Hi,
Don't know what to do from here on....
Just in the past month two friends passed away both at the young age of under 35...we started to think may be we need to better look after ourselves and enjoy more NOW not later. Buy something we 'like' to live in i.e. house on land which has always been on our bucket list.
We want to buy and live in a 3 bed house on a sub dividable land 650sqm in Ryde area $1.2M to $1.4M - that's what we can afford. And 'design and build' an eco house at rear - also one of bucket list.
We also want to buy another 2 bed IP around $600k-$800k under the family trust (and any IPs purchased in the future will be under the trust) now that our frankston IP's sold we feel we need to buy another IP.
We currently have:
PPOR in a blue chip location 5 mins walk to station, 3 bed TH purchased for $730k in 2012 (Current value $1M but probably needs some cosmetic reno first) has mortgage owing $570k.
IP 3 bed unit purchased for $370k in 2012 (Current value $480k) has mortgage owing $360k + top up loan $70k from PPOR.
Cash savings $170k.
If we don't go for our dream PPOR it's quite straight forward; simply get into an IP, we've spoken to CBA they are happy to loan us (our faimly trust) $800k without a cent out of pocket savings after refinance both existing properties with them, also subject to rental yield needs to close to 5%. We spoke to CBA because they seem to be the only lender willing to lend to family trust not because their rate is the best.
So here comes the bucket finance question:
IDEALLY if we can keep our PPOR lease it out for $800/wk as an IP that would save us in IP hunting, stamp duty etc and that we can focus on hunting for PPOR. BUT CBA's $800k loan plus our $170k savings = $970K just not enough for a $1.2M house...
how can we make this plan possible, only if we have another $200-400k?
VS
Buy IP now, sell PPOR next year for dream PPOR:
If we go ahead and buy a new $800k IP now through refinancing both existing properties, then SELL the PPOR next year to pocket the CG. Would we be able to top up the new IP loan to fund a new PPOR? I'd assume the loan won't be tax deductible?
VS
Sell PPOR next year to cash in CG buy dream PPOR first, then buy IP:
Reno the PPOR sell and buy the dream PPOR, then refinance the new PPOR for $800k IP. With this plan there will be a delay in time as it take time to reno and we don't know how long it's going to take to hunt that new PPOR. We worry if we not buy anything now next year the rate goes up it'd be too late to get through the lender.
VS
anything else? Any thoughts?
How does lender evaluate borrowing capacity? Does quantity of IP lower your borrowing capacity even if they are positive cash flow?
Many thanks!
Don't know what to do from here on....
Just in the past month two friends passed away both at the young age of under 35...we started to think may be we need to better look after ourselves and enjoy more NOW not later. Buy something we 'like' to live in i.e. house on land which has always been on our bucket list.
We want to buy and live in a 3 bed house on a sub dividable land 650sqm in Ryde area $1.2M to $1.4M - that's what we can afford. And 'design and build' an eco house at rear - also one of bucket list.
We also want to buy another 2 bed IP around $600k-$800k under the family trust (and any IPs purchased in the future will be under the trust) now that our frankston IP's sold we feel we need to buy another IP.
We currently have:
PPOR in a blue chip location 5 mins walk to station, 3 bed TH purchased for $730k in 2012 (Current value $1M but probably needs some cosmetic reno first) has mortgage owing $570k.
IP 3 bed unit purchased for $370k in 2012 (Current value $480k) has mortgage owing $360k + top up loan $70k from PPOR.
Cash savings $170k.
If we don't go for our dream PPOR it's quite straight forward; simply get into an IP, we've spoken to CBA they are happy to loan us (our faimly trust) $800k without a cent out of pocket savings after refinance both existing properties with them, also subject to rental yield needs to close to 5%. We spoke to CBA because they seem to be the only lender willing to lend to family trust not because their rate is the best.
So here comes the bucket finance question:
IDEALLY if we can keep our PPOR lease it out for $800/wk as an IP that would save us in IP hunting, stamp duty etc and that we can focus on hunting for PPOR. BUT CBA's $800k loan plus our $170k savings = $970K just not enough for a $1.2M house...
how can we make this plan possible, only if we have another $200-400k?VS
Buy IP now, sell PPOR next year for dream PPOR:
If we go ahead and buy a new $800k IP now through refinancing both existing properties, then SELL the PPOR next year to pocket the CG. Would we be able to top up the new IP loan to fund a new PPOR? I'd assume the loan won't be tax deductible?
VS
Sell PPOR next year to cash in CG buy dream PPOR first, then buy IP:
Reno the PPOR sell and buy the dream PPOR, then refinance the new PPOR for $800k IP. With this plan there will be a delay in time as it take time to reno and we don't know how long it's going to take to hunt that new PPOR. We worry if we not buy anything now next year the rate goes up it'd be too late to get through the lender.
VS
anything else? Any thoughts?
How does lender evaluate borrowing capacity? Does quantity of IP lower your borrowing capacity even if they are positive cash flow?
Many thanks!
