Nope, they aren't serviced apartments JacM.

Thanks Jamie, do you see any negatives from from this sized unit? Or anyone else for that matter

Thanks for your responses guys!

so given the above example, taking the rent into account (using the ANZ calc) I would have a new wage servicable salary of 63, 652 to use for a new loan?

Thanks Richard, I cut alot of corners and over simplified the scenario so I can understand how equite and rental income work with borrowing capactity.

To summrise, equity is unrealised cash and rent adds to my income to provide my borrowing power?

Thanks for your help Richard

Thanks for the reply Richard.
I was reading a book and it said the banks will only take 80% of the equity in your property, hence the 30k equity I added onto the borrowing capacity, which as you said doesn't increase it.

I guess what I was asking was after the above workings out would I be able to purchase a property of up to 312,000, assuming the ANZ calc is correct?

If the equity you mentioned (44k) not borrowing capacity is it still "unrealised" money I can utilise?

This isn't based on any real life situation, just trying to figure out the whole using equity to continue purchasine property.

Also, the way I added 80% of the rent as income and worked out the new borrowing capacity, is that correct?

Thanks for your reply Richard! Appreciate it

Thanks guys, there is no body corp as it is only 2 units on the block. I will look into this further

Correct, I probably shouldn't of posted the address. With that said im not necessarily in the best posituion to invest, so im not too phased as to whether I putr an offer in or someone else purchases.

I think more what I was asking is if this property would pose a higher risk. I don't want to make a bad decision for the first IP I buy. Do you think this would bring a higher risk then any other property?

Thanks heaps though guys .

Thanks, shot you an email

Interesting, thanks for the reply Michael.

Im currently living in Melbourne by the way, so I have worked out that I would be paying back $384 a week with an interest of 7.1% on a loan of 280k or there abouts. Which is why I have thought of buying an IP in Tas possibly before I by a PPOR in Melbourne.

I see where your going with this it would decrease it my borrowing power but with that said, the IP would be basically paying itself, with some help from me under $100 a week i would be aiming for, with all costs factored in.

So therefore, I would be saving $39+ dollars rather than owning a PPOR, would these calculations be correct? And that isn't factoring in plant depreciation.

Does this sound right / a better option to start (buying an IP first)? Or have I completely missed the plot somewhere along the line and haven't factored in hidden expenses.

Thanks for all your help guys !! Just a few more questions if thats ok?

What I stated regarding finding a property that will have good future growth, is this correct? I know nothing is certain, but would what I said give a higher chance of a good capital growth over x number of years? And is there anything else that you should be looking for in the property or suburb that will give a better chance of good growth?

Chris

Nice one Jamie!

What specific things do you look for with your strat? Do you look for slightly dated appliances / kitchen / bathroom / wall colours etc or is there a lot more to it?

Thanks Jamie, I have actually had a look at your FB page and the website. Very informative information. Thanks for your help again!!  I liked your FB for you a couple of days ago as well.

Congrats your the place you have just renovated, I had a look at the pics and it looks great!

Chris