Don't want to highjack Jingo's informative thread - but the figures and info has really made me start thinking. Rather seriously.
With what is going on recently we've had a real attitude adjustment to a lot of things in life ... so I want to ask some questions.
If/when ppor sells and if/when hubby gets package payout, we'll have around $1mil (prob just over) in cash. After always owning a ppor we've decided that it's okay to rent for a while until we get sorted with work, location, right property etc. We'll still hold the IP's as they are neutral atm and would only yield another $100,000 in equity, so not worth hassling.
That being said ... Jingo's figures on a comm property leads me to think that we might be able to buy a comm at around $3mil, with $1mil for costs and deposit ... and that if it's returning around 9-10% ... and if borrowing was at around 7% ... the difference between rent and interest repayments is around $150,000/yr ... bit of a mind shift happening as that's our current gross income.
1. What would the expected principle repayments be on P&I commercial loan of $2mil as I can find info on the bank sites for "business loans" but not for business property investment loans.
2. Would we need an alternative income to qualify for borrowing? ie, send the wife out to work in the salt mines if hubby unable to procure anything immediately.
3. Anything else anyone can think of
Thanks in advance.
With what is going on recently we've had a real attitude adjustment to a lot of things in life ... so I want to ask some questions.
If/when ppor sells and if/when hubby gets package payout, we'll have around $1mil (prob just over) in cash. After always owning a ppor we've decided that it's okay to rent for a while until we get sorted with work, location, right property etc. We'll still hold the IP's as they are neutral atm and would only yield another $100,000 in equity, so not worth hassling.
That being said ... Jingo's figures on a comm property leads me to think that we might be able to buy a comm at around $3mil, with $1mil for costs and deposit ... and that if it's returning around 9-10% ... and if borrowing was at around 7% ... the difference between rent and interest repayments is around $150,000/yr ... bit of a mind shift happening as that's our current gross income.
1. What would the expected principle repayments be on P&I commercial loan of $2mil as I can find info on the bank sites for "business loans" but not for business property investment loans.
2. Would we need an alternative income to qualify for borrowing? ie, send the wife out to work in the salt mines if hubby unable to procure anything immediately.
3. Anything else anyone can think of
Thanks in advance.