How much do you think i could borrow?

[Gordon Gekko]

Hi All,

I am sure this question has been asked heaps.

I haven't been to my bank yet, just after people thoughts

Income - $50k
No Debts
Credit Card - $7k limit (half owing)
No morgage - own our home. ($450k)
36y.o , Married - 3 young kids

1 IP - Value - $260k
Owe $80k
Rent income $830 per month
Positive geared - $300 per month

Wanting to buy 2IP - How much do u think i can borrow?

Any help would be great

Gordon Gekko

 

[Rolf Latham]

Hi GK

At the extreme I feel you could get you hands on around 1.5 mill based on your equity position, got to allow alittle for some costs of purchasing.

Ta

rolf

 

[Gordon Gekko]

WOW
I don't need or want that much
So you think that i am in a good position, even with my low Income.?

thanks for your response Rolf.

Gordon Gekko

 

[peteb]

ok rolf , a quick estimate of how much I could borrow please.

Income - $55k
No Debts
Credit Card - $11k limit (none owing)
Morgage $375K- own our home. ($600k)
40y.o , Married - 2 young children

1 IP - Value - $145k
Owe Nil
Rent income $680 per month

2 IP - Value - $155k
Owe Nil
Rent income $660 per month

3 IP - Value - $220k
Owe Nil
Rent income $980 per month

4 IP - Value - $260k
Owe $245K
Rent income $950 per month

Quick estimate please , thanks

 

[Gordon Gekko]

Hi Pete,

I am no expert but would you be better to get rid of that $375k morgage with some of that equity in your IP's???

 

[Rolf Latham]

Hi Pete

At the extreme once again becaise you have so much equity I would estimate > 1 mill is achievable.

Note that you wont get this walking into your nearest bank. equity based lends require careful use of lite doc loans and /or annuity based models as per Uncle Steve will make use of that dead equity.

I Agree with Gordon, have a long hard look at selling your Ips to a trust, thus releasing cash to pay donw PPOR debt.

I cant do the numbers this time of nite, but intuitively it seems the way to go.

Ta

Rolf

 

[D.T.]

Hi,

Geepers Gordon, you could go on an IP shopping spree if you wanted.

Rolf, is lending capactity on no/lite doc loans calc'd the same as with normal loans, when one has no equity to consider?

-Regards

Dave

 

[peteb]

the good thing is that I already have a family trust in place at the moment but it has no assets in 'it's' name. It is used via our company/business structure.
the determining factor in all this is to achieve a cashflow that supports the extra lending repayments PLUS achieve capital growth.
I suppose it all comes back down to the same answer, speak to Steve for the 'cash flow' solution ad speak to a 'Rolf' for the money.

 

[Rolf Latham]

Hi D2

Lite doc lending generally is a more "legitimate" form of lending where the lender looks at the deal more "wholistically". Straight out asset lends require nothing more than ID a clear Cert of Title and you are away, though they still like you to have a CRAA that is clear of major holes.

It is the equity that has been built up that gives these people the "golden glow" that assessors look for.

Without the equity, yes there are lite doc products that lend without much equity, but they are quite expensive, in rate, entry and exit costs.

Ta

rolf