My wife and I expect to retire in 8 years time and we are not sure to what extent the banks will come to the party with high debt, considerable equity but limited income.
Please see figures below. We are three IPs away from our plan.
Age now 51 Age: At retirement 2015 = 59
ASSUMPTIONS CG 9%
INTEREST = 7.5%
RENTAL YIELD =4%
PPOR purch 300k in 1999 and est val in 2015 = 1191 OWING 200 000
IP 1 purch 255k in 2002 and est val in 2015 = 781 OWING 270 000
IP 2 purch 285k in 2005 and est val in 2015 = 674 OWING 300 000
IP 3 purch 365k in 2006 and est val in 2015 = 792 OWING 380 000
IP 4 purch 375k in 2007 and est val in 2015 = 747 OWING 390 000
IP 5 purch 385k in 2008 and est val in 2015 =703 OWING 400 000
IP 6 purch 385k in 2009 and est val in 2015 =645 OWING 400 000
In 2015
TOTAL EST VALUE =5 533 000
TOTAL DEBT = 2 340 000
LVR = 42%
lOAN
[email protected]% = 175500
RENTAL INCOME @yield of 4% =173 680
Sundry costs LEVIES ETC. = 40k
Shortfall =42k
Living expenses for 2 in 2015 calculated on current amount of 80k x 1.03 pa
=101k
Will the lenders finance required borrowings of 143 pa, to maintain these expenses, given our only income is 173k rent?
Apologies if you have seen this posting on the main property page. It got buried in the middle of a CGT enquiry and I figured it belonged amongst the property finance threads.
All comments, greatly appreciated
Marco