WorkingClass
Registered User
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- 18
I've always wanted to buy an investment property. I'm completely unclear of how much real cash I would need to do this in the current climate.
So, I'm married with two kids and a home owner. Bought this house for 510k 2 years ago. Estimate current value to be at most 450k currently. Outstanding mortgage is about 300k.
So, let's say in 12 months time the house is worth 400k, and I owe 300k leaving me with 100k of equity. I've never had any other debts and have overpaid mortgage payments in the past for years, so credit rating should be very solid.
I hope to have a total of 100k cash saved in the next 12-18 months. Have approx 70k currently. Obviously, I'm hoping that house prices continue on their current trend for the next year or so.
So lets say I want to buy another property for between 300k and 400k in 12 - 18 months time. I'll have approx 75k for deposit and 25k to cover fees and stamp duty.
Does it sound reasonable that I could raise a 225 - 325k mortgage for this purchase?
Obviously I need to talk to banks about this. It's always pretty clear what you need in both cash and earnings to take out a mortgage for a family home. It's not nearly as clear how much you need for an investment property. Anyone have an idea of what guidelines they use?
So, I'm married with two kids and a home owner. Bought this house for 510k 2 years ago. Estimate current value to be at most 450k currently. Outstanding mortgage is about 300k.
So, let's say in 12 months time the house is worth 400k, and I owe 300k leaving me with 100k of equity. I've never had any other debts and have overpaid mortgage payments in the past for years, so credit rating should be very solid.
I hope to have a total of 100k cash saved in the next 12-18 months. Have approx 70k currently. Obviously, I'm hoping that house prices continue on their current trend for the next year or so.
So lets say I want to buy another property for between 300k and 400k in 12 - 18 months time. I'll have approx 75k for deposit and 25k to cover fees and stamp duty.
Does it sound reasonable that I could raise a 225 - 325k mortgage for this purchase?
Obviously I need to talk to banks about this. It's always pretty clear what you need in both cash and earnings to take out a mortgage for a family home. It's not nearly as clear how much you need for an investment property. Anyone have an idea of what guidelines they use?