hi everyone ,
we live in a 3 bed house outer west of sydney. i have nearly completed a reno on it. property is worth $320,000 and our morgage is $85,000 so we have a bit of equity to use.
my question is should we rent our house or sell it and get another reno project ,then use the equity and loan for IP , we have a okay on a loan for $250,000 including equity.just using my wifes wages , as i have just started to work for myself. this is our first time in looking for IP .we are looking med-long term. many thanks leeAssuming the bank will lend on 80% you should theoretically have $171,000 available to you… seems a bit strange that your total loan available is only $250,000 but they are an unpredictable bunch….
That said, $250,000 should be able to pick up a house in the western suburbs and a townhouse/unit a bit closer in. The problem with Sydney is that yields are not fantastic at the moment (its looking more positive though with the rental shortages)
Have you considered looking further afield. There are more affordable captial cities than Sydney where your investment dollar may go a bit further.!!!
That is of course entirely dependant on what your investment goals are. Cashflow ? Captial Growth? Both? Neither
The first question should be an introspective look – What are you trying to achieve?
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