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No deposit, lots of serviceability

Discussion in 'Property Finance' started by username, 19th Oct, 2015.

  1. username

    username Member

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    NSW
    Hi everyone, wanted to see if there are any options for us that we haven't already thought of?

    We have made our first two purchases in the past 18 months which has basically cleared out our savings with the exception of a buffer which I wouldn't want to see go much lower.
    Neither property has increased enough to pull any equity from. We are DINKS and have plenty of income to cover quite a bit more borrowing but... not enough deposit.

    We are super keen to purchase another IP (or two) ASAP.

    Is there any way around this, especially in the current lending environment? (Not interested in getting a family as guarantor)

    Or....Are we just being too impatient and just need to wait and save?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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  3. wylie

    wylie Moderator Staff Member

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    Is your buffer enough for the next one? And then arrange a credit card (cut it up) for the buffer? Not ideal I guess, but just throwing it out there.
     
    Taku Ekanayake and bob shovel like this.
  4. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Lots of people in your situation - but there's no magic bullet. You either need to A) save, B) wait for equity growth, C) create equity through effective renovations, or a combination of all three.
     
  5. username

    username Member

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    No mates, interesting you should mention this- I first came across the SMSF concept about 30 minutes ago- do you have any insight to offer? Off to google I go :)
     
  6. Redom

    Redom Mortgage Broker Business Member

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    A few outside of the box plays that may be worth putting on the discussion board:

    Could team up with a deposit partner that lacks the other ingredients for some value adding short term projects and split the profits.

    Could get a guarantor that isn't family - ANZ will take your friends/neighbours on.

    APRA hasn't changed the game for this scenario all that much, always needed some form of deposit/equity/security approach to get funding and that remains the case.
     
  7. cheekykoon

    cheekykoon Well-Known Member

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    Go offshore lending?
     
  8. skyfall

    skyfall Well-Known Member

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    I've got lots of equity but no serviceability so maybe we could do something together if we're on the same page and consider all the pros and cons, legal stuff etc.
     
    cheekykoon likes this.
  9. tobe

    tobe Well-Known Member

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    SMSF property and leverage doesn't work the same as normal residential IPs. Investigate carefully.
     
  10. jpcashflow

    jpcashflow Well-Known Member Business Member

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    There are no short cuts and I would not use a guarantor just to buy another 1 or 2 properties quickly.
    If you have allot of spare income, then just keep saving and make a plan to ensure you goals are being met. Money management is so important not jut for now but also for the future.

    With your current savings pattern how long will it take to save for another deposit?
     
  11. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Save/Wait/Reno
     
  12. TaylorChang

    TaylorChang Well-Known Member

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    There are some lenders still accepting non-genuine saving, such as family pledge... ie. as for family member to contribute equity/saving and use your cashflow as servicing.