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  • Profile photo of lbluedentolbluedento
    Participant
    @lbluedento
    Join Date: 2009
    Post Count: 98
    December 13, 2010 - 12:55 am

    We have no PPOR as we rent at $320/wk
    We have $75K equity in IP 1 and we owe $175K on it. ($35K of the $75K is surplus payments)
    We have $15K equity in IP 2 and we owe $230K on it
    We have $10K equity in IP 3 and we owe $94K on it
    We have $27k in savings in an offset account

    We earn:
    Income (added together) $5214/fortnight been in same industry for 15yrs although only 6mths at present place of employment.
    Rental Income total on the 3 IP $1360/fortnight

    We have no store cards and an overdraft limit on our debit card of $1500 (although if it helps we can get rid of it as it is only in case of emergencies)

    We have no personal loans

    We have 2 dependents under the age of 6

    We are looking at a property that is advertised at $159 000 we would only offer up to $140 000. The rent at present is $180/wk, we plan to renovate and have been told to expect between $220-240/wk after the renos we have planned. The block is also subdividible without removing the original house, according to council.

    At the moment we are putting $250-290/wk into our offset account so we can demonstrate a record of savings.

    Is it worth us pursuing the house or would the banks knock us back at the moment as we haven’t got more equity in our other 3 properties.

    Thanks

    Ruth

    Profile photo of j900j900
    Participant
    @j900
    Join Date: 2008
    Post Count: 56
    December 13, 2010 - 1:54 am

    Ibluedento,

    Interesting portfolio. Based on my calculation the rental income is roughly break-even. Or did you mean $1360 is the net income after paying off mortgage? (too good to be true but I don't want to rule this out yet…)

    Do you mind telling us where your properties are? Or general direction of it? 

    I'll let the experts to comment on whether you should pursue. For me if it's positively geared and have at least moderate outlook of capital appreciation it's definitely worth some consideration.

    Profile photo of lbluedentolbluedento
    Participant
    @lbluedento
    Join Date: 2009
    Post Count: 98
    December 13, 2010 - 2:38 am

    Thanks for your comments j900

    The rental income on the 3 IP is $1360 – pretty much break even. Two of them used to be our PPOR (at different times), so they weren’t bought with positive gearing in mind. All 3 IPs are in Albury-Wodonga and the other property is in Horsham, so regional Vic.

    The new property isn’t great as far as being cashflow positive in its present state but what attracts me is the potential for renovation to increase yield and also the possible subdivision.

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