Usually (and more than places) the high quality portion of financing to deposit is 80% to 20% If you try borrowing from the bank 80% of value of the house or property try to become with the remainder 20% put while the most closing costs (fees – in australia we must spend Stamp Responsibility, solicitor otherwise conveyancing costs, loan application costs, strengthening and you can insect review costs, etcetera For those who upcoming want to buy a moment property might need to come up with a similar put or other closing will set you back once again. A lot of people are unable to afford to achieve this any time soon, particularly because a majority of the bucks they utilized to save prior to is now attending spend the money for financial and you may repair of your basic possessions (especially if you always say live with your parents and today are now living in the property rather than lease it). So what people perform who wish to get more qualities was hold back until this new LVR of the house enjoys dropped to say lower than 60%.