Hey guys
Here goes if ppor is valued at $650k+ and has a debt of $400k
and ip is valued at & 550k and has a debt of $530k
And we have a combined gross income of $120k not including ip income ! Of $510 p/w….. And only other debt is cc of $8000 which is paid in full = zero owing !
Is a second ip achievable
ThanksTotal property 1.2M
Total loans 930kTotal lending is currently at 77.5% (930k/1.2M).
Funds availalbe is approx 30k if increased to 80% (960k).With the additional income from the 2nd IP my figures would show servicing is boarderline but that’s assuming no kids or other debts.
Gearing is getting high which obviously means higher risk.
It’s a maybe from me…
Ps also assumed credit card was closed and income was split 50% for tax purposes.
There are a few variables so take it with a grain of salt.
Banker
Thanks banker
May I ask your opinion on C/Growth over the next there years ????
JAS….P.s my ppor Is on the central coast on the edge of Tuggerah lake.
And ip is in silverwater in Sydney = new 3 bed + study townhome
JASProperty is not an asset you should expect Cap growth over a 3 year period. Might be up. Might be down. 3 years is speculitive.
Too many people focus on housing shortages as guarantee growth will continue. I would say is aust it is more a matter of avaialbity of funding.
E.g.
10 people at auction with approvals ranging from 440k to 550k.
10 people at auction. 3 can’t get finance and the other 7 have approvals from 350k to 450k.Same supply and demand. Less money in the financial system.
Rates have increased, default rates are increasing, uncertain times internationally.
My advise is not to be too aggressive on your gearing, make sure your cashflow is strong and focus on 10 year hold stratergy if you are relying on cap growth.
Re the gearing. I don’t mind being in debt up to my eye balls. Key is to understand the risk. Don’t gear up to the eye balls because you think you can’t lose in property.
Banker
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