Hi,
my husband and I currently have an IP without much equity in the property and own our own home valued at around $500,000.
We’d love to be able to buy more properties, but we’re not sure if any bank would lend us the money since we earn around $90,000 per year between us. Any ideas?I’m not a broker or anything but based on those figures you’d have a tough time even getting the time of day from a bank, let alone any money.
$90 000 a year is an absolute pittance, how do you guys eat?LOL g7 ! …
But seriously, LT64, you OWN your own home and earn 90k/yr which is much better off than most who are starting out like yourselves.
I wouldn’t worry at all about finance …
Gather all your information such as payslips from employment, asset list with valuses, property addresses.
Work out your vision, where do you want to be in 5 years – number of IPs, or setting up for retirement eg $yr needed.
Consider using the equity to set up a line of credit from the bank. Use the line of credit as the deposit(5%) & 15% of property loan, then set up a separate home loan mortgage for the 80% of purchase price. Use the line of credit for the stamp duty and conveyancing fee. You will need to carefully watch and note each purchase and deposit into the line of credit for taxation purposes.
Then approach a bank with your vision, asset list et.al, and a request for a line of credit. Request the limit they are willing to avail to you. You don’t have to use it all!
This technique avoids mortgage insurance but limits the number of IPs to purchase. Good excuse to have a rest while the IP values go up and then re-apply for an extensions to the line of credit.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
Hi,
thanks for your replies. The $90,000 icludes the income from the IP, and for that reason we’ve previously been told we don’t have enough of an income to buy any other property. We also have 2 young children which seems to seriously reduce the amount of money banks want to give you.
Landt64Hi Land,
Not sure who told you you couldn’t borrow anymore money – a bank employee? If so, contact a good broker (take you pick from those that regularly post here) and see what they say as they collectively and individually can/do have access to a number of lender’s loan products.
Some lending policies are a little more relaxed than others and you’ll find that if you have spare equity you can generally obtain more funds.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Landt,
I agree with Derek, there may be other options available to you, feel free to e-mail or call me with the relevant information and I will see if I can help you.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I was told by a major bank in central west QLD that they wouldn’t loan me money.
They basically halved my wage as it was made up of overtime (which is a regular part of my job), higher pay from relieving duties (another regular part of my work), and isolation allowance and rental assistance. By the time they finished I was apparently only earning $35 000 a year.
The funny thing was, I went to a branch of the major bank in Brisbane who said that they would lend me up to $400 000!!
Go figure
Hi,
thanks again for your advice. I went out this afternoon and bought Steve’s book, so maybe I’ll get in touch with one of the brokers shortly. I’m not looking for any less than 130 properties though!
LOL
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