PPOR equity buy IP

PPOR Market value 500k, I/O loan 300K, Offset 200K. Salary 73k per year.
I'd like to purchase an IP price 800K. Should I pay off my loan and use PPOR to borrow 400K and IP to borrow 400K to buy IP? Can I borrow that much? Thanks

 

We'll need a lot more info to let you know how much you can borrow - it will depend a lot on other debts, income from the new IP, wife, kids, and so on. Have a chat with one of the brokers here and they'll let you know what's possible.

 

Not enough info to give you an estimate of your borrowing capacity. Contact a broker and get your specific numbers. They need details of any credit card limits, living expenses and the likely rental income from the new purchase etc.

Regarding deposit, the general idea is to borrow 20% plus costs ($200odd) against the ppor and 80% against the new investment property.
In your case that would mean repaying some of your loan and restructuring to have a split loan, one for the deposit, and the rest for your remaining ppor loan.

 

Thanks for your reply. That's fast. What about No kids, single, expected rental potential 600 per week. No other loans and credit cards. Just try to get a general idea first. Again, many thanks for your reply!

 

Thanks for your reply. Actually there is a typo. My PPOR loan balance is 300K, offset balance is 300k too. So no interest paid. So I guess this means I don't need a split loan on my PPOR?

 

Your monthly living expenses (food, transport, utilities, insurances, etc etc etc) comes into play too. Banks need to understand what your basic living expenses are per month.

 

It depends. It might be a good idea to leave a ppor split. An emergency fund for holidays, new car unforeseen owner occupied type expenses. Everyone's circumstances are different.

 

I have run some very rough numbers based a hypothetical person earning $73k and $600p/w rent and it looks like it would be a struggle to get a $800k purchase, a $600k purchase may be achievable.

As everyone else said, to get an idea you would need to chat with a broker to look into your individual situation.