All Topics / Finance / How much could be borrowed?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of Property WAProperty WA
    Member
    @property-wa
    Join Date: 2005
    Post Count: 132
    February 16, 2006 - 4:40 am

    Hi,

    Quick question for any brokers out there –

    Property Value = $240,000
    Owing = $178,000
    Income = $70K-$85K net
    Deposit = $4K or 5K

    What price range could be looked at for the next IP?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 16, 2006 - 5:03 am

    WA

    To give you an estimation of your borrowing capacity can you tell us a little more:

    1) Existing property = PPOR / IP
    2) If IP rent = ?
    3) Income 75-85K How such a broad range. Surely it is either 75K or $85K Tax is Tax.
    4) What gross rental yield are you expecting ?
    5) Would you be redrawing some funds from your existing property to offer as a deposit or are you seeking 100% standalone IP deal.

    Richard Taylor
    Residential & Commercial Finance Broker **Lodoc Commercial Loans from 7.39%**
    Licensed Financial Planner
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Australia's leading private lender

    Profile photo of Property WAProperty WA
    Member
    @property-wa
    Join Date: 2005
    Post Count: 132
    February 16, 2006 - 5:21 am

    Hi Qlds007,

    I’ll try answer as best I can (thanks for reply too),

    1) Existing isPPOR
    2) N/A
    3) $75 to be on the safe side
    4) Rental income estimated at $200 p/w
    5) Not to sure yet, would look at both options (ie 100% loan for the IP or redraw the $60K equity or part thereof)

    Thanks again Richard

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 16, 2006 - 6:08 am

    Assuming you are single and have no dependants or any other liabilities other than the PPOR then at least $500K should be quiet easily achieveable for an IP

    It will vary considerably from lender to lender but i have taken a nice straight forward conservative approach.

    Richard Taylor
    Residential & Commercial Finance Broker
    **Lodoc Commercial loans from 7.39%**
    Licensed Financial Planner
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Australia's leading private lender

    Profile photo of Property WAProperty WA
    Member
    @property-wa
    Join Date: 2005
    Post Count: 132
    February 16, 2006 - 6:28 am

    Thanks a heap Qlds007,

    Much appreciated!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 16, 2006 - 6:35 am

    Pleasure as i say the amount will vary from lender dependant on other issues but maybe a guide for you.

    Richard Taylor
    Residential & Commercial Finance Broker
    **Lodoc Commercial loans from 7.39%**
    Licensed Financial Planner
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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