Confirming how much I can offer

[Qinau]

Hi all,

Could someone please do me a favor and check my rough figures to see if I've accounted for everything in working out how much I can afford to spend on my IP.

I have around $280k to spend all up, probably a bit more but I want to keep some savings on hand. If I take these into account

• House Insurance $1000
• Landlord Insurance $500
• Pest / Building Inspection $800
• Legal / Conveyancing $800
• Stamp Duty / Government Charges ~$12500 (Vic based on figure below)

It would seem I the most I could offer on a property to stay comfortable would be ~$265k? Does that seem about right? I'm not sure if I over or under estimated costs, or forgotten some altogether...

Any help appreciated.

Cheers

edit: Just looking at houses further out and not units

PS I used this page http://www.nab.com.au/Personal_Finance/0,,81258,00.html to estimate the Stamp Duty / Government Charges.

 

[boomtown]

I think you should get a mortgage broker to do these calcs for you?

 

[Righteous Toss]

How much deposit do you have?
Hows much rental will the Property take?
How much can you afford each week for repayments?

 

[chilliaa]

Keep a back up of 2 months rent.
ie prepay 2 months worth of rent ahead on your future loans (and make sure you dont draw down on it), or keep 2 months worth of rent in a seperate bank account.

 

[Qinau]

Oh sorry I think I might have worded my post the wrong way. This is to purchase an IP. I already have finance arranged with the bank, the $280k includes that and my deposit, and that's the most I want to outlay - at least initially.

I was hoping that I'd covered the things I'll have to pay in the short term, obviously along with the property. Does that make things clearer, or more mud like?