Mortgage brokers

B

Brian84

Attn mortgage brokers I am new to property investing and I would like some advice. I currently live in prestons in western Sydney, my ppor would have atleast $130,000 equity.

What would be the most useful way to use this equity, what could I afford with this amount with not much cash flow. Where would be a good place to buy.
 
20344514_269ab88078.jpg


I think you'll find having such an open ended question won't result in the quality gems of information which will help you make informed decisions in investing.

Have a chat with a broker regarding your *specific* situation and they'll know doubt be able to help establish what your goals are, the challenges you may face and how the finance will have to be aligned to meet your investment journey.

There's plenty of great local and interstate brokers on here to choose from, spoiled for choice. :)
 
Brian84 said:
Attn mortgage brokers I am new to property investing and I would like some advice. I currently live in prestons in western Sydney, my ppor would have atleast $130,000 equity.

What would be the most useful way to use this equity, what could I afford with this amount with not much cash flow. Where would be a good place to buy.
Click to expand...

As others have said, speak with a few mortgage brokers around SS. They are a help for sure. I've put my foot in and have since acquired 2 IP with the 3rd one coming next month.
 
Brian84 said:
Attn mortgage brokers I am new to property investing and I would like some advice. I currently live in prestons in western Sydney, my ppor would have atleast $130,000 equity.

What would be the most useful way to use this equity, what could I afford with this amount with not much cash flow. Where would be a good place to buy.
Click to expand...

Hi Brian.

Im from sydney, PM if you need recommendation to a MB.

Leo
 
Brian84 said:
Attn mortgage brokers I am new to property investing and I would like some advice. I currently live in prestons in western Sydney, my ppor would have atleast $130,000 equity.
Click to expand...

Hiya and welcome

How are you calculating equity?

There's a difference between "actual" equity which is the value of your home minus the loan and "accessible" equity which the bank will actually allow you to borrow.

Thanks cjay - I feel like heading to the beach now.

Cheers

Jamie
 
Hi Jamie,

I am calculating equity being conservative by getting current comparable sales which are 640-650k, I have a mortgage of 430k so say 640-430= 210 equity then I take off 20% because the banks only lend upto 80% of equity so that would be 168k. I said 130 just to be conservative even though those properties were single garage on smaller blocks. My house is double garage and I'm putting in a 3rd garage and I have a pool as well where the other properties didn't.

Correct me if I'm wrong for working it out that way.
 
Brian84 said:
Hi Jamie,

I am calculating equity being conservative by getting current comparable sales which are 640-650k, I have a mortgage of 430k so say 640-430= 210 equity then I take off 20% because the banks only lend upto 80% of equity so that would be 168k. I said 130 just to be conservative even though those properties were single garage on smaller blocks. My house is double garage and I'm putting in a 3rd garage and I have a pool as well where the other properties didn't.

Correct me if I'm wrong for working it out that way.
Click to expand...

Hey Brian

Take 80% of your properties value - which is $512k

Subtract your current loan of $430k from the $512k and you've got $82k in accessible equity.

Note: That's taking your borrowings up to 80% - some lenders will allow you to go higher than that but there's LMI involved.

Cheers

Jamie
 
Hi Brian,

As Jamie has pointed out, the equity you can use is not the difference between what the house is worth and what you owe. Lenders won't allow you to borrow 100% of the property value, thus the equity you can use is restricted.

The best thing to do from where you are is to first discuss your situation in detail with a broker so you understand your limitations from a lending perspective. Once you understand this, you can start to develop a strategy for what you can do initially. This will then give you some direction on what and where to buy.

Brokers can't tell you what to buy. Lot's of people ask me where my clients are buying right now, the simple answer is Adelaide and Brisbane. People have been buying there for years and I do worry that perhaps these areas are getting somewhat over heated.

I also know what I've been investing in, but my strategy is somewhat different to that of many of my clients.

Good brokers will be able to discuss various strategies with you and perform lending projections around those strategies. The forum is a great place to read about what people are doing in general and to create ideas from this that you can use for yourself. Ultimately however, the path is your own.
 
Thanks Jamie and Peter I appreciate your advice and feedback. I was obviously told how to work it out wrong so thanks for clarifying it for me.
 
Brian84 said:
What would be the most useful way to use this equity, what could I afford with this amount with not much cash flow. Where would be a good place to buy.
Click to expand...

Hey Brian,

Equity may not be the only issue here if cash flow is a concern, your borrowing capacity may restrict you. As others have mentioned, its a good idea to sit down with someone who can work out how much you can borrow and help you show a pathway to your goals. From the other thread, a 10-20 property portfolio is quite an ambitious target and will likely need a well set up finance strategy from the outset.

Ps your at the right place in SS to learn as much as possible.

Most investors will tell you that having a plan is one the keys to success. You've got the 'goals' part down pat, now its about sitting down and working out a plan to get there. The plan should help guide you in sourcing investments.

Cheers,
Redom
 
You must log in or register to reply here.

Similar threads

T
New Investor
Replies
8
Views
2K
TFE
T
Z
Goal is to live off rent in the future how?
Replies
18
Views
4K
srini
S
2
Not sure where to from here...
Replies
2
Views
1K
Propertunity
Propertunity
M
Buy to live in now or rent it out. Advice please
Replies
8
Views
2K
Maidenvain
M
A
Sell a unit to buy a house or borrow full amount for a house and rent out the unit
Replies
4
Views
2K
wobbycarly
wobbycarly
Back
Top