Invest property in QLD

Learn more about investing in Australian real estate & share your ideas with other investors.
Post Reply
Samford
Posts: 4
Joined: Mon Feb 13, 2012 6:35 pm

Invest property in QLD

Post by Samford »

Hi

Last year I purchased my first property in Brisbane. This year I would like to buy my first investment property.
  • Current property is worth approx. $320K
  • Current mortgage is $275K
  • Cash in bank is $15K
I am in an above average income, single with no dependants, looking for an investment at around the $300-$350K mark in Brisbane.

Should I, put that $15K on my mortgage and use equity to fund the deposit?

Do I have adequate equity/deposit to fund an investment?

Thanks

User avatar
Matthew Trad
Mortgage Specialist
Posts: 49
Joined: Fri Oct 26, 2012 10:09 am
Location: Sydney, Australia
Contact:

Re: Invest property in QLD

Post by Matthew Trad »

Hi Samford

Thanks for your forum post!

The costs associated with purchasing a $350,000 property in Brisbane are as follows
  • Stamp Duty $12,000 (approx)
  • Legal costs $2,000
  • 5% deposit $17,500
TOTAL $31,500


The costs associated with purchasing a $300,000 property in Brisbane are as follows
  • Stamp Duty $10,000 (approx)
  • Legal costs $2,000
  • 5% deposit $15,000
TOTAL $27,000

Now assuming your property is still valued at $320,000 you can refinance to 90% Taking your loan to $288,000.

This will give you $13000 in equity to use plus the $15,000 you already have
Total funds available for new purchase is $28,000

You would not really need to Deposit the funds into your loan account to use it for a deposit. Better to keep them in savings account.

Your success is going to depend on whether the value comes back on your existing house at $320,000

We offer free up front valuations for our customers, this can help to see whether or not you have the required equity to proceed with buying an investment!!

We encourage you to reply on your forums to share the knowledge, Otherwise feel free to contact me directly.
Matthew Trad
Senior Mortgage Broker
P | 1300 889 743 E | matthew@homeloanexperts.com.au
Home Loan Experts

Post Reply