How much deposit do I need for the bank?

By Krista Sharp

Craig Sharp:             I might, or I’m wanting to go out and buy myself a 500,000 dollar home, how much have I got to put down?

Terry Christo:             As a very minimum, you’d want to have approximately 8% of the value of that property, so about 40,000 dollars.

Terry Christo:             If I’m going to move into it myself?

Terry Christo:             Correct.

Craig Sharp:             Mm-hmm (affirmative).

Terry Christo:             In a perfect world you’d probably want to have 10% or slightly more than that to save on the cost of mortgage insurance.

Craig Sharp:             Right. I’d like to talk a bit more about that in a minute. What about if I’m buying an investment property? Same thing?

Terry Christo:             No, slightly different because the banks won’t lend as much for investment properties as they will for unoccupied homes. So for an investor they would need 10% of the purchase price plus their cost. A significant cost in Queensland certainly to buy a property is transfer duty. So you know that’s a significant chunk of money. Around 500,000 dollars, the investment stamp duty is approximately 18,000 dollars.

Craig Sharp:             Oh it’s a bit.

Terry Christo:             So it’s substantial. So for an investor wanting to buy a property at 500,000 dollars they’d need 50,000 dollars towards the deposit being 10%, plus probably another 20,000 to cover off the other incidental costs, the main one being transfer duty.

Craig Sharp:             But it’s a lot less if I’m buying the house to live in?

Terry Christo:             About 7,000 dollars less.

Craig Sharp:             Okay.

Up to Date

Latest News

  • Christmas Demand for Rental Property

    Our property managers are currently experiencing unprecedented demand for executive rental properties in the Indooroopilly, Taringa, Chapel Hill, St Lucia, Toowong, Kenmore, Kenmore Hills, Fig Tree Pocket and Chapel Hill areas and surrounds. There are many people moving from interstate or simply needing to move before Christmas and we do … Read more

    Read Full Post

  • Property Investor Customer Portal

    How to Log in to your portal. Current customers of Ray White MetroWest rentals at Chapel Hill can gain access to all their current information via the following link to the landlord portal. Click here to access your Investor Owner Portal What to expect in the Investor Owner Portal Below … Read more

    Read Full Post