Hi all,
My brother in law is planning to buy property in Sydney (where he lives). He can borrow a LOC of $150k based on the equity in his home. His bank has told him they will lend him a further $750k to buy property with (both he and his wife are dentists with good cash flow). Therefore, he has $900k in total of borrowed funds to play with.
His plan is to buy one house in Sydney's inner west up to the value of $900k (ie, the most expensive house in can afford), and to hang on to it long term. It will be negatively geared (yields in Sydney 4% or less)
I was thinking that if it was me I might buy one house in Sydney's inner suburbs with say $550k, and then use the rest to buy a unit, also in Sydney's inner suburbs.
Does anyone else out there have any other ideas? Maybe a few years ago you could have gotten a block of flats in Sydney for ~$900k, but I don't think so anymore.
Cheers
John
My brother in law is planning to buy property in Sydney (where he lives). He can borrow a LOC of $150k based on the equity in his home. His bank has told him they will lend him a further $750k to buy property with (both he and his wife are dentists with good cash flow). Therefore, he has $900k in total of borrowed funds to play with.
His plan is to buy one house in Sydney's inner west up to the value of $900k (ie, the most expensive house in can afford), and to hang on to it long term. It will be negatively geared (yields in Sydney 4% or less)
I was thinking that if it was me I might buy one house in Sydney's inner suburbs with say $550k, and then use the rest to buy a unit, also in Sydney's inner suburbs.
Does anyone else out there have any other ideas? Maybe a few years ago you could have gotten a block of flats in Sydney for ~$900k, but I don't think so anymore.
Cheers
John