Thursday, 02nd July 2015
Did you know that cash isn't the only deposit you can use when purchasing an investment property?
Or that you can ask to put down a 5% deposit rather than 10% when you make your initial offer?
Learning your deposit options is something that comes over time, but I'm taking you on a shortcut!
Your investment property deposit can be funded by the equity in your own home.
You will need an up-to-date valuation and to ensure your financier is willing to take this route.
Alternatively, if you have a self managed superannuation fund, you can use some of the balance as a deposit.
Then there is a deposit guarantee - with parents' approval, using a portion of equity out of their home for you to use as a deposit.
It can make it easier to seek a reduced deposit, which is where you need to get it right when you make your initial offer on the property.
Always ask for 5% rather than 10% deposit in the first instance - this makes a big difference in up-front funds required.
Until next time,
From the desk of Christine