Excuses, excuses, excuses. People seem to find a lot of them when you ask why they are not making a fortune by investing in the real estate market. It is time that someone nipped those excuses and reasons for failure in the bud.

Myth #1 – No Cash

A common misconception in the investment world is that you must have a lot of money if you ever plan to make a lot of money. The truth is that when you find a great bargain on a property deal, everything will just seem to fall into place for you. Any veteran investor will tell you that lack of funds is the least of your worries; you just have to know where to find the best deals. If you are able to negotiate the right price, you will find partners beating down your door for a slice of the deal.

Myth #2 – No Credit

A large number of people turn away from the real estate market just because their credit is less than perfect. In all actuality, good credit is beneficial but not required. There are a number of different options such as owner financing, property flipping, leasing and more that allow you to make money in the real estate market no matter what your credit score may be. You can also partner up with another investor whose credit is a little better than yours is, or borrow the money.

Myth #3 - No Time

People seem to think that if you have a home, spouse, kids, job, etc, there is no way they will have the time to invest in the real estate market. The fact is you probably have more time than you realize. Do away with a few hours of television each week and you will find a lot of extra time. Load the kids up and make bargain house hunting a fun road trip that the whole family will enjoy.

Property Options Australia
Property Options Blog © 2006 - 2009

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More and more new immigrants are coming to Australia and need information on building up your credit history as well as finding out how you can get a grant to purchase property. There are all different types of hurdles to jump through for new expats in Australia.

Overcoming Property Hurdles

One of the biggest challenges many newcomers to Australia face is purchasing property. In fact, if you ask someone who has been through the process, he or she may recommend you rent for a while when you first arrive in Australia. Never attempt to purchase a property in Australia before you have actually relocated to the country. This will only put you under extra stress that is not necessary. In addition, you are not likely to find the ideal property right away.

Once you have rented a place in Australia for a while and have concluded that Australia is the place for you and you would like to invest in some of the local real estate. However, without a credit history, new expats are left wondering just how to purchase a piece of property in the Australian market.

A New Beginning

No matter what kind of credit rating you held in your original country, it is worthless once you relocate to Australia. If you plan to take out a mortgage, you will have to start all over again from scratch as if you have never had credit in the past. It makes no difference if you have a bag of cash from selling your previous home. Having the money to put down, does not instantly check the right boxes on the credit history forms.

It is a good idea, if you are planning to purchase property in Australia that you have a permanent place to work in Australia. This will look good when you are filling out applications for a mortgage. When a lender sees that you have secure employment and have resided in Australia for at least six months, your application will look even better.

Property Options Australia
Property Options Blog © 2006 - 2009

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In this installment of our series on tackling mortgage issue we will continue to look into common misconceptions regarding mortgages.

Your Credit Card Limits Can Affect How Much Money You Can Borrow

It’s true. You would think that the balance mattered more, but that is not so. It is the total amount of money that you are able to borrow that matters to lenders. If you have a high limit card, even if you don’t owe much on it, it can affect your ability to get a mortgage loan.

You Don’t Need To Have A Huge Down Payment

It helps, but it is not an absolute necessity. It used to be that you had to have 20% down to get a mortgage loan. Having a large down payment will help you by showing lenders that you are really serious about getting a new home and committed to the financial responsibility that it represents. It is also a bargaining tool as you can shop around for the best mortgages you can find if you have more money to throw around. If you have a higher down payment you can generally secure a lower interest loan and will often times pay lower fees as well. However, if you don’t have that much money saved up you can still get a mortgage. Many lenders off up to 100% financing.

Cheaper Is Not Always Better

If the deal sounds too good to be true, then it probably is. Beware of mortgages that offer low interest rates but tack on so many fees that you end up paying more money in the long run. Many of these “value loans” also have less flexibility and will not allow you to make lump payments towards the principal or your loan. A better option is a nice steady loan that does not have any penalties or extra fees.

We will continue to explore more mortgage issues in the next installment.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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