Hi P@ck,

after computation, i’ve found out that my borrowable or useable equity is 92K.

Current valuation is $502,500 then? 80% of that is $402k, and you owe $310k – difference = $92k. How’d I go? ;)

based from my readings, simple rule of thumb is to multiply the useable equity by 4. Which means my max purchase price for IP must be within $…

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Hi again P@ck

Ok thanks for the clarification that makes a big difference.

Well remember that 92k has to cover your deposit and acquisition costs.
Yes keeping the loan to valuation ratio under 80% will remove the payment of LMI however will certainly limit the growth of your portfolio.

When we work with an investor we try and ascertain their…[Read more]

Hi P@ck

Firstly welcome to the forum and I hope you enjoy your time with us.

Limited information to go on but the main thing is the potential equity. I am unsure whether you are referring to “borrowable equity” or “property equity” as there is a massive difference but let us assume all is well at this stage.

Subject to serviceability there is…[Read more]