Firstly I would like to thank anyone in advance for maybe helping shed some light on what I should do. Currently I own a property which I bought for 130k five years ago, I had it revalued (bank valuation) two years ago which came in at 200k. I'd assume it should be worth closer to 250k now comparing it to other properties on the market nearby.
I recently spoke to an accountant who said we are at 6 oclock on the economic clock and the next five years would be a good time to buy some property. I have just returned from bumming around in europe and have finally got a job only paying 38k which will go up to 45k after probation period in 3mths. So the two options I see are:
Option One:
Kick tennents out of my house move in an renovate, improving the value of the property then maybe buying another one in the near future. I believe if I borrow an extra 30k and renovated the value of the property could be closer to 300k. It is currently rented at 245pw, which I think could also increase to round 280ish…Option Two:
Leave my house as it is, borrow what I can afford from the bank and try find another house which I could renovate.Idealy I would like to go into buying property full time as I think it would be much more fun and fruitful then being an underpaid sys admin! I hope this wasnt too long winded but would really appreciate any advice from the experts out there!
eski wrote:Firstly I would like to thank anyone in advance for maybe helping shed some light on what I should do. Currently I own a property which I bought for 130k five years ago, I had it revalued (bank valuation) two years ago which came in at 200k. I'd assume it should be worth closer to 250k now comparing it to other properties on the market nearby.
Look at what you owe and work out the cash flow. Can you afford another property? Take the cashflow figures to the bank lender to see what you can borrow once off probation.
eski wrote:I recently spoke to an accountant who said we are at 6 oclock on the economic clockWatch steve's video click on his face shown on the right of the screen near the top
eski wrote:and the next five years would be a good time to buy some property. I have just returned from bumming around in europe and have finally got a job only paying 38k which will go up to 45k after probation period in 3mths. So the two options I see are:Option One:
Kick tennents out of my house move in an renovate, improving the value of the property then maybe buying another one in the near future. I believe if I borrow an extra 30k and renovated the value of the property could be closer to 300k. It is currently rented at 245pw, which I think could also increase to round 280ish…Can you afford the mortgage repayments as you will have no rent coming in
eski wrote:Option Two:
Leave my house as it is, borrow what I can afford from the bank and try find another house which I could renovate.Idealy I would like to go into buying property full time as I think it would be much more fun and fruitful then being an underpaid sys admin! I hope this wasnt too long winded but would really appreciate any advice from the experts out there!
if you quite working you will find it hard to borrow money from lenders !
you probably can borrow up to 80% LVR . loan now plus future loan amount / property value = 80%
future loan can be used for deposit on second property.
serviceability worked out on rental income house one plus rental income house two plus your job income.
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