Welcome to Top Tips Tuesday!

This week’s tip is for those wanting to know how to get into the property market.

My main tip that will really enable you to get into the property ladder is to speak to to a finance specialist (bank or mortgage broker) before you even start looking at properties. There are two important figures that you will need to know to determine the loan or the success of the loan.

Number one is a borrowing capacity. That’s how much the banks will potentially lend you. And number two is the deposit. Most banks will lend up to about 90% to 95% of the purchase price.

There are several ways we can go about obtaining that deposit. Genuine savings, obviously the best way. You could obtain another loan from another person, even a parental guarantor or sibling guarantor. Another family member that owns a property, that has got some equity in it may be able to help you with the deposit side as well.  

The most important thing is to find out what those figures are – how much money you can borrow and how much money you need for the deposit, and then work on a plan.

Budgeting is another important thing to consider because the banks are going to investigate your spending habits over the last few months when you apply for that loan. Try and save as much as you can, reduce your spending and try to increase your income and your savings and put on a regular amount away per week.

If you would like to see the full video click here. 

If you would like to have a discussion about your property needs click here to book a time in my calendar and I will give you a call.

Regards,

Geoff Tomkins

Buyers Advocate

PH: 0404 852 781