You may find it difficult to get your property portfolio off the ground if you have trouble saving for a deposit. But don\u2019t despair; if you\u2019re not able to generate your deposit through cash savings there are still ways to speed up the process of getting into your next property.<\/p>\n
A lack of cash doesn\u2019t have to keep you out of the property market. There are various options that can enable you to bypass the need to save up tens of thousands of
\ndollars, giving experienced investors and first-time buyers the opportunity to act now.<\/p>\n
A guarantor loan enables an existing Australian homeowner, such as your parents, to provide a limited guarantee for your mortgage. The guarantor uses equity in their own property as security for the borrower\u2019s deposit. The primary security for the loan is still the borrower\u2019s new property.<\/p>\n
Lenders offering these loans also put a mortgage over the guarantor\u2019s property, which supports the guarantee. These loans are generally used by people who can afford the loan repayments but have an insufficient deposit. It\u2019s important for guarantors to be aware of significant responsibility and obligations they take on, for the borrower to service their loan.<\/p>\n
If repayments fall behind, the guarantor\u2019s property could be at risk, so it\u2019s essential all
\nparties are aware of and comfortable with the loan requirements before entering into this kind of arrangement.<\/p>\n
If you\u2019re a homeowner or investor, you could have a deposit under your nose. You could already be sitting on a substantial amount of equity that could negate the need to save a
\ndeposit for your next purchase.<\/p>\n
This is particularly powerful in markets where property prices have grown in recent years.
\nBuyers should remember that you won\u2019t usually be able to borrow the full amount of
\nequity that has been created. Boosting the value of your property can be as simple as making some key aesthetic improvements or renovations, and having a number of lenders
\nappraise the property\u2019s value \u2013 some may value it more highly than others.<\/p>\n
Some people who consider themselves cash poor may have thousands of dollars stashed away in superannuation \u2013 and under the right circumstances this can be unlocked for property investment.<\/p>\n
Depending on your situation you might be in a position to establish a self-managed
\nsuper fund (SMSF), which could open up the opportunity to invest into property without having to save for a deposit.<\/p>\n
If you are considering an SMSF property investment, it is important to seek independent legal and financial advice based on your circumstances.\u00a0 f you set up an SMSF then you can generally borrow up to 80 per cent of the property value and your super fund covers the rest.<\/p>\n","protected":false},"excerpt":{"rendered":"
You may find it difficult to get your property portfolio off the ground if you have trouble saving for a deposit. But don\u2019t despair; if you\u2019re not able to generate your deposit through cash savings there are still ways to speed up the process of getting into your next property. A lack of cash doesn\u2019t […]<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[111],"tags":[125],"class_list":{"0":"post-2715","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-property-investment","7":"tag-investing","8":"entry"},"yoast_head":"\n