Hi All
We have just been told by our mortgage broker that we dont have enough to buy an IP and a principal place of residence. Strange as we earn a combined income of 170k and have approx 80k in savings.
So now we are focusing on buying a POP.
We are thinking of buying a two bed terrace in sydneys south or inner west (interest only) and trying to convert it to three bedrooms, then live there for a year to get the CGT discount and sell on. We think the market is in our favour and these properties are always popular
I am aware that they can be a black hole when it comes to reno's so am wary.
If anybody has done something similar I would love to hear from them.
–
Get a second opinion on your borrowing capacity. Just in case
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
My dad, after 12 months, has finally had his plans for a 2nd storey on his terrace house approved. The 2nd storey will have a 3rd bedroom and 2nd bathroom. There were plenty of bridges to cross such as not being able to see into next door neighbours backyard, not being able to see the side street and plenty of other, but they got there just a little over what they had budgeted for. Before putting in an offer make sure your neighbours are nice and also know about your plans to renovate as the council will put the plans to them as well (might only be because the 2nd storey will have some sort of view into neighbours yards)
There block is 5.5m wide x 17.5m long. Will make for an interesting house
The house is in Sydney inner west, cant re-call the name of the suburb though
Chetnik
Wow you must have incredibly high liabilities or living costs.
Richard Taylor | Australia's leading private lender
Nope, we live pretty modestly. I think his thinking was that we didnt have enough deposit for both an IP and an expensive say 500-600k sydney house.
My thinking was that with current interest rates we could lock away an almost cash neutral IP and then concentrate on our own home. Fixed interest loan would be close enough we think for the rent to almost cover.
We are still thinking terrace (wifes an architect and she loves them) for our own house but the comments above are food for thought.
Dammit, just trying to a) buy our own place and b) take advantage of this good opportunity to invest.
Life wasn't meant to be easy eh
Sorry to doubt your current MB but i am not convinced that is right.
Obviously he has the benefit of the finer details but everything you have mentioned sounds good so far.
Many ways to skin a cat when it comes to serviceability.
Richard Taylor | Australia's leading private lender
Hi Richard
Happy to chat further. Please drop me a PM
You must be logged in to reply to this topic. If you don't have an account, you can register here.
