Hi Everyone ,
I am currently in the process of purchasing my first investment property. I decided to build in the south western Sydney and put a down payment on a block of land in September last year. I have been lucky enough to see quite a bit of growth since September and my block of land has increased by about 45k.
I was wondering if a prediction of some sort of could be made about my future borrowing power next year. Since I am building and its a brand new house I need to live in the property for 6 months and rent it out after. My loan amount will be about 440k and the valuation of property hasn't been done yet but similar house and land packages are going for over 550k. I am hoping when my valuation comes back it will be around 510 to 515k.
I am wanting to put a deposit on another development it will only costs me 1000$. I am hoping to purchase a unit for 450k the completion date is the middle of next year. Will I be able to fund the purchase middle of next year? My first property will rent for minimum $500 a week and my income is 80k a year and only debt is hecs with no other expenses as I am living at home. My goal is try to accumulate property at a fast rate as I have other commitments like a ppor or family at the moment. I would like to retire by 45 to 50 years old. From my calculation both these property should be neutral cash flow maybe even positive after tax benefits
Also would it be feasible to withdraw the equity to fund the new purchase and pay lmi on both properties again? Or would I be better of buying something a bit cheaper. Lastly during the period of when I am living in the property for 6 months will I be able to purchase another property of about 200k I was hoping in investing or will I have to wait until I start renting out my property to be able to fund additional purchase?
Thanks in advance.
I am currently in the process of purchasing my first investment property. I decided to build in the south western Sydney and put a down payment on a block of land in September last year. I have been lucky enough to see quite a bit of growth since September and my block of land has increased by about 45k.
I was wondering if a prediction of some sort of could be made about my future borrowing power next year. Since I am building and its a brand new house I need to live in the property for 6 months and rent it out after. My loan amount will be about 440k and the valuation of property hasn't been done yet but similar house and land packages are going for over 550k. I am hoping when my valuation comes back it will be around 510 to 515k.
I am wanting to put a deposit on another development it will only costs me 1000$. I am hoping to purchase a unit for 450k the completion date is the middle of next year. Will I be able to fund the purchase middle of next year? My first property will rent for minimum $500 a week and my income is 80k a year and only debt is hecs with no other expenses as I am living at home. My goal is try to accumulate property at a fast rate as I have other commitments like a ppor or family at the moment. I would like to retire by 45 to 50 years old. From my calculation both these property should be neutral cash flow maybe even positive after tax benefits
Also would it be feasible to withdraw the equity to fund the new purchase and pay lmi on both properties again? Or would I be better of buying something a bit cheaper. Lastly during the period of when I am living in the property for 6 months will I be able to purchase another property of about 200k I was hoping in investing or will I have to wait until I start renting out my property to be able to fund additional purchase?
Thanks in advance.
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