current scenario. pretty stable job in a stable industry. 1 income household. wife stay @ home mom with baby.
can now save between $2500 to $3000 per month ( completely paid down all bad debts, credit card,car etc., so redirecting same funds into offset now).
buffer atm is $20K (more overseas - but that is reserved for dire situations)
PPOR owe 280k, valued @ 370K
IP 1 owe 230K, valued @ 260K
my plan is to upgrade my PPOR ( from 2 BDR to 3 BDR ) by Dec 2014., by then my estimated savings would be approx $50K
IP 1 is + geared by approx $1000 per year after all costs including estimated maintenance.
question i had was (assuming i can borrow) invest in a IP now with potential for CG to use it to acquire the new PPOR ( and turn the current PPOR into an IP)
good thing is given the avg rent and IR, even my PPOR would be positively geared by about the same amount i.e $1000 to $1500 per year or more as it is newish ( 9 yrs old townhouse )
the cost of the target PPOR is $460K to $500K in todays $'s.
would the bank consider this too risky ? i was hoping i could turbo charge my borrowing capacity with a CG ( although just 18 months to 2 years) of the IP ( if i am able to acquire now)
...would love to hear your thoughts.
can now save between $2500 to $3000 per month ( completely paid down all bad debts, credit card,car etc., so redirecting same funds into offset now).
buffer atm is $20K (more overseas - but that is reserved for dire situations)
PPOR owe 280k, valued @ 370K
IP 1 owe 230K, valued @ 260K
my plan is to upgrade my PPOR ( from 2 BDR to 3 BDR ) by Dec 2014., by then my estimated savings would be approx $50K
IP 1 is + geared by approx $1000 per year after all costs including estimated maintenance.
question i had was (assuming i can borrow) invest in a IP now with potential for CG to use it to acquire the new PPOR ( and turn the current PPOR into an IP)
good thing is given the avg rent and IR, even my PPOR would be positively geared by about the same amount i.e $1000 to $1500 per year or more as it is newish ( 9 yrs old townhouse )
the cost of the target PPOR is $460K to $500K in todays $'s.
would the bank consider this too risky ? i was hoping i could turbo charge my borrowing capacity with a CG ( although just 18 months to 2 years) of the IP ( if i am able to acquire now)
...would love to hear your thoughts.
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