What percentage did you use as a deposit to secure your first investment?
I understand that this question is quite boarD, but I'm curious to see how people are leveraging loans to produce positive or negative geared returns.
Typical Deposit Required for a Residential Investment Property?
Ronerrlaw on 29/12/2018 - 21:09
Comments
I have always been taught to negative gear any real estate investment, and once any investment becomes positive geared it is time to purchase another property - rinse and repeat. I started off with 5% deposit in early 2000's however in today's financial situation, expect lenders to be much more "stricter" with larger deposits ~20% mark, and less borrowing capacity.
I used 10% for first property, 10% second property, leveraging the rest, of course had to pay LMI. But I guess depends on assets - equity and finances
You want to avoid mortgage insurance, I think it is around 20%
I can't afford an investment.
To avoid mortgage insurance you will need 20% of the purchase price plus stamp duty. Depending on which state you are purchasing, stamp duty amount is different.
Often people forget stamp duty which is a significant cost when purchasing a property.
3%