Hello!

Hi everyone, I'm currently mortgaging my PPOR and I have about $300k owing. I would like to buy my first IP with any existing equity but have no idea who to speak to first. One buyers agent told me to speak to my bank and my accountant told me to speak to a mortgage broker but all I want to know and try to understand is whether or not I can afford to pay my mortgage on top of rental expenses from the IP. If anyone can advise me or point me in the right direction that would be great. Cheers, Adeline

 

Hi Adeline,

You might find this calculator useful if you're not sure how much your IP is going to cost you - Free Investment Property Calculator Excel Spreadsheet

Once you know more or less how much your IP will cost you, you'll be able to tell if you can afford it as well as your PPOR mortgage.

Other ways to increase affordability in the short term would be to find a PPOR loan with a really competitive rate, and put your repayments in interest only.

 

I think you are best to go through a Mortgage Broker, particularly if you need to obtain finance ( other than the equity release ) to fully fund the IP purchase. The lender you ultimately work with for your IP may be different to your current lender.

Due to significant regulatory pressure relating to investment lending, release of equity is becoming increasingly difficult. Serviceability calculations have also changed. Talking to a bank may put a hit on your credit file.

Make sure you deal with an experience broker and they don't necessarily need to be local ( although it is sometimes useful ). 99% of the communication with my Broker is via e-mail and he is incredibly efficient.

 

Thanks for the info! Care to share your brokers details?

 

Thanks for the info and tip!

 

From the riff! Welcome aboard. Im from emu

Plenty of brokers here to suss out. They're all happy to help and don't be afraid of Skype to chat rather than in person

 

Hi Adeline,
We started in your similar situation few years back. It's great that you are seriously thinking of using investment property as a vehicle for creating long term wealth.
Without confusing you much the first step is to redraw the maximum equity from your PPOR. Ideally create an offset account. If this is long term play, use a good broker as he / she will be an important player in your team.
Secondly look for a good accountant how understands property and has been successful investor himself.
Once your have these two players on your side your will hopefully have a good mentor in terms of cash flow management & you will know your buying capacity.
Then the fun starts in terms of property research & what your plan of action or strategy should be / where to buy / what price range etc. This is life long process.
Our forum is a excellent place to keep learning.
If you are Sydney based, I can pass you the names that we use. But we have some excellent people of this forum, meet couple of them and see if your feel comfortable to offer them positions on your property investing team.
Good Luck.

 

Thanks for the advice!

 

I use Hank from Home Loan Experts. Their office is in Rhodes.

 

South Penrith to be exact

 

Last time there was a penrith person on here I knew them... But I'm not feeling it this time unfortunately.
Sth pen nearly as good as jamisontown I guess we have a house we might go back to on the good side of mulgoa Rd

 

There are highly skilled and capable brokers on Property Chat - kick off some private messages and see who you connect with and take it from there ...enjoy the exciting acquisition phase