Hi - I bought first IP in 2006 and would now like to try and purchase a 2nd.
Need advice re finances and also if I should be looking in the same area ?
Some info ..... The first IP was purchased for $ 350,000 in Oct 2006 and rents for $470 (gross) per week. It is a block with 2 houses on it ( 1 x 3br and 1 x 2br - both council approved ). Maximum equity was taken from my PPOR and a 20% depoit paid on the investment . So there is a mortgage on the investment 0f $280,000. I guess it would be valued now at around the v.high 300s to 400,000.00. I did buy at an exceptonal price at the time ( it was originally listed at 425000 ) as the vendors had purchased elsewhere and had 2 mortgages on the go and " had to sell "...... so around $100,000 of equity in this investment property
I have around $25,000 remaining ( equity from PPOR ) and have incomes ( wife & myself ) of + $100,000 pa.
1) How do I go about financing a 2nd IP with such a small amount ( $ 25K ) to cover deposit and fees ? Or can I use the 1st IP in some way ?
2) Should I buy in my area I live once again ( Umina / Woy Woy on the Central Coast NSW ). Very flat market here at the moment but good returns can be had for an investor if you buy right and am prepared to hold for the right length of time
Any advice gratefully received and all questions answered as best as possible
Regards
Barry
Need advice re finances and also if I should be looking in the same area ?
Some info ..... The first IP was purchased for $ 350,000 in Oct 2006 and rents for $470 (gross) per week. It is a block with 2 houses on it ( 1 x 3br and 1 x 2br - both council approved ). Maximum equity was taken from my PPOR and a 20% depoit paid on the investment . So there is a mortgage on the investment 0f $280,000. I guess it would be valued now at around the v.high 300s to 400,000.00. I did buy at an exceptonal price at the time ( it was originally listed at 425000 ) as the vendors had purchased elsewhere and had 2 mortgages on the go and " had to sell "...... so around $100,000 of equity in this investment property
I have around $25,000 remaining ( equity from PPOR ) and have incomes ( wife & myself ) of + $100,000 pa.
1) How do I go about financing a 2nd IP with such a small amount ( $ 25K ) to cover deposit and fees ? Or can I use the 1st IP in some way ?
2) Should I buy in my area I live once again ( Umina / Woy Woy on the Central Coast NSW ). Very flat market here at the moment but good returns can be had for an investor if you buy right and am prepared to hold for the right length of time
Any advice gratefully received and all questions answered as best as possible
Regards
Barry
