VIC I have 80k saved

Can someone help me where to buy ? I currently have and income of 45k per year and i have saved 80k on the bank, maybe investing in property in melbourne?, could this be possible? Thanks

 

I think people will need more details to give you some guidance. Are you looking for an investment property or a place to live in ? How important is it being close to transport/beach/etc.
With X amount of salary and Y amount of saving the brokers will only be able to give you a fair idea - I would think you'd need to get in touch with a mortgage broker (plenty on here) and share more details for an accurate idea. Don't fall for pre approvals.

 

Assuming the borrower has no other debts, isn't paying any rent, has no credit cards, no student debt...

It might be possible to purchase something worth about $320,000.

It's possible to buy for this price point in some areas of Melbourne, but it's not a lot. It would go a bit further in Geelong and do quite well in Ballarat.

 

Are there any avenues to improve your income at all? This would help you a lot.

In the meantime, I trust Peter Ts prognosis of 320k; this gets you some decent properties in Adelaide. Some of DaveM's recent purchases were within that range, so worth having a look.

 

What about if i wanna invest in property with 100k cash and an income of 45k per year? Wud that be a good option , would and investment in property pay off in the long term? Thanks

 

I believe the problem is serviceability (ability to make the loan payments).
That is calculated on your salary. Only once that is acceptable, then they move onto the deposit situation. It is a real pain in the butt. You do so much work saving for a deposit only to find that there is a limit based on their over-estimations of costs compared to what your salary is.

There are a few mortgage brokers on here if you do a search for some that have been recommended and they can do the calculations for you on how much you can borrow.

Generally you can borrow more if it is an investment property since the renters pay for most of the loan repayments, so that may be a better situation for you.

Besides that, getting your income up would really help a lot. Maybe read through some threads for ways to try to increase your income and see if anything seems like it might work for you, but yes you need both deposit (or equity in an existing property) plus serviceability. If either one is lacking you can only borrow a smaller amount that you are seen as able to service.

I don't think anyone can give you a yes or no to this ... only different things for you to weigh up.
Looks like there is a fair chance rates may be rising soon, and if it rises as much as 2% (which is not a small amount), less people can service their loan payments and people start selling properties and with too much supply prices would drop (in the short term - say over a few years). Might drop a little, might be a lot. Might also just level off if rates rise a little but not too much. It is hard to predict the future.
In the longer term, it probably will get a decent return if you can afford to keep it when the interest rates rise and hold it through the downs until it goes up again - which is why serviceability is so important. If rates go up and you can not service the loan and have to sell when everyone else is selling, you might end up losing $50,000 because you sold it after it went down and before it had time to go back up and make a profit.

Sorry if this all seems really difficult and confusing, but it does become easier to understand the more you learn about it - give it time and do some reading on this forum when you are not too busy - this forum has some great posts every day explaining a lot which helps you understand.

It might be am idea be to hold off on a decision and spend some time learning about it so you can decide after you have a better understanding. But of course keep asking questions if there is anything you don't understand.

Just something to think about.

 

I'm not a mortgage broker but well done on saving $80k

 

+1 A. Brew's post. Find a broker, work out what you can borrow and check out your options from there.

 

Good work saving a considerable amount of money on a relatively modest income. Your main challenge will certainly be in the borrowing capacity department - which whilst you may not be able to buy 2mil overnight will still give you a strong base to start buying property. As your income improves you will then be able to expand from there with further saving/equity growth.

Connect with an investment focused broker who will be able to ensure you build the right initial foundations with your first property purchase/s. With 80k that will open up options particular in the Western suburbs.

 

Remember that you can use multiple mortgage brokers to help you with pre-approval for the max capacity you can get as different brokers have access to different deals or lenders. I recently had this case with my third place where the mortgage broker I was with couldn't find me room for a third property even with 90% LVR and used the banks valuer (always source an independent valuer). I had both my properties with one bank; they couldn't restructure it to help me get the 105% LVR. I ended going with another broker who found me a deal by refinancing my PPOR and got an independent valuer who valued my Canberra property at 50k above my purchase price rather than just 20k. I was able to buy the third place with 105% LVR structured as per one of @Terry_w very useful articles Lesson is to be persistent, dont let your mortgage broker tell you that your borrowing capacity is not enough!

 

Terryw’s Ideal Loan Structure https://propertychat.com.au/community/threads/terryws-ideal-loan-structure.6016/
This one Pentanol?