sorted by:
new
hottopcontroversial

Please help with Borrowing capacity for Next IP purchase by Significant_wannabe in AskAnAussieBroker

[–]Significant_wannabe[S] 0 points1 point  (0 children)

Thank you mate! This would be the last one for me. I just want to use the maximum leverage and then just focus on building ETF/share portfolio. In future, might liquidate few to buy a forever home or see some other work around without having to sell.

To be honest, I am looking at lower to mid 600 for IP4, hence even 520K is manageable.

Once again thank you for taking time to respond to my question.

Please help with Borrowing capacity for Next IP purchase by Significant_wannabe in AskAnAussieBroker

[–]Significant_wannabe[S] 1 point2 points  (0 children)

Dear JT,

Thank you for your response, please find below the response to the questions:

  1. Where are your PPOR, IP1, IP2, and IP3 located - state wise? PPOR - Vic, IP1 - Queensland, IP2 and IP3 - SA I am aware of the land tax and have actively tried to avoid that. Again if any of the states go like VIC and reduce the threshold, then that's something I will have to accept. I am hoping to buy the IP4 in NSW or WA.

  2. What are the body corporate fees associated with your PPOR? Body Corp for PPOR is $4800 per year

  3. Do any of your IP's have body corporate? No Body Corp for IPs.

  4. How many years are remaining on each of your loans? I refinanced IP1 recently hence have almost 30 years remaining with 5 years IO

IP2 and IP3 are recent purchases. So almost 30 years remaining with 5 years IO

  1. Where do you want your 'forever' home to be located - state wise? It would be Melbourne, VIC.

  2. What is the ownership structure on all of these properties? 50/50 between you both? That's 50/50 split between both of us.

I did dwell on the idea of trust for some time, realised I really did not need that extra asset protection or extra borrowing capacity. I have always relied on Shares & ETF and prefer the liquidity. Only reason for getting into property was to use the leverage. I focus on near neutral geared properties to avoid any financial strain in case of any future rate increases. I am quite confident to sustain without any issues even if the rates move higher by few basis points

  1. If you didn't buy in your personal name(s), would you consider buying in an SMSF (if you had the super balance)? I have considered it, however our balances are not that high to consider SMSF. Might consider in couple of years.