Buy residential house with $250k

Discussion in 'Introductions' started by EthanN, 6th Jun, 2019.

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  1. EthanN

    EthanN New Member

    Joined:
    6th Jun, 2019
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    Location:
    Sydney
    Hi guys,

    I just started doing some research abt PI 3 weeks ago while on maternity leave, and I never thought I could buy an IP coz we still pay mortgage but apparently I think we can :)
    I only have an equity of $50k and loan capacity is 250k (even though household income is approximately $200k but I am on mat leave so bank only allow that much).
    I spoke to a few companies after seeing their ad on facebook but all of them offered me H&L package but I would love to buy a residential house. I know that’s a lot to ask since we don’t have money, but any suggestions are very appreciated. Also after doing some research I think I have to go with an BA as I have no previous experience...
     
    EthanN, 6th Jun, 2019
    #1
  2. Propertunity

    Propertunity Well-Known Member

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    19th Jun, 2015
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    NSW
    Hi and welcome. Most BA's would not be working in an area that had $250K homes on land for sale. The demand would not be high enough. Beware of a BA that would not actually visit the area and instead just email you links to properties in remote country towns.

    I would imagine with your income, when you return to work after being on mat. leave, you could get a much better budget to work with.
     
    Propertunity, 6th Jun, 2019
    #2
  3. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi! Welcome to PC.

    Are you returning to the same job, and able to get a letter from your employer to state this?

    If you have cash savings to cover the shortfall in borrowing capacity during mat leave, then you should be able to extend the $250k further.

    If you have cash savings as well, through effective loan structuring, you could look at getting a better quality asset

    $250k may not be quality.

    Glad you found PC before signing up with a company selling H&L.

    Definitely worth investing in a BA, if you feel you need the support. A lot of our clients have worked with BA's in the past - especially starting out their property journeys.
     
    Property Twins, 6th Jun, 2019
    #3
  4. EthanN

    EthanN New Member

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    6th Jun, 2019
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    Sydney
    Amazing!!! Thanks so much for letting me know @Property Twins. I will need to get another look from other brokers I think. And I am seriously lucky to find out abt PC.
     
    EthanN, 6th Jun, 2019
    #4
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  5. Shogun

    Shogun Well-Known Member

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    26th May, 2018
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    Perth
    Mostly at $250k the property will be in a country town or a lower socioeconomic area. Both with increased risks. Often good cash flow and poor capital gain potential and can be difficult to sell (hence why they were cheap to buy initially)

    I would spend a lot more time reading posts/threads on here.

    Even in Perths currently depressed market $250k doesn't buy quality
     
    Shogun, 6th Jun, 2019
    #5
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  6. EthanN

    EthanN New Member

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    Sydney
    Thanks Alan :)
     
    EthanN, 6th Jun, 2019
    #6
  7. RS Gumby

    RS Gumby Well-Known Member

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    1st Apr, 2016
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    Location:
    victoria
    You might be able to get a property for 250k north of Adelaide , DT & Dave Mews might be able to expand on this
     
    RS Gumby, 7th Jun, 2019
    #7