Looking for an Investment Broker to work wonders

Bit of a tricky situation here and looking for advice/a broker who could help.

So i currently am 21 and looking to buy my first IP i have spoken to a bank about getting a loan however i am restricted as I currently am only working casual ($500-900) a week and have a car loan with current repayments of roughly $415 a month, I do have a tick over 100k in the bank, no expenses but the car loan and live at home with parents. I know im stupid for having the car loan but im young and dumb. I do have an ABN as i did have a business that was earning roughly $700 a week but after corona i decided to leave it. Does anyone think they could help my poor soul? any advice would be appreciated

P.S i spoke to a BA a while ago and they said a property in the range or 300-400k would suffice

 

What did the bank advise you re your borrowing capacity? Which bank?
How long have you had casual income?
Some lenders may ignore notional rent where you are living at home, are young, as well as single

 

May be possible but really not enough info to answer accurately;
- How long in current job? > or < 6 months?
- Gross income averaged over the last 6 months?
- Car loan balance, remaining term and rate?
- Expected rental return from investment property?

 

it was with commbank, they advised that with a $400 a week rental income my borrowing capacity would be roughly $209k and if i got rid of my car loan it would be roughly 300k. Ive had my casual income for >1 year

 

so ive had current job > 1 year gross income over last 6 months would be roughly 19k, balance on the car 20k with 3.5 yrs remaining and expected return on property would be $400 a week - those are all estimates

 

Based on those estimates borrowing capacity around $270K currently - depending on monthly expenses and verification of the above figures (this is not with CBA either)
Do you need to buy right now?
Why not pay the car loan out?

 

Pay out the car loan and keep saving.

 

6 months ago you said you could borrow 500k. Whats changed?

pay off that car loan, get a permanent job and work towards a higher income.

cash doesnt contribute to your borrowing capacity. But a car loan decreases it.

 

You're right i could, I left that other job and now only have the soul income unfortunately

 

I dont need to buy right now but feel like my cash sitting in the bank is just a waste.

 

Property should be a long term thing. Investment should be lifelong. If your income doesnt support investing properly now, and you expect to get another job, nothing wrong with waiting. As long as you eventually do something. You have the desire to, and you are very young.

whats the interest on the car loan? Why would you take it out if you have cash? Explore that as a learning experience about your own ideas about money. Why didnt you use the money to buy shares in the last couple of months, for example?

Are you better off sorting out the job thing first, then probably buying a more expensive property that has better future prospects?

In the meantime, read and learn. Dont be too busy wanting to get ‘into’ investing and ignore learning how to do it properly. You should have read a lot in the last 6 months.

 

Tried looking at other asset classes?
Low cost ETF's for example, there's a few threads on here about them if you have a search.
Not advice

 

thanks for such good advice, I guess my advice at the time of taking out the car loan was to keep the cash in the bank for an investment like now however like you stated cash doesn’t affect borrowing power but a car loan affects it. Maybe I was poorly informed by the people around me. From the consensus on this forum people looking to invest should pay cash for their cars and steer away from loans? Seems logical to me but haven’t looked at it in that way.

 

I have looked into ETF’s but I guess I haven’t pulled the plug yet with such uncertainty around atm. Thanks for the advice

 

a lot of people on here would use cash for a car but it would also be a second hand economical car under $15-20k so that it doesn’t impact cash reserves for a deposit too much.

 

$5K - $10K for me

 

yes emphasis on my first post saying that I am young and dumb got to enjoy my life somehow! If I look back on it now I would’ve just kept my old car that cost me 5k and not taken out the loan but you live and you learn. Could’ve been worse!

 

Tell me when there hasn't been uncertainty.

Sheesh.

 

could have been better too. What you dont realise is how many times experienced investors have heard the things you are saying from newbies.

You can always justify your decisions, or blame the market, but you live with the consequences.

some investors worked hard at getting a good income, learned and planned hard, doing lots of boring stuff to set themselves up.

you are still looking for a magic fairy to help you, instead of making sacrifices yourself.

 

why did you listen to them? Are they successful investors or business owners?

listening is on you.