{"id":3394,"date":"2015-02-11T01:00:30","date_gmt":"2015-02-10T14:00:30","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=3394"},"modified":"2015-02-11T01:00:30","modified_gmt":"2015-02-10T14:00:30","slug":"buying-your-second-investment-property-sooner","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/buying-your-second-investment-property-sooner\/","title":{"rendered":"Buying your second investment property sooner"},"content":{"rendered":"

 
\nIn today’s show,\u00a0George Raptis<\/a> from Metropole Property Strategists<\/a> answers a listener question. The question is a common one, ‘how do I go about purchasing my second investment property sooner?’<\/p>\n

Transcript<\/h4>\n

Kevin:<\/b>\u00a0 If you have a question for any of our experts, you can free call anytime on 1-800-300-206, and we\u2019ll get it answered for you. Carly called recently, and here is her question.
\nCarly:<\/b>\u00a0 I currently own one investment property. How do I go about purchasing my second one sooner?
\nKevin:<\/b>\u00a0\u00a0\u00a0Thanks for that, Carly. To answer your question, I\u2019ve got George Raptis on the line from Metropole Property Strategists in Sydney. George, what would you say to Carly?
\nGeorge:<\/b>\u00a0 There would be a number of things that I think you should take on board. First of all, you have to make sure you buy the right property so that you get growth and equity and it allows you the ability to borrow your next deposit. In a lot of cases, it\u2019s just too hard to save it.
\nAnother thing I\u2019d like to suggest is make sure you are attractive to the lenders. In other words, have a good income, a good credit record, have all your accounts in order, no large credit card debts or any huge personal loans, and make sure you\u2019ve got all your tax returns up to date.
\nAnother thing is make sure you are achieving the right rental return for your property. A few extra dollars from your rent can determine the amount that you can borrow next.
\nLastly, spend less than you earn. Save the difference and invest it.
\nKevin:<\/b>\u00a0 The\u00a0 first point you mentioned there about how hard it is to save for the next deposit, tell me a little bit more about what you mean by that, and how long does it take\u00a0 to build the\u00a0 equity to get the next deposit?
\nGeorge:<\/b>\u00a0 Obviously, a few things determine that \u2013 what happens as far as real estate prices are concerned. But also with regards to finance, I\u2019ve spoken to a number of people where they would like to save a 20% deposit because they want to not have mortgage lenders insurance coming into effect. But I\u2019ve found that in some cases, if they\u2019ve saved the 10% deposit, they can take on the mortgage lenders insurance. In other words, they can add that on to their loan. In other words, it gets them into the market sooner rather than later. It\u2019s just too hard to save another 10% deposit in a lot of cases.
\nKevin:<\/b>\u00a0 Yes. Take on that insurance is what you are saying, and don\u2019t fret over it?
\nGeorge:<\/b>\u00a0 No. I call it cost of doing business.
\nKevin:<\/b>\u00a0\u00a0The other point you made there, too, was about making yourself more attractive to the banks, and you gave a couple of hints there \u2013 about making sure that your credit cards are under control and so on. Is it that simple or is it about having a relationship with your bank manager?
\nGeorge:<\/b>\u00a0 Having a relationship with a bank manager is good, but at the end of the day, various lenders all have different rules. I know for a fact that some banks will look at, let\u2019s say, rental income for example. Some banks look at 100% of the rental income when it comes in to factoring in what sort of loan they\u2019ll give you or how much they\u2019ll give you. Some banks will factor in 90%, or some will even go as low as 80%. It\u2019s very important to do your homework, shop around, and see what the various lenders have got to offer.
\nKevin:<\/b>\u00a0 You are a buyer\u2019s agent, so you\u2019re dealing with buyers all the time. How are you finding them in terms of their relationship with the banks, and what sort of preparation should they be going through? Should they be talking to you first, or should they be talking to their financier first?
\nGeorge:<\/b>\u00a0 Obviously, for me, it\u2019s very important. It\u2019s good to have the good relationship with the financier \u2013 don\u2019t get me wrong \u2013 but in other words, if you don\u2019t a property strategy in play when you\u2019re going to have this conversation with a financier, it\u2019s really irrelevant. I believe that\u2019s putting the cart before the horse.
\nKevin:<\/b>\u00a0 A buyer\u2019s agent\u2019s role in all of this is to actually help Carly find the best property?
\nGeorge:<\/b>\u00a0 It\u2019s about:<\/p>\n