We own a PPOR (bought Feb 2008) for 350K ... owe about 330K on it with CBA with 2 loans:
Loan 1 : Fixed 230K @ 8.4%
Loan 2 : Variable 100K
Our annual income is 165K exclusive of super; we borrowed below our borrowing capacity to leave a room for an IP which we are considering buying in the next 1-2 months. (Looking for a 3 bedder townhouse in & around Runcorn, Brizzy which has decent rental returns)
We do not have any significant equity in the property to use for our IP. So that leaves us with an option of going for a new loan. We have saved up 5% deposit + SD & Legals for a 300K property. The money currently sits in the offset a/c (MISA)
Can some of the experienced forumites help us with:
1) A reality check : Whether we are right in going for an IP in our current situation ....we have modelled our cashflow & are comfortable with cost of ownership of upto $ 200/wk without compromising our lifestyle.
2) Would we get a loan with an LVR of 95% considering our circumstances?
3) Any financing ideas ?
4) Any better/ alternate strategies ?
Thanks