Is a $420,000 property achievable with a $28k deposit?

Back in the heady days of 105% loans our son bought his first PPOR. He and his partner had good incomes and were good at paying bills but had very little savings.

Luckily for him they bought in 2005 in Melbourne and rode the boom. After concentrated debt reduction and timely upgrading twice, they are now living in their dream $1m+ Melbourne home.

Quite a few of his friends also benefitted from no-deposit purchases.

But it was always a bit of a risky strategy.
Marg

 

Either sell the car for additional funds to buy as an investment, or buy as a PPOR to be able to qualify.

With the strong savings you're now making it would be worth considering growing that deposit, rapidly reducing your LMI payable - sticking to 88-90% LVR will reduce the cost significantly.

Better to have a lower leverage and quickly be able to reduce your debt so you can draw equity to purchase your first investment, than get in that little bit earlier and find yourself paying back the additional LMI and loan before getting into a position to make that next purchase.

 

Hi Peter, do you know which lenders do it? I found bankwest and boq do this, any others ?

 

@teetotal Liberty.