I
IRR
Guest
Hi everyone,
Thanks to everyone who has been posting on this excellent forum. I have been reading here for a while and now doing numbers to buy the next IP.
Background
Wife and I are self employed and run a small company overseas. Combined Australian source income was $55k in FY 08-09 and $70k in FY 09-10(directors fees from our Aussie co). We are non-resident (for ATO) citizens.
Have a 2BR unit in Sydney's inner west returning $380/wk gross rent. We have enough money in offset a/c to pay it off. Bought in 2004 for $350k, current value should be around $400-420k.
Also have a 1BR unit in Sydney's inner east with views+parking owned throuh HDT. Earns gross rent of $480/wk. Owe $350k fixed for 2 more years. Bought in 2006 for $450k, should be around $500k now.
Objectives
1. Buy an investment house ( 2/3 BR duplex/terrace/townhouse) in inner west/Sydney for capital growth. Budget $650-700k, buy in own names. We need to get preapproval to be able to seize any good deals that present themselves. Preferably borrow 80%LVR 3-5 yr fixed.
2. Use equity from inner west unit as deposit for new IP without cross collatoralizing (amount in offset is not enough for this)
3. When we need to buy PPOR on return to Sydney (no fixed date as yet, not next 2-3 yrs) use equity from IPs to raise a large deposit for PPOR.
4. Continue to add to portfolio
Questions
1. How much can we borrow against inner west unit and new IP?
2. Is 80% LVR possible against inner west unit and new IP? (will it need LMI?)
3. What best rates are available for our situation?
4. When we stop earning director's fees from Australian co (FY 10-11 onwards), what options will be available to continue to build portfolio? Will we have to use low doc?
Any suggestions/advise would be welcome.
Thanks to everyone who has been posting on this excellent forum. I have been reading here for a while and now doing numbers to buy the next IP.
Background
Wife and I are self employed and run a small company overseas. Combined Australian source income was $55k in FY 08-09 and $70k in FY 09-10(directors fees from our Aussie co). We are non-resident (for ATO) citizens.
Have a 2BR unit in Sydney's inner west returning $380/wk gross rent. We have enough money in offset a/c to pay it off. Bought in 2004 for $350k, current value should be around $400-420k.
Also have a 1BR unit in Sydney's inner east with views+parking owned throuh HDT. Earns gross rent of $480/wk. Owe $350k fixed for 2 more years. Bought in 2006 for $450k, should be around $500k now.
Objectives
1. Buy an investment house ( 2/3 BR duplex/terrace/townhouse) in inner west/Sydney for capital growth. Budget $650-700k, buy in own names. We need to get preapproval to be able to seize any good deals that present themselves. Preferably borrow 80%LVR 3-5 yr fixed.
2. Use equity from inner west unit as deposit for new IP without cross collatoralizing (amount in offset is not enough for this)
3. When we need to buy PPOR on return to Sydney (no fixed date as yet, not next 2-3 yrs) use equity from IPs to raise a large deposit for PPOR.
4. Continue to add to portfolio
Questions
1. How much can we borrow against inner west unit and new IP?
2. Is 80% LVR possible against inner west unit and new IP? (will it need LMI?)
3. What best rates are available for our situation?
4. When we stop earning director's fees from Australian co (FY 10-11 onwards), what options will be available to continue to build portfolio? Will we have to use low doc?
Any suggestions/advise would be welcome.