HI all, due to number of setbacks have had to put investment plans on hold however am now hoping to go again, would really appreciate any advice on loan options available, realise this may overlap with some other similar threads but have few extra details thank you!
Quick numbers as below:
My Total income: $60,000- 65,000 (Wife currently making another $40k plus and rising which I understand we can't count until bankruptcy finished, however it definitely helps keep my serviceability up)
Have a $3500 credit card which is maxed from reno, funeral etc but being paid down soon, no other loans or debts. I’m 33yr old, wife 32, with 2yr old dependent child- no plans for any more. All bills are paid ahead of time/up to date, we have no flexi-rents, interest free terms, appliance leases etc.
Also have $25k cash. Should I put in redraw for time being?
Current PPOR:
Purchase price 2011: $260k
CBA Home loan on 3bd, 2 bath, 1 garage brick and tile: $197, 111
Current Repayments: $700/paid fortnightly (I+P). ($350/wk)
Interest: currently 5.45% p.a
Has had both bathroom and ensuite full reno, brand new kitchen, new paint, flooring whole house, roof resto etc.
Revalue Home: $290,000 (hopefully!)- comparable sales in area sit between $260-$300k, house is above average in position, size and features.
What we want to do is make current PPOR an IP, rent it (would be close to CF neutral on IO up to about 6%, rent would be about $230-250/wk, leave minimum equity in it and use equity plus $25k cash to fund new PPOR, move in with folks for free while it is built, will require $430k for our goal of building a prefab modular home on a vacant block. Have spoken to town planner, council etc, is all very doable at this price. Long term we want as much equity as possible as fast as possible to eventually partner with dad to do a townhouse build on his massive block in Kiama, I am now 1/4 owner with mum having passed away earlier this year, building looks like the quickest way to get the equity up.
If anyone is still with me after that essay, firstly- thank you! What we would like to know is our approximate borrowing power, whether anyone has had to make same decision- I see other prospective PPOR to IP threads in here, however how has it worked out for people who have done it? Are we having ourselves on and should we just shelf investing until wife out of bankruptcy- but could be few years of missing time in market? Or is using the serviceability I have now to get started sooner the best bet, even if we can only access smaller funds and have to start with a unit reno or something instead- although I just don’t see the required fast CG to make it work with our longer plan? A massive thank you in advance to anyone willing to share, all knowledge greatly appreciated!
Quick numbers as below:
My Total income: $60,000- 65,000 (Wife currently making another $40k plus and rising which I understand we can't count until bankruptcy finished, however it definitely helps keep my serviceability up)
Have a $3500 credit card which is maxed from reno, funeral etc but being paid down soon, no other loans or debts. I’m 33yr old, wife 32, with 2yr old dependent child- no plans for any more. All bills are paid ahead of time/up to date, we have no flexi-rents, interest free terms, appliance leases etc.
Also have $25k cash. Should I put in redraw for time being?
Current PPOR:
Purchase price 2011: $260k
CBA Home loan on 3bd, 2 bath, 1 garage brick and tile: $197, 111
Current Repayments: $700/paid fortnightly (I+P). ($350/wk)
Interest: currently 5.45% p.a
Has had both bathroom and ensuite full reno, brand new kitchen, new paint, flooring whole house, roof resto etc.
Revalue Home: $290,000 (hopefully!)- comparable sales in area sit between $260-$300k, house is above average in position, size and features.
What we want to do is make current PPOR an IP, rent it (would be close to CF neutral on IO up to about 6%, rent would be about $230-250/wk, leave minimum equity in it and use equity plus $25k cash to fund new PPOR, move in with folks for free while it is built, will require $430k for our goal of building a prefab modular home on a vacant block. Have spoken to town planner, council etc, is all very doable at this price. Long term we want as much equity as possible as fast as possible to eventually partner with dad to do a townhouse build on his massive block in Kiama, I am now 1/4 owner with mum having passed away earlier this year, building looks like the quickest way to get the equity up.
If anyone is still with me after that essay, firstly- thank you! What we would like to know is our approximate borrowing power, whether anyone has had to make same decision- I see other prospective PPOR to IP threads in here, however how has it worked out for people who have done it? Are we having ourselves on and should we just shelf investing until wife out of bankruptcy- but could be few years of missing time in market? Or is using the serviceability I have now to get started sooner the best bet, even if we can only access smaller funds and have to start with a unit reno or something instead- although I just don’t see the required fast CG to make it work with our longer plan? A massive thank you in advance to anyone willing to share, all knowledge greatly appreciated!