Some help required regarding proporty.

Hi, long time lurker but rarely post.

Me and my partner brought our first proporty in Frankston South, Victoria back in July 2016. We paid 449k for it back then and still have about 400k remaining on the mortgage. It's a three bed, one bath, two car unit on a block of four with no body corp in the highschool zone. We have been paying principal and interest but haven't been paying much extra into the proporty as we have been renovating.

When we brought the property we were 25 and 26 years old respectively, we are now nearly 30 and thinking about having kids in the soon future.

My questions are, will the fact that we have a child effect out borrowing capacity? Is it better to buy something before having kids if we find that it is financially viable?

The second question is, are the days of buying proporty with just pure equity over? Is this something we are able to do?

Last time our proporty was valued it came in at 580-600k, an identical unit next door to us sold for 612k unrenovated but this was at the top of the boom so obviously things have changed since then. We were thinking of either keeping our place as the rent would cover our mortgage and then buying a bigger house in the same area, or selling all together and upgrading.

What are our options?

As a bit of background, combined salary is about 150k, we have a 400k mortage, and a 12k car loan. No other debts.

Thanks

Luke

 

Hey Luke

Yes - each dependent reduces your borrowing capacity.

Using equity (if you have it) is fine when it comes to purchasing another property. If you have enough equity you might not need to use any savings.

Cheers

Jamie

 

Awesome, thank you for the responses. Sounds like I need to sit down with a broker.

Is their a broker that it highly recommend here? Or anyone you guys recommend?

 

2 of them actually replied to your post here
There are others you can find in the service directory here: Service Provider Directory

 

Haha I see, it's been a long week.

Thanks very much.