A point in the starting direction please

G'day All,

For a good 8 months now, when i can, i've been browsing on Property chat along with listening to Michael Yardney pod casts and i feel i'm certainly understanding bits and pieces once I've started up.

The issue i have IS starting up.

Im Single and i work in the film industry so i dont have the most solid income, tho i can save when i have a decent flow of jobs however that shortly goes to Life and supporting myself while out of work, (Rent, Bills, living and most recently had to shell out for a car) So any money i get, always begins to dwindle making it seemingly a struggle to begin saving for any particular required loan which always seems to be 30k - 50k on any calculator.

Im looking to start off buying something smallish in an ok area to renovate up and re-sell, or if the area is good...simply rent it out.

But how do i start when i can never get a deposit going?

One mate that has been in it for a while now once said to me that i dont need ANY money of my own. That with the right broker (plus a decent Property manager) can lend me the full property value plus some extra to use towards renovating costs plus a little bit extra for paying back the loan incase i initially fall through on payments for the first bit of it such as the time im renovating and it isn't tenanted. (He may have been talking about LMI? and basically very high interest rates)

Is there any truth to that? Otherwise what suggestions can you offer for someone in my position thats starting from a day to day living status...where is that first step financially to get going?

Thanks to repliers.

 

Hi @TrueAussie

You will need a deposit, and lenders will not lend for renos - until you go for a borrowing after settlement, and the bank will value the property post the renos.

In your scenario you may need to use your taxable income - lower of the last 2 years to be conservative - especially as you suggest the income is flakey.

There are LMI waiver available for Media personnel - but again depends on your specific scenario.

 

Fact is not everyone can afford to buy. Or keep.

 

There was some truth to this - but that was a few years ago and sadly those times are long gone, in the current credit environment.

Id' suggest you invest in the share market and try to build up a deposit that way. It is low cost of entry and exit (unlike housing) and you can invest in shares sporadically as your cash flows permit. Either way, you are going to need a deposit for a housing loan.

 

Thanks for the Replies everyone, gives some food for thought.

 

Can you get yourself a second job? Start some kind of side business? Just so you can get a more reliable form of income.