Planning ahead

Discussion in 'Investment Strategy' started by Milo16, 11th Mar, 2020.

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  1. Milo16

    Milo16 Member

    Joined:
    18th Feb, 2018
    Posts:
    19
    Location:
    Sydney
    Hi all, I’ll give you the brief run down of where I’m at and what I’m trying to do.
    Last year I sold my PPR in Sydney and moved to Northern NSW. I bought a new PPR and have a small mortgage and around $550k in the offset. I have another property in Sydney that is about $40k positive. I’ve spoken to my broker and she said that I can’t borrow based on last years income. I’m self employed and my wife has a good full time income.
    I’ve been looking at properties in Ipswich and Brisbane with add value/ granny flat potential.
    My concern is buying something and not being able to move on to another deal.
    I don’t plan on any major increase in income unless I can use my cash to do some flips or subdivisions.
    I guess I’m after a bit of advice on way to move forward.
    Thanks in advance.
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,456
    Location:
    QLD
    Without knowing the full financial details it's a bit hard to know how to move forward other than the fact that the cash sitting in offset could be used to purchase property in those areas. Whether or not that's the best financial decision is hard to say.
    Trust your broker has exhausted all avenues for lending (second tier lenders etc) and you've hit the 'serviceability wall' . Some lenders still allow 2018 financials if that years income is better than 2019's that may be an option?
     
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  3. Milo16

    Milo16 Member

    Joined:
    18th Feb, 2018
    Posts:
    19
    Location:
    Sydney
    I’m not completely happy with my broker. Good advice about second tier lenders. I’m happy to spend my cash. I just don’t want to snooker myself.
    I’ll look into another broker. Any recommendations?
     
    Lindsay_W likes this.
  4. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,456
    Location:
    QLD
    Plenty of good brokers on here, at the risk of leaving anyone out I've sent you a PM