All Topics / Help Needed! / Help in accessing my equity

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of Mick KennyMick Kenny
    Member
    @mick-kenny
    Join Date: 2011
    Post Count: 2

    Hi guys I would like some help or steering in the right direction.

    I want to start an IP with positive cash flow properties but I don't have the savings for a deposit yet.

    I am self employed and my wife works part time. We have two young kids. Being self employed I have a low taxable income so combined with my wife's our taxable income would come in at around $70-$80 k.

    Our mortgage on our home is approx $220k and the market value at present is around $450-$500 k. So we are sitting on a lot of equity.

    We have little personal debt.

    Is there an easy way to access some of this equity for a deposit on an IP or would we be laughed at because of our low taxable income. Or should I concentrate on saving my butt off  instead.

    Thanks in advance

    Mick

    Profile photo of dezabilitydezability
    Participant
    @dezability
    Join Date: 2014
    Post Count: 16

    Hi Mick,

    I've got the exact same living scenario and finances as you (self employed, part time working wife, dependants and 220k mortgage with little savings)

    Depending on what you want to buy, I suggest seeing a broker as they will break down what you can afford and see which lenders would bite.

    I'm currently going through an application for a rural property investment and even though I had to jump some major hoops, 2 lenders didn't see a problem, just needed to provide more details and projections. 

    Hope that helps

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Hi Mick

    Welcome to the forum and I hope you enjoy your time with us.

    Making a few assumptions and running some quick numbers on what you would likely buy i think you certainly would be able to restructure your existing borrowing to allow you to release equity and purchase at least 1 IP (maybe more).

    Course would need actual figures and breakup but certainly have done harder deals.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    70k combine income is decent and is enough to draw out some equity…and given your trying to buy an IP – that's $15-20k worth of rent that you can add on to the cal ( for the new loan)

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Mick KennyMick Kenny
    Member
    @mick-kenny
    Join Date: 2011
    Post Count: 2

    Thanks guys, you have given me some more things to think about. I will start searching more seriously for an IP and keep a watch on the market.

    Mick

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Mick

    As others have said – it looks like you'll be able to purchase an IP. There might be some add-backs from your business that can improve your overall borrowing capacity too.

    I just set up an equity release and IP purchase for a fellow forum member in a very similar situation to yourself in terms of employment type, income and available equity – so it is possible.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Mick before you rush out and start looking for a new IP i would get your Broker to restructure the loan so that you have access to a sub loan too allow you to draw out the required deposit and also a pre-approval so you have confidence on what can be achieved.

    Not every lender will consider your set of figures the same so you want to position yourself to enable forward progression.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Yep, get your finances in order first as per Richards advice or you will end up putting unnecessary pressure on yourself and the broker. 

    If you don't have many debts then looks doable to me. 

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of vagirl2012vagirl2012
    Participant
    @vagirl2012
    Join Date: 2012
    Post Count: 47

    Some great advise from some experts here!  Thanks for sharing guys, you often save me from asking the same questions.

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.