I would like to lend money to buy an investment property.
I have $20,000 loc for deposit i earn $40,000 and wife $32,000.
I have 3 properties value $640,000 owe bank $420,000,
New property $330,000 rent $455 per week
.
Q. how much can i borrow?Dom[biggrin]
How much rent do the existing properties get?
Children?
Cars?
Credit card limits?
Current lender?
Other debts?
Email if you prefer nt to post this detail.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
No car debts
7000 credit limit but $0 owing
2 children
no other loans
suncorp
commonwealth
mcquirieRent is $2200
Dom
A few comments,
You have forgotten to list your existing rent, assuming you are getting a 5% yield, this would be about $615/wk (this may be too generous?).
You should be able to service a new loan of about $290,000. If you did not have children, the figure would jump to about $360,000.
If you could borrow the required amount, as your deposit is not enough to get a 95% loan and pay costs, you would need to either increase your LOC if possible or cross securitise with one or more of your other properties. To cross securitise you would have to use the same lender.
These are just some quick and rough figures for you to look at.
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
Salacious,
With only 20K in your LOC for a deposit you will more than likely need to access the existing equity in your portfolio,
With Three different lenders your properties are not cross colaterised, but it may be beneficial to have your current structure/products and rates checked by a good Mortgage Broker, eg, Terry or Simon.It may be a good idea to reduce the limit on your credit card as you will be assessed by the Banks at 2% or 3% of the maximum credit card limit towards lending serviceability, regardless if you have a zero balance or not,
To give you an example, $7K @ 2% is calculated as a debt of $140 per month, and $2K @ 2% is $40 per month,The difference can sometimes mean a substantial increase in borrowing capacity.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Is it too much to suggest getting rid of one of the kids??? You’ll still have one. Just keep the favourite. I’m sure they’ll understand. [biggrin][blink]
(can you tell that I don’t have kids yet?)
Cheers
Stu
Stuart,
You’d have to tell the one you gave away, that you *gave away* the favourite- for his or her benefit. Otherwise, the unfavourite would feel bad. If you work it out properly, and ensure the kids never see each other again – so they can’t discuss it- everyone would feel it was win/win.
Oh, by the way, Stu- that electronic thought thing you have hooked up to my brain is making my head itchy
Oops [offtopic] Sorry Dom
kay henry
Sometimes it would be good to have no kids but only for a short time.
Kids keep me young “AND I LIKE THAT” and besides who would i leave my fortune to ,people on yhis forum mayby nah.
Thanks for the answers Mobile Mortgage,Terryw much appreciated, i can come up with 10% of $360.000 after reshuffling a bit.
So should be no trouble to move forward.
Dom[biggrin]
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