We recently purchased our first investment property for 300K with equity of 500K, as we did not have a deposit. Also our household income is $55K a year.
Since the purchase I am thinking of selling our first property and paying out approximately 200k on the 300K loan and using the remaing 300K to purchase two to three more properties with the aim of positive gearing.
I figure that I will need to borrow 220K for each property using 100k as a deposit.
Each property would be be able to generate $15K p/a in rent and interest only payments would be approx $12K p/a each..Leaving $3000K on each property to pay rates and maintenance
The suburbs I am looking in have great potential for capital gain due to being within 1KM to the coastline and 30 km out from the CBD. Long term growth is currently 12% p/a and rental yeilds have been increasing between 10 and 20% p/a. Vacancy rates are less than 1%
Does anyone know if it is possible for me to do this on such a low income??
Subject to other 101 details and timing (When interest rates incresae affordability rates also go up so the amount you can borrow goes down) of your purchase you should be able to show serviceability.
As stated this would depend on you other loans and liabilities, number of adults, children in the family, potential rent on the property etc etc etc.
Richard Taylor | Australia's leading private lender
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