Hi
Before I head off to see the banks I would like to see if I am wasting my time or not in thinking about an investment property at this stage.
My situation
House valued a few months ago for $320,000 by the bank. Just did $40,000 worth of renovations. I owe 200,000 and make about $83,000 a year. Does this look like enough equity and income to get an investment property or should I put my dream on hold and wait another ten years when my house is paid off.
Thanks
BladeHi Blade,
Not a broker – so take what I have to say with a grain of salt.
based on value of $320K and debt of $200K you have $56K of useable equity going to an 80% lend. That is also assuming your $40K improvement are not on another loan somewhere.
So from an equity perspective you are fine. Income also looks strong to me but then I don’t have access a fancy calculators brokers have.
We faced a similar dilemma (invest or pay off) a few years ago and after some number crunching realised that we would be sometime paying off the home before we could start accumulating assets – and as time passed we would be closer and closer to leaving the workforce and as such would have less time for the assets to grow in value.
At the end of the day we invested and are ahead by a considerable margin as a result of that decision.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
As Derek Calculated you have atleast $56k equity to invest. one can say more after looking at your full postion. But just looking at your salary you should be able to borrow more to invest.
according to me one should invest if got equity.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]NZ loan pre approval from austrlia in 48 hours
Blade,
It depends on how much you want to borrow.
But you will certainly be easily able to borrow enough for an IP of some description.
Without knowing other financial detail I am speculating that you could buy something up to around the $250-300K mark.
However I cannot be accurate without knowing more.
All the bes,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Blade,
Sounds like you are the perfect candidate for an IP.
My advice is – see a broker not a bank.
Ciao [
]Liz
Mortgage Lender
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