debt minus the value of your home = Equity.
Banks will lend up to 90% of the equity towards the cost of an investment property.
Effectively the tax office and the tenant repay the majority of your loan repayment commitment. Consider forfeiting one or two take away meals a week and a property could be yours!
You may be able to purchase property in your Self Managed Super Fund. In recent times changes to legislation have allowed Self Managed Super Funds to borrow up to 80% of the cost (or valuation whichever is the lower). The borrowing capacity of the fund is based on the earnings of the fund.
Take the first step
Our team is here to help and guide you through the process. Why not invest ten minutes of your time to call for a borrowing capacity check Freecall 1800 800 775 or you may choose to complete our online form to have your borrowing capacity assessed. You may be in a position to invest now. It is never too late to start building wealth.
Simply contact us by phone or email for obligation free advice on the safest and easiest way to invest in property.
We'll answer all your questions on property investing and on how OzInvest help build wealth for our clients.
Having done this with such success over the years, today over 60% of our business is repeat business from existing clients or word of mouth referrals. Read more about how to build a property portfolio.
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