2nd Property Feasibility

Hi all,

I hope that you are having a lovely weekend.

I’m turning to the brilliant individuals on this forum once more for insight. Having trawled through the threads and unfortunately experienced no replies from my first broker, I’m now eager to answer the questions myself. I of course am in the market now for a new broker.

I’m attempting to ascertain how much I can borrow for a 2nd property based on my circumstances below -

- Salary: 170K
- Monthly expenses: $3K
- Non Property Debt: HECS - $10K, happy to pay this out.

Currently own 1x home that is rented out in QLD - around $640K owing, property value of $970K-$1M. Property has been owned for nearly 12mnths. The home is positively geared by about $200 a year.

I’d love to stop renting the place I’m currently in and instead buy a second property to live in. This 2nd property would be based in Sydney I expect.

Any insights on my maximum borrowing capacity / how to figure it out would be amazing. I must admit, I’m a little confused.


Thanks
TommoAus

 

Would need a little more detail, but on this income options will exist for borrowing. Looks like the equity is there too, so it will largely be about working out your exact budget (advice/bank required) and then going from there.
Accessing as much equity out will be helpful (at 80 ltv ideally), so run a couple Val’s and see where they land. Often a 10% spread in Val’s on the same property that could help get a little extra out.

 

I think first step is to find a broker to run the numbers for you with different lenders yo identify what you can do with your borrowing capacity and also your equity/savings.

 

Hi all,

Appreciate the help here.

I’m down here in Syd at the moment.

what could some hypotheticals look like in your opinion?

I’d be aiming to pick something up for 1.2-1.3M I think.

Cash to hand is about $50K