Hi all
Can anyone give me some advise, I am still unsure how to increase my investment property portfolio without having a huge debt, the books I read all make sense and are great but I must be slow.
I purchased a block of land which increased in value by $50000, I used this equity to obtain finance to pay off my initial investment and purchase another block of land and to build a house, but the bank took both property titles as collateral. Once the house is completed I am planning to rent it out. It is estimated that the value of this property will have increased by $60000 – 70000 to $350000, I owe 280000, so I could refinance and hopefully free up / release the title on the first block of land and purchase more property, but I do not know how I can afford to cover any more loans, my current loan for the investment property will cost me even with weekly rent of $200, so I guess it is a negative geared property.
Am I on the right track?
Thanks Martine
[confused]Hi Martine,
you are a little vague on the details. Perhaps if you’d list each individual property and its related figures it would be easier to give you an idea of what is possible. It might also pay to put this question up in the Finances area as that is what you are generally enquiring about.From what I can see, it depends on two things:
1.can you service another loan (what is your DSR)?
2. once you have the true value of the latest development – what risk level are you looking to go to (LVR of 80%/95%)?
These will affect your borrowing capacity and strategy. For example:
you wish to get ahead NOW, so you chose to go to a LVR of 95% (and pay the LMI) so using your figure:
Total $350,000 @ 95% = $332,500
less the current mortgage of $280,000
=> 332,500-280,000 = $52,500 available for further investment (less LMI).Just to give you a quick idea of how it might go for you.
Try the finance section, the Mortgage brokers are far better at number crunching and financial advice than I.
Cheers
C@34
Thanks Calvin@34
I appreciate your help, I will post in Financial
Martine
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