Based on the LMI is with which insurance, you can refinance the loan with another lender within one year of LMI and they do not get charged new LMI.

Please let us know what finally happened.

Early payment is required to be done but in Offset account. Hence to pay or not to pay is not the question but how to pay is question.

You can not use the property fully paid for borrowing for deposit or as collateral, but rental income can be considered for serviceability for next property.
That is why you need to take loan in SMSF with offset account with interest only, this allows you to pay the loan in offset and keep loan out standing.

I believe you may have already taken your next step.

Just out of curiosity.
You have two property  valued at (400+450) =850K total
Total loan (330+300)=660K
Total deposit needed (20% of total properties valued)=170K
The money available of next property= (850-660-170)=20K you could buy land up to 100K but will be left with no money…[Read more]

It is nice to see that you are ready to take next step in your life. First of best of luck.

You can consider an option to get a rental property which is about 20% cheaper rent as compared to market. These are known as NRAS properties. If you contact good real estate in area they may be able to help you.

Other option to have share…[Read more]

It is all about knowledge and informed decision. No business is without risk but if risks are known and benefits out weight them , then business is worth.

Ignorance in business about risk is no no.
 

Let me explain you a property is negatively geared and negative cash flow.

Property value at $120,000
Loan on the property $95,000
Annual rental return $6240
Interest on loan=$4920
Total all other expenses excluding depreciation = $4070
Total cash flow loss=$6240-$4920-$4070=$2750
Depreciation=$4500
Taxable loss=$7250
Tax percentage…[Read more]

Please read the post below I have given numeric example. 

https://www.propertyinvesting.com/forums/help-needed/4349847

I was looking for your original question.

Is it a good time for buying?
Just your personal opinion.
I am looking for a $450K – $550K property with two bedrooms.
Newer unit will be better.
Area that I understand more is North West and Lower North Shore area.
However I'm open to good advice.

You might have seen no one choose to…[Read more]

This is exactly the conditions where mortgage brokers become helpful. 

I have sympathy with you.

You need to check the brokers's website and find their service philosophy. What they have been doing and may be some other sites such as face book, linked in etc may help.

Definitely do get some reference from the brokers him/her to start with.

If you are going for 20% deposit then there are many lenders and most appropriate lender is easy to find.

It will be good to appoint a mortgage broker in his situation.
You may be able to get lenders which will accept the company title, This will attract more legal scrutiny. Hence you may need to pay more application fee then normally. That is the reason it will be good to keep this tow loans apart. Refinance the IP then take money out of…[Read more]

Sorry as the question was incomplete I was only able to answer based on information provided.

All the best for the deal.

For your Question

"would the borrowing capacity be less or the same with two part time jobs vs the same income with one full time job?"

Clear answer is no.

You definitely need someone how can help you draw a business plan as builder, this business plan will have above points as starting point but need more detailed as this is big step. The above points will allow you to consider even before employing someone for business report.

I myself has gone through this question in near past for my…[Read more]

First of congratulations for finding the hidden gem in your life.

Take one step at a time. Settle in life with no property hassles. As properties are positively geared and you do not need money now.

Be on look out for better options in property such as positively gears and positive capital gain but have your tax also. Think of buying…[Read more]

I have mentioned Earnings and not taxable income, the earnings include allowances which may not be taxable. I have not seen in banks' or lenders' serviceability calculator asking for profession. The serviceability calculators are used for calculating borrowing capacity.

I have not seen in your Question Block of units as security. Did I miss something?

Your borrowing capacity is not dependent on type of job but earning. Lenders generally look at stability of job in terms of current employer i.e. you are with employer for how long and current profession i.e. how long you are in same profession.

It is good to know that you will be using your numbers for due diligence and avoid risk, Other use can be to compare the performance of two properties or expectation of performance over the period of time.

You need to include impact of your tax bracket, strata cost and money in offset account reducing potential interest but still…[Read more]

All this numbers even if they are correct, they mean nothing if do not use them properly.
They are used for what in your case?

Some of them are historical and some are current and some are futuristic.

There are few parameters need to be considered.

The development rules and zoning.

Quality of homes in near by and likely cost of construction.

The value after construction and potential profit after interest and tax

Benefit you might have based on sale value of property now and not have to pay tax as it is primary home.

Can you…[Read more]

I like the point of 
"strong infrastructure nodes around and LGA spending lots on local upgrades due to population growth…[Read more]

Let us develop in the discussion.

My two penny

Potential cash flow now based on rent and out going and tax

Potential capital gain in future with time span of 7-10 years and growth to double up.

Please confirm What I am understanding is as below is correct.

Todays condition
Owner occupied property valued at $400k , Value at start of loan was $320k remaining loan 250K offset account balance 250K.
Cash other then Offset account 87K
i.e. Net Asset $487K

Planned 
At the time of purchase of IP gift of 200K 
Net assets…[Read more]

What are you aims? How you want to achieve this financial aims?
Why one method over the other, have you based on your strength and weakness?

Then choose your team to help you achieve what you like to achieve.

If you are considering of option of 15% or 20% deposit, then It may be worth while to consider total cost of funding over the period of 5 years.
I agree if you have only option of 15% deposit then the city bank is more appropriate then others as it does not attract Lenders Mortgage Insurance.

You have comparatively low capital now but likely to build over the period of completion due to gift, bonus etc. 

You are…[Read more]

Please be careful negatively geared and positive cash flow property are more preferred then just negatively geared and negatively cash flow property.

Are you considering other features of the loan which might help you pay less over all in the period of 5 years?