Finance for 2nd property

[shopgirl]

I purchased a PPOR 18 months ago. Current value $330,000, currently owing $280,000.

I would like to convert my PPOR into an investment property with IO finance. Ive spoken to a real estate agent and he feels I will be able to get $360 per week rent easily.

I want to purchase a 2nd property to use as a PPOR, with the plan that if I search high and low I can find something that needs some work. I would be looking in outer Western Sydney (penrith area).

Im wondering if any of the mortgage brokers out there would be able to give me any advise, mainly regarding how much I could borrow. My current income is $78,000. I have no other debts. Any advise would be great ! Im 52, just wondering if that will be held against me? I do have an exit strategy in mind....

thanks in advance to all those out in somersoft land !

 

[Rolf Latham]

I purchased a PPOR 18 months ago. Current value $330,000, currently owing $280,000.

I would like to convert my PPOR into an investment property with IO finance. Ive spoken to a real estate agent and he feels I will be able to get $360 per week rent easily.

I want to purchase a 2nd property to use as a PPOR, with the plan that if I search high and low I can find something that needs some work. I would be looking in outer Western Sydney (penrith area).

Im wondering if any of the mortgage brokers out there would be able to give me any advise, mainly regarding how much I could borrow. My current income is $78,000. I have no other debts. Any advise would be great ! Im 52, just wondering if that will be held against me? I do have an exit strategy in mind....

thanks in advance to all those out in somersoft land !

Hi SG

Age wont help, but life experience might .

Few things

1. Its likely you have paid Lenders Mortgage Insurance on your PPOR. That, and your numbers presented mean you are possibly "stuck" with ur current lender. Thats not an issue per se, hopefully you can get a valuation before application. on a 330 k val and 280 k lend existing , a 90 % top up will give u 17 k, which wont buy a whole lot

What did u pay for your place when u bought it pls ?

ta
rolf

 

[shopgirl]

Hi ! thanks for such a quick reply.
I paid $313,000. Yes, I paid LMI. My loan is with Suncorp.


Im looking to buy something very modest, around the $300,000 mark.
I have a big strong son living with me and he is very keen to give me a hand painting, decorating, building gardens etc. He is getting married in 12 months so I need to act fast (smile)
thanks in advance !

 

[Rolf Latham]

Hi ! thanks for such a quick reply.
I paid $313,000. Yes, I paid LMI. My loan is with Suncorp.


Im looking to buy something very modest, around the $300,000 mark.
I have a big strong son living with me and he is very keen to give me a hand painting, decorating, building gardens etc. He is getting married in 12 months so I need to act fast (smile)
thanks in advance !

Needs to be modest


Assume 12 000 for Stamps

Assume 2 k for costs

Assume 15 000 for deposit


Total input 29 k based on a 95 % lend.



Serviceability wise its technically possible, but I think we will struggle with equity and vals

ta
rolf

 

[shopgirl]

thanks Rolf, I appreciate that, I guess I need to do a bit saving !

 

[Jamie M]

thanks Rolf, I appreciate that, I guess I need to do a bit saving !

Is there any way you can add value to the current PPOR (without spending too much) so you can tap into more equity?

Cheers

Jamie

 

[shopgirl]

Hi Jamie, thanks for replying
MY ppor is only 5 years old and in perfect condition.
Not really anything I can do here that could add value.

I think I need to really work hard for 12 months and try to save as much as possible.

thanks for the interest, shopgirl