Part time finance query



From: Part Timer

I currently have 2 jobs, the first being a full time permanent job and the second being a part time job. Working both jobs is putting me under a fair bit of strain and I wish to resign from the full time job shortly as the part time job pays better, offers lots of overtime, is a night shift position (allowing me to work on my props and look for more during the day), supplies laundered uniforms and free food. The only problem is that the part time job only guarantees me 20 hours per fortnight even though they have refused to roster me for any less than 72 hours per fortnight. I have been in this part time position for 6 months and have worked for this employer previously in a full time role for around 5 years.

My wife and I are looking for a house in the 200-280k range at the moment to be our PPOR and was wondering if quitting the full time job would present a problem. My wife has just gone back to work 3 days per week after the birth of our first child, she is earning $480 per week on a part time basis whilst I could easily earn 55-60k from the part time job if it was my only job or 75k with both.

We have 2 flats with 1 bedroom each. They are valued conservatively at 95k each, would rent for $150 per week each and I have a loan for 107k with 35k available for redraw.

I also have around 75k invested in managed funds and around 40k in a margin loan. I have been putting $750 per month into my managed funds for the last 2 and a half years and borrowing $1500 per month as well. All dividends are reinvested and I wish to continue with this until the margin facility gets to 50k and then just contribute without borrowing with the dividends still being reinvested.

Neither of us have credit cards, personal loans or mobile phones, and we both have recently sent away for and received a copy of our credit reference with no "nasties" appearing.

We own outright a 2000 model car valued at around $13000 and an old car valued at $2000 as well as all of our furniture.

After doing a budget for us, we have around $500 per week of disposable income after all expenses that could be put toward a loan on a PPOR

Do you think we would qualify for finance at a reasonable rate with me quitting my full time job before looking for finance? Any help greatly appreciated.

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Reply: 1
From: Anthony C

Lotsa due dilligence there, great stuff.
I'd suggest buy your PPOR first then quit your Full time job. You could even maybe buy and investment and PPOR at the same time. Duplex, set of two/three townhouses, live in one rent the others out.

Your serviceability is really great now, and make use of it. You'll kick yourself when the banks start making life hard for you. Just last a little longer in the F/T job, delayed gratification, sacrifice for the future.

P.S. try to buy Positive gearing IP so the bank won't freak out when the see no Full time income.

Cheers Ant.

"Let us so live that when we come to die even the undertaker will be sorry."
--Mark Twain
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