Can I borrow any more?

Need to figure out serviceability for me and my wife (no kids)... the equity is there, just need to know serviceability?

Current situation: have an IP that me and my wife are half owners with my sister, we are wanting to buy out her half.

So income for me and my wife (my wife just has half of the rental income under her name as she doesn't have a job). Note this income includes the full rental income for the property we are buying out from my sister.

Me: $60 500 net job income & $42 250 gross rental income
Wife: $42 250 gross rental income

Total loans for me and my wife:
$1 164 000

And we are wanting to borrow $164 000 more.

Currently with westpac and if possible would like to stay with them as the existing loan for the property is with them. We get a 4.94% interest rate on our loans for the most part.

Any idea if we could borrow that money from westpac, or if maybe we would need to refinance the whole amount with another bank that will lend to us?

Thanks heaps.

Tim






MORE DETAILS IF NEEDED:

Borrowed:
PPOR: $412 000
IP 1: $432 000
IP 2: $160 000 (Half owned with sister, their half borrowed is $160 000)
IP 3: $160 000 (Half owned with parents, their half borrowed is $160 000)

Rental income:
IP 1: $710 per week
IP 2: $740 per week (note this rent is currently split with my sister)
IP 3: $350 per week (note this rent is split with my parents.

Job income:
After tax and hecs = $60 500

I could if needed, pick up another shift and push my after tax and hecs income to = $65 870. But I really don't want to pick up another shift.

I'm wanting to buy out my sisters half of IP2. Agreed value by us is $410 000.

So her half is worth $205 000.

I will have the 20% $41 000 deposit. That means I'll need to borrow $164 000 from the bank.
 
With Westpac, no.

Other lenders, yes.

The joint ownership with you sister and parents is causing you problems (I'm fairly certain you're already aware of this). It's a good idea to restructure away from this if you can.

Be aware there are probably stamp duty and capital gains implications, because you're changing ownership.
 
I am sure some brokers would reply soon. But if you had obtained these loans with your current incomes, you should be able to borrow the required amount.

Half ownerships won't do any good to you. It is good that you are trying to get out of one of them. Any chances of buying the half from parents as well?
 
With Westpac, no.

Other lenders, yes.

The joint ownership with you sister and parents is causing you problems (I'm fairly certain you're already aware of this). It's a good idea to restructure away from this if you can.

Be aware there are probably stamp duty and capital gains implications, because you're changing ownership.

Yeah I'll have to pay stamp duty and my sister will have to pay capital gains. From my understanding. Is that correct?

I'll shoot you a PM Peter and see if there is something you can sort out for me...again (although last time went surprisingly smoothly :)

And Singo the half ownership with my parents will eventually sort itself out. After the subdivision on that property, etc... we will sell all of that project up and my parents should walk away with $200 000 and so should we. Then finally we won't have any joint ownerships left at all so serviceability should be much easier to achieve in the future :)
 
Hit up Pete - he's provided some good initial advice.

Unless you need the face to face then Rolf is your man.

Cheers

Jamie
 
Back
Top