When investing in a property as investment, lenders will need to ascertain your Borrowing Capacity.

 

They will consider your Income and Expenses then allow 80% of the rental income from the Property.

 

This will establish your LVR (Loan Value Ratio) and your DSR (Debt Service Ratio)

 

What is required? 

a) proof of income by way of recent pay slips and 2 years tax returns. If self-employed both Personal and Business Returns

c) copy of contract for sale of the property

d) Letter from Property Manager indicating the Rental Income of that property

e) Rates and taxes for any other property you own

f) If you are using equity in another property then all the proof of income and outgoings for that property

 

If you are purchasing off the plan units or apartments, then you will require 10% deposit and balance on completion. However, any loan offer you obtain, will only hold good for 90 days, so you must be aware of that if the property is likely to take longer than 90 days to complete.

 

If you are purchasing a completed property, then you will pay 10% down and balance at settlement.

 

If you are purchasing a house and land package which is to be constructed, then you will have 2 contracts being one for the land and one for the construction. Your deposit will go in on land settlement then there will be draw down payments over the construction Period. This differs from state to state.

 

You will have significant savings on stamp duty if it is a 2-part contract.

 

Important to remember when Purchasing Property for Investment Purpose you look at it with the business requirements not a personal involvement.