i understand managing the 10% down payment for 2nd and 3rd property through the equity on your previous properties, but how did you manage to get 3 different mortgages on a $110k salary within couple of years time?
i just bought a home in truganina near schools 22ks to cbd 3 rooms 1 livingroom 2 toilets double garage land is rectangle 17 meter front land 490 square meters. House at 138 square meters. i paid 630k with needing small jobs like a good paint etc. I have have seen prices go up really fast there. Do you think i paid to much? Or average house is 13 years old.
Hello Sanjna. I recently to start watching your videoes and decide what I like. Please kindly explain this is not clear. 1. 8:34 Kindly how did you get evaluation complete on first property if you buying only few months after purchase? Is there bank that allows this? CBA makes me wait minimum 1 years to do next valuation or I have to use same purchase value. Please please explain this very interest. Is this because your bank staff its possible? 2. 12:06 Kindly please explain. $15000 maybe for buyer agent isn't it? But if your able to buy the asking price is only $250000 and your buyer agent help your getting discount to $237500. But saving $12500 means your buyer agent cost you $2500 more? Kindly explain? How is this benefit you with buyer agent please make sure your not cheated. Do I understand thank U. 3. Please kindly answer me from other video. Is your doing principles and interests or just interests only? Thank you and I live in Perth you will find properties here! :)
Hey - I would suggest speaking to different banks and seeing who can complete this valuation for you. Also remember that rules may have changed due to the pandemic, so banks might want to wait for a minimum period. I personally don't think you should think of a buyers agent like that because the return is going to be far higher when your property appreciates in the future. I personally would not feel comfortable researching the property myself as I want it to be a financially good decision. I am paying interest only for now. :)
@@successbysanjna Hello thank you so much for you kindly reply. May you please give advice on what you do to get valuation so soon and how you go about this please. I ask CBA my bank about rules and it has always be that they take the purchase value until after 12 month then you get new valuation. When valuation then its for 12 month again. My broker says that Westpac ANZ and NAB big 4 bank is all same and interesting that you get valuation in few months please kindly help advice for this. I try refinance by broker and my value is highest by Westpac and when I go CBA to tell them try consider they say valuation is still recent only 8 months can't redo. I don't want want to start new bank and refinance but my valuation is not fair and do not know what we can do. Is it staff connections helps? I ask and big 4 banks no change to value rules. Please kindly discuss maybe next video ideas this will be helpful.
i dont understand- if you have the same "income from your job" how will the bank lend you more money for the 2nd/3rd investment properrty. How will they see you as bein able to service it. I understand that you can use the equity, but what about the rest of it?
When I bought my first investment property I didn't use my maximum borrowing capacity, so I could still service more properties if I wanted to, but I obviously didn't have the savings for it at that time. I waited 8-9 months later and purchased the 2nd and 3rd with just equity and my servicing was still fine :)
It doesn't protect you from that. It just means if you don't deposit 20% of the purchase price the bank deems you as risky investment, hence why you need to pay LMI to cover their insurance fees if you default. If you can't get a tenant in a property that isn't the banks fault - hope that makes sense :)
LMI protects the bank. It is insurance for the bank- so if you default, the bank will lodge a claim to recoup any loses they may incur as a result of you defaulting.
Hey I'm a year away from purchasing my third but I'm concerned with the 1mil debt I'd rack up since the properties aren't cheap. Could you suggest any ways to deal with this massive debt? I wish to have atleSt 5 properties and am not interested in paying it off in 20 years
You also mentioned something about leveraging your equity to continue to fund new properties- does that mean you won't necessarily pay off your mortgages? If your debt exceeds a certain level your borrowing cap may be reduced and not be able to keep doing it?
Hey girl thanks for your question. Can I ask whats so concerning about having a million dollar loan? I personally don't care to have a large loan. It means I am able to get multiple properties and leverage the free debt available from the bank. This will mean your properties will appreciate faster than only having 1 investment over a period of years. Once I decide on purchasing my dream house, I will sell the investments and pay off the house in one go :)
Yep that makes sense actually. I think it's like a psychological thing that i feel like I have to pay it all off from my job rather selling one off! I think the issue is more mindset
Also, do you still rent while doing this strategy? My third property is the home I would like to live in however I know I T's not productive debt so just wondering if renting is a better option or subletting it out to have a roomate
Hey! Love the content but should probably get the pre approval first and then look for a property ;) You can always renew the pre approval, and go with a mortgage broker who can handle it all
Hi Sanjna, as always amazing and very informative video. I have a question which I am not sure how to ask without sounding rude. I have been searching for reviews of Ravi Sharma as a BA. I tried some of the property forums as well but couldn’t find much. As a part of full disclosure, I wanted to check if you have any personal affiliations with Ravi?
