Property Newbie: How to purchase 2nd property?

Hi all, Quite a newbie with property and seeking suggestions on my options.

Situation:

• Property in Brisbane, Purchased 2020, currently being rented out.
• Work in Perth, currently renting. But want to own a place of my own in Perth.
• 35, professional / contracting job, 110k paper income.
• Brisbane property: $900k value, rented out for $650/wk, $580k mortgage, $260k in offset.
• No other liabilities - no dependants, single, no personal loans.

Whats the best 'strategy' to own a place of my own in Perth?

 

The strategy depends on how much you can borrow.
Talk to a mortgage broker and see how much you can borrow, then decide on your budget.

 

As @Trainee said, it's not much point even looking unless you know if, or how much you can borrow.

 

based on those figures you might struggle to borrow enough.

 

I'd start with figuring out your borrowing capacity to see what's possible first, e.g. keep IP and buy PPOR in Perth, vs selling IP and buying in Perth, or just keep rentvesting.

 

Also depends if the new Perth home will be a long term home, or if it's likely to turn into an investment property doen the track. You want to be sure what ever you do will maintain as much deductible debt as possible, long term.

 

No, You should not buy based on how much you can borrow for loan security that is crazy, a good way to end up in servitude and miss opportunity. You should buy based on how much you dont need to borrow for it, and how much you can borrow against it for assetts giving high returns. @ 3% gross yield selling Brisbane is a no brainer strategy it isnt going to help borrowing capacity only destroy it. FOR v AGAINST have very different results = POOR v RICH.

 

what do you mean? @Ruby Tuesday

 

Was the Bris place your old PPOR or always an IP? That may be a deciding factor on whether to hold it or not.

I’d rather be an owner of PPOR than a renter in perth - when it’s rising at 2% MoM - so finding a way to do this would be the starting point. Will need to test out your borrowing capacity - and that could help work out your perth budget. the budget will be higher if you sell your Bris IP va keeping it.

steps:
1. Get broker to run both scenarios out, and with lenders that maximise capacity/options
2. Decide which pathway to take.
3. Take action (buy new PPOR, perhaps sell existing IP, etc. whatever comes from step 1)

 

Personally gave up on ruby tue’s posts a long time ago. Too sophisticated for an ordinary person like me. Though rich and poor are relative (and subjective).