have a house worth 700,000 with a mortgage of 300,000 have an income of 80,000p.a. how do I get started with ip’s

On the surface Sunni1 you are in a good position to take advantage of some of the many opportunities at the moment. 

Without paying mortgage insurance work off 80/20 ie.,
Your existing property is worth $700K
Thats a lending value against it of $560K
Less the $300K you are already using
Leaves $260K to use towards your property investment portfolio

A great start!

So lets say you find a house or house and land for $500K
Assuming everything else (your servicing) is approved the bank will lend you up to $400K (80% of $500K)
Which means that you put in the other $100K plus any purchase expenses.
That then leaves you with $160K of equity left in your existing property to go again….

First however, what are your goals?  Do you want to buy and hold for 20+ years with the view of a normal age retirement or be a more active investor looking for shorter term equity gains and make investing / developing your full time gig within a few years?  Is depreciation on a new property important to you or the cash flow of an older property?  Do you have a preference for regional or metro (benefits in both)?  Do you want to put all your eggs in one basket with 1 higher quality property or development or to buy multiple?  Lots of questions for you to work thru…. 

In terms of financially what you would be approved to do I'd start with a visit to your local bank (if you have a good person you know there already) or there are plenty of good brokers about – many on this site.  You could also take a look at some of the major banks websites for a guide – they all have calculators.

If you'd like some specific thoughts on your situation, feel free to contact me. 

Kind regards

Meg

Hi Sunni1

Once you have found an area you want to invest in I would shoot Jamie an email ([email protected])  and he can structure your finance correctly from the start. Brokers are generally a free service so you are mad not to use one!

I just wish someone told me that before I went straight to the bank for my first IP! Now my loans are crossed as i was young and dumb and believed the bank manager had my best interests at heart (haha!) Am now going through the process of uncrossing before I can buy my second IP! Lesson learnt I guess!

Goodluck with it all,

Nathan

Good advice from Meg.  I can't add much to that.

I can recommend a really good mortgage broker if you need one.

Hi

Jamie m is on the money. Investment ion property is not to be done ‘just because u you can”

You gotto have a plan to make money from the ip based on a strategy of either cash plus, add value or subdivision otherwise you will be like a mouse on a property treadmill ( should TM that btw)