Hi Sanajana, congrats and your videos are so motivating. Please I would like to get in touch with your buyers agent. I have purchased our 1st home last year and looking into buying next property
Thank you so much for the info! Very helpful :) Quick question - did you actually go view the property before purchasing it? We really wanted to go into the market ASAP but given our current lockdown situation - it's just quite hard if only inspecting online. Thanks so much :)
Hey Thao - no I don't see the need to view the property before purchasing. It's not like you understand the building and if there were any issues you wouldn't know how bad or good it is. I leave this up to the professionals, by making sure I do building and pest reports.
Salient points Sanjna. That 6% return is really more like 60% return due to the leverage - and then there's the capital gains... My problem lately is I keep having my offers rejected! I've been trying to buy my 2nd property for 3 months. Market is difficult to enter right now for multiple reasons
What are you going to do if the world economic Forum's plan, of constant, interest rate rises, keeps happening? Their Moto " by 2030 you will own nothing,and be happy"
Congrats for 3rd property Sanajana 😊 I tried to quit my 9-5 job. I had enough savings to buy my next property but when I talked to the bank they said that I have to be in a business for approx 18 months to get loan approval. Can you help me with that how did you managed to get yours. Thanks:)
Hey - I had purchased my properties back when I was working my 9-5 job. I haven't yet purchased any properties since quitting my 9-5 job. Alot of banks will require you to wait for a period of time before you can purchase again.
i understand managing the 10% down payment for 2nd and 3rd property through the equity on your previous properties, but how did you manage to get 3 different mortgages on a $110k salary within couple of years time?
I have 2 mortgages but 3 rent payments coming through as the second investment is actually a duplex so I earn rent from both sides :)
i just bought a home in truganina near schools 22ks to cbd 3 rooms 1 livingroom 2 toilets double garage land is rectangle 17 meter front land 490 square meters. House at 138 square meters.
i paid 630k with needing small jobs like a good paint etc. I have have seen prices go up really fast there. Do you think i paid to much? Or average house is 13 years old.
Hello Sanjna. I recently to start watching your videoes and decide what I like. Please kindly explain this is not clear.
1. 8:34 Kindly how did you get evaluation complete on first property if you buying only few months after purchase? Is there bank that allows this? CBA makes me wait minimum 1 years to do next valuation or I have to use same purchase value. Please please explain this very interest. Is this because your bank staff its possible?
2. 12:06 Kindly please explain. $15000 maybe for buyer agent isn't it? But if your able to buy the asking price is only $250000 and your buyer agent help your getting discount to $237500. But saving $12500 means your buyer agent cost you $2500 more? Kindly explain? How is this benefit you with buyer agent please make sure your not cheated. Do I understand thank U.
3. Please kindly answer me from other video. Is your doing principles and interests or just interests only?
Thank you and I live in Perth you will find properties here! :)
Hey - I would suggest speaking to different banks and seeing who can complete this valuation for you. Also remember that rules may have changed due to the pandemic, so banks might want to wait for a minimum period. I personally don't think you should think of a buyers agent like that because the return is going to be far higher when your property appreciates in the future. I personally would not feel comfortable researching the property myself as I want it to be a financially good decision. I am paying interest only for now. :)
@@successbysanjna Hello thank you so much for you kindly reply. May you please give advice on what you do to get valuation so soon and how you go about this please. I ask CBA my bank about rules and it has always be that they take the purchase value until after 12 month then you get new valuation. When valuation then its for 12 month again. My broker says that Westpac ANZ and NAB big 4 bank is all same and interesting that you get valuation in few months please kindly help advice for this. I try refinance by broker and my value is highest by Westpac and when I go CBA to tell them try consider they say valuation is still recent only 8 months can't redo. I don't want want to start new bank and refinance but my valuation is not fair and do not know what we can do. Is it staff connections helps? I ask and big 4 banks no change to value rules. Please kindly discuss maybe next video ideas this will be helpful.
How much was your buyers agent ? you said you had zero cost for your 2nd and 3rd property. I'd love to hire your agent
Buyers agent cost around $10K-$15K :)
Amazing video! Do you pay back the interest only on your mortgages or full mortgage?
I'm paying back principal and interest :)
what’s the minimum downpayment requirement for an investment property in Australia?
i dont understand- if you have the same "income from your job" how will the bank lend you more money for the 2nd/3rd investment properrty. How will they see you as bein able to service it. I understand that you can use the equity, but what about the rest of it?
When I bought my first investment property I didn't use my maximum borrowing capacity, so I could still service more properties if I wanted to, but I obviously didn't have the savings for it at that time. I waited 8-9 months later and purchased the 2nd and 3rd with just equity and my servicing was still fine :)
So you used Ravi Verma. How was your experience with him or his company. I am looking for a buyers agent too.
Ravi Sharma haha yes. My experience was great. Just do your research and compare them to see who better aligns to you and your goals.
Does LMI protect you from declaring bankruptcy when you can’t get a tenant in the particular property? therefore, can’t pay the mortgage?
