Own Home that I am living.

I am only new to the property market and am interested in property investing.. i own the home i am living in out right. I am wanting to purchase a home and either renovate and sell it or keep it and rent it out. I am wondering if this is possible to do in my situation as i don't have an income due to a back injury. Just wondering if anyone knows if there is a way for me to achieve my dreams or am i kidding myself..

 

Yes, it could be possible, but will depend on a lot of things - seek a broker out for some advice.

 

What do you do for income Gavin? Welfare or Work cover? Compo payout?

 

I am currently on centrelink. No compo payout..

 

Where will you get the money to renovate?

 

I am wondering if a bank or broker will lend it..

 

Welcome Gavin. Will your injury prevent you from doing much of the work yourself? Because it can get expensive once you outsource and will probably eat into your capital gain.

 

I have a slipped disc so any repetitive or heavy lifting is all but out of the question.. just trying to figure out a way to use the home i own to make me an income so am trying to figure out if a lender would lend me enough money to get started

 

Very unlikely a broker would lend you money. They are generally intermediaries between the borrower and the lender.

It is also unlikely that you could borrow the costs for a renovation other than as cash out secured against your main residence.

 

So you think securing it against my house would work??

 

I have no idea.

 

Why not rent out extra rooms in the house you own for some extra income? I wouldn't take a loan just now and will wait till you can work and there is income to support it..

 

Don't "secure" anything against your home.. By secure I mean don't cross collateralise.. Because if your investment cannot be sustained due to any no of reasons your home becomes the security the banks can take as well.

Not all brokers are great or work well for you so ensure you have a good one.. I wouldn't do anything riskier than renting my rooms out while the back recovers and I can work again.