Hi guys, I'm new to property investing and just recently found this forum, which is a great bastion of information. I have a few questions and would appreciate your opinions.
Firstly, our situation
We are interested in buying an investment property around the 200-250k mark. I am viewing this as a chance to go get our "foot in the door".
Wife's income - $75k. Due to salary sacrificing arrangements her tax is quite low and take home income is around the 60k mark. She has been in the same job for more than 3 years
My income - only 5k per year in interest
Our savings: 130k.
Our rent expenses: 360/wk. Other living expenses are about average.
Credit cards:
We have never had a late payment
Wife: one cc with a 3k limit
Me: total of 16k limit, willing to drop this or even cancel the cards if need be. We don't use credit cards for credit per se, we use it for frequent flyer points and good exchange rates for online shopping/holidaying.
No debt aside from cc expenses.
Questions:
1. Considering We have only one income, is it realistic to expect to borrow approx 150k for a property?
2. Investment properties, unlike PPORs, provide rental income. So is borrowing capacity greater for investment properties than for PPORs?
I won't take anything anyone says as financial advice, so please be open to telling your opinions!
Firstly, our situation
We are interested in buying an investment property around the 200-250k mark. I am viewing this as a chance to go get our "foot in the door".
Wife's income - $75k. Due to salary sacrificing arrangements her tax is quite low and take home income is around the 60k mark. She has been in the same job for more than 3 years
My income - only 5k per year in interest
Our savings: 130k.
Our rent expenses: 360/wk. Other living expenses are about average.
Credit cards:
We have never had a late payment
Wife: one cc with a 3k limit
Me: total of 16k limit, willing to drop this or even cancel the cards if need be. We don't use credit cards for credit per se, we use it for frequent flyer points and good exchange rates for online shopping/holidaying.
No debt aside from cc expenses.
Questions:
1. Considering We have only one income, is it realistic to expect to borrow approx 150k for a property?
2. Investment properties, unlike PPORs, provide rental income. So is borrowing capacity greater for investment properties than for PPORs?
I won't take anything anyone says as financial advice, so please be open to telling your opinions!