It doesn't protect you from that. It just means if you don't deposit 20% of the purchase price the bank deems you as risky investment, hence why you need to pay LMI to cover their insurance fees if you default. If you can't get a tenant in a property that isn't the banks fault - hope that makes sense :)
LMI protects the bank. It is insurance for the bank- so if you default, the bank will lodge a claim to recoup any loses they may incur as a result of you defaulting.
Congratulations on your 3rd property! Really a good investment!
Thank you Marel! :) Hope you're well!
Congrats! Question though: who pays for all those mortgage interest rates? Are they completely covered by rent?
It's covered by rent :)
Do you rent out all these properties?
Yes :)
Out of curiosity which states are your properties in?
South Australia and Tasmania :)
How much are they?
Similar price to my first investment property :)
@@successbysanjna do you believe that a 3 bedroom unit would make a good investment? I recently brought one in Perth with a land size of 352m squared.
Hey I'm a year away from purchasing my third but I'm concerned with the 1mil debt I'd rack up since the properties aren't cheap. Could you suggest any ways to deal with this massive debt? I wish to have atleSt 5 properties and am not interested in paying it off in 20 years
You also mentioned something about leveraging your equity to continue to fund new properties- does that mean you won't necessarily pay off your mortgages? If your debt exceeds a certain level your borrowing cap may be reduced and not be able to keep doing it?
Hey girl thanks for your question. Can I ask whats so concerning about having a million dollar loan? I personally don't care to have a large loan. It means I am able to get multiple properties and leverage the free debt available from the bank. This will mean your properties will appreciate faster than only having 1 investment over a period of years. Once I decide on purchasing my dream house, I will sell the investments and pay off the house in one go :)
Yep that makes sense actually. I think it's like a psychological thing that i feel like I have to pay it all off from my job rather selling one off! I think the issue is more mindset
Also, do you still rent while doing this strategy? My third property is the home I would like to live in however I know I T's not productive debt so just wondering if renting is a better option or subletting it out to have a roomate
It was great to see you sharing the information by breaking down and with such a transparancy. Thank you soo much sanjana for your knowledge.
My pleasure 😊
Hey! Love the content but should probably get the pre approval first and then look for a property ;) You can always renew the pre approval, and go with a mortgage broker who can handle it all
Who was your conveyancer?
Conveyancers change according to the area you purchase. I stick to a local conveyancer who knows the area and laws of that state.
what happens when interest rates go back through the roof?
Can’t be living in fear because of that and not invest. Given the sentiment, it doesn’t look likely it’ll happen anytime soon.
@@successbysanjna agreed. do you have a plan if it did happen?
Congrats on your new investment!
Thank you!
is your buyer agent is Ravi sharma?
Yes :)
@@successbysanjna ok I will contact him or should i go through you?
Really love the depth and use of numbers in this vid!
You're welcome! I try to be as honest and transparent as possible :)
Hi Sanjna, as always amazing and very informative video. I have a question which I am not sure how to ask without sounding rude. I have been searching for reviews of Ravi Sharma as a BA. I tried some of the property forums as well but couldn’t find much. As a part of full disclosure, I wanted to check if you have any personal affiliations with Ravi?
You can check his google reviews online :)
Hi Sanajana, congrats and your videos are so motivating. Please I would like to get in touch with your buyers agent. I have purchased our 1st home last year and looking into buying next property
Thank you so much! You can reach out to personal finance with ravi sharma (youtube channel) :)
Thank you so much for the info! Very helpful :) Quick question - did you actually go view the property before purchasing it? We really wanted to go into the market ASAP but given our current lockdown situation - it's just quite hard if only inspecting online. Thanks so much :)
Hey Thao - no I don't see the need to view the property before purchasing. It's not like you understand the building and if there were any issues you wouldn't know how bad or good it is. I leave this up to the professionals, by making sure I do building and pest reports.
Salient points Sanjna. That 6% return is really more like 60% return due to the leverage - and then there's the capital gains...
My problem lately is I keep having my offers rejected! I've been trying to buy my 2nd property for 3 months. Market is difficult to enter right now for multiple reasons
Market is definitely tough atm - you might have to go above your offered price to get in
$237k for a Duplex where are we? 1 bedders?????
I bought the duplex in November last year, so very much doubt you'll find something like that now.
@@successbysanjna thanks for sharing the content. You mean 237,000 each ? Would you like sharing which state / suburb did you buy that duplex .Thanks
What are you going to do if the world economic Forum's plan, of constant, interest rate rises, keeps happening? Their Moto " by 2030 you will own nothing,and be happy"
Congrats for 3rd property Sanajana 😊
I tried to quit my 9-5 job. I had enough savings to buy my next property but when I talked to the bank they said that I have to be in a business for approx 18 months to get loan approval. Can you help me with that how did you managed to get yours.
Thanks:)
Hey - I had purchased my properties back when I was working my 9-5 job. I haven't yet purchased any properties since quitting my 9-5 job. Alot of banks will require you to wait for a period of time before you can purchase again.
1st
Will u marry me