Brokers, what sort of deposit would I need for this?

[want2bewealthy]

Well heres an interesting question,

Im looking to buy a PPOR but I want to rent it out first for a little tax break and to help make higher repayments, Im looking at a P&I loan,
I have a budget in mind and want to know what my lending capacity is roughly and what Id need to go through a 380k purchase.

I currently have 1 rental property on IO,
Id rather not discuss my whole situation on the forum, would prefer to private message all my details through,

is there anyone willing to help me out on some figures?
thank you.

 

[Qlds007]

W2W

Are you sure you want to buy it as an IP first rather than a PPOR (claim the FHOG assuming it is your first PPOR and possible capital gains tax relief) and not the other way around.

Assuming that credit and serviceability are ok then upto 100% LVR is possible however 95% gives you more options and choices. Personally i would favour the IO route with the 100% offset account to provide more flexibility however this is a personal decision.

There are plenty of variables but nothing is beyond the realm.

 

[want2bewealthy]

Thanks for your reply,

Im still unsure at what my servicibility actually is because Im a relatively low income earner and Im not sure I can even afford the repayments on my own so I was wanting to talk to someone more in depth,

thanks again.

 

[alexlee]

Do you really want to saddle yourself with a big PPOR mortgage this early on?
Alex

 

[Qlds007]

If you want to give me some figures and i like any other broker can give you some serviceability options.

Dont forget big difference between what the Bank will lend you and what you can afford to pay back.

 

[Rolf Latham]

Hiya Richard

Dont forget big difference between what the Bank will lend you and what you can afford to pay back.


Very very appropriate in many cases.....................

ta
rolf

 

[Finance guru]

Hey W2W

For a rough idea of what you can borrow, have a browse around some of the banks websites. Most of them have calculators that you can use to get a general idea of your borrowing capacity.

But Richard and Rolf have hit the nail on the head with servicibility. What the bank is willing to lend you and what you're comfortable paying back are two completely different things.

As to how much the purchase will cost you? We generally find that purchasing costs are around 5% of the property value. So in your case, to purchase a property of $380K you will need $399K.

Do feel free to msg us privately and we can run a calcuator for you on what you can borrow.

Cheers