This is my situation i have my PPOR owe $143000 value $265000 1st Ip owe $212000 value $270000 2nd Ip owe $156000 value $200000 3rd Ip same as second I earn $35000 partner $28000 visa debt $2500. Question is i would like to borrow $245000 and have $20000 deposit.No other debt is this possible.
Dom[
]Dom, currently your LVR is at around 70%. With the new borrowings, (I’m guessing house value $265000, $20000 cash into the deal, pay for costs also?) that takes your LVR up to about 76%. On paper it probably looks ok, but of course will depend on your servicability.
Cheers
MelHi Dom,
With $63000 income and 80% of $800 per week rental income on 4 IP’s, and discard your credit card and any dependents you may have,[] and calculate your current loan repayments at 7%, I think based on serviceability you will be struggling with a major lender, However,the Rams, The Rocks and the Citibanks of this world may approve the loan,
Regards
StevenMortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
How much rent are you bringing in?
Kids?
Who is your current lender?
If you don’t want this stuff public then email me.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Just to add to my post, that I calculated at 7% but for calculating serviceabillity lenders will calculate existing and proposed annual repayments at about 8.5% or 8.7%
regards StevenMortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Yes it is possible. Could be messy if your loans are cross securitised.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks everyone for that, the reason is i would like to purchase a investment property with that amount in mind $245000. My PPOR is cross secured with 2 of the investment propertys and one is stand alone (212000 Value $270000) and i would put in $20000 plus costs melbear.
Rent is $1000,$1000,$960 per month.
And how do you work out serviceability?
Thanks again Dom[]Serviceability is not a fixed formula. All the banks calculate it differently.
You will need to approach them individually or use a broker who has all of the formulas.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You have approx. $500k of debt now and you want to increase to approx. $750k which may be fine but you want to make sure you’re not over extending yourself. You’ll sart to get very rent reliant and you just need to consider the risk of vacancy and interest rate increases. Be careful.
Cheers
Stu
At what level of debt are you considered to be ‘rent reliant’?
Cheers
MelI understand everyone has a differnt opinion on investing in realestate and many investors advise on diversification eg.shares, managed funds ,buisness ect , each one has a risk and it depends on your strategy but for me i look at it this way people are living in my houses and they are paying me money and eventually some of that money will be mine.And being and accepting that i am in the lower class of society(not a bad thing) makes me so determined to hold and buy as many propertys as i can. In the last two years with these 3 Ips and 1 ppor I have never made so much money in my 25 working years.
My point is if i can keep borrowing i will because you have to have the courage to do this and not say to youself i should have bought an investment property.[]
DomGood on you Dom,
Lower wage bracket doesn’t necessarily have to hold you back, it’s ‘Not’ what you’ve got but what you do with what you’ve got..
Depending on your current loan situations ( P&I, Fixed, IO ) as to what it may co$t you to re-finance and break any loans, however if you had IO from a year ago ( 6% or so) and you change now (7%or so) the lender will be happy to offer you another loan as he get’s you back on a higher rate, so maybe minimal charges..
By re-financing you could take the other properties back to 80%, freeing up ca$h for the new deal.
As has been pointed out though my friend… take care over-extending yourself, or practice wearing a balaclava : )
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Be careful of over estitmating present value of your properties. The lenders valuers are very conservative and you might find you LVR is above 80%
Maybe get your local real estate agent to give you a estitmate that is very conservative.
You might be better paying down some of your loans.
That’s fine Dom. Not passing judgement. Just simply pointing out the risks. Good luck.
Cheers
Stu
Total debts are : $ 143 K + $ 212K + $ 156 K + $ 156 K = $ 667,000 !!!
Total income $ 35 K + $ 28 K + rental (amount unknown but say $ 33,500 = 96,500.
At present the situation is already a borderline case.
In my opinion impossible to get another loan from a main stream lender because of serviceability problems.
Pisces
Thanks for the words of encouragement redwing much appreciated and pisces you would be surprised at what the banks would lend me.No harm intended stu just showing a bit of excitment at what i am doing compared to my peers.
Ip number 4 coming up stay tuned.
Dom[]Hi,
I have found a property $135,000 rents for $300 a week looking for lowest fixed interst rate 2 or 3 years. Hopefully contract will all go well.
Cheers Dom[]Hi Dom
On my books I have 2 year 6.99% and 3 year 6.95%
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Just a question to the mortgage brokers whom are members of this forum, do you youself hold any investment properties and how many.
[]DomI hold investment properties.
I have done reno’s, rentals, student rentals, land subdivisions and dual occupancies.
Actually the student rental is a reno too and I have been pretty happy with the new valuation and also the demand and rental I am finding. It is 5 bedroom and I reckon I could have filled 15 with top quality students! Looking for another one atm.
What do you hope to gauge from asking how many? Is this some sort of a scoring system?
I mean a chap might control a Million dollars worth of IP’s, but what does it matter if there are two or twenty involved? I am rambling on now…
Anyway 6.69% for 2 years, 6.79% for 3 and 6.99% for 5 years are my going rates. From a lender I used myself for my last property purchase too.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
]
] and calculate your current loan repayments at 7%, I think based on serviceability you will be struggling with a major lender, However,the Rams, The Rocks and the Citibanks of this world may approve the loan,
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