Can I buy a new home with this?

blackmarch

Hi all,

Sorry, title should read "Equity from investment property for buying first home (to live in)" but that's a bit long.

I recently finished building a house in Australia (I'm living overseas), which we have just started renting out.

We owe: $486,000
It just got valued by the bank at: $700,000

Am I right in assuming I have:
- $214,000 equity
- $74,000 equity available to use as a deposit on next property
- Maximum total spend on Property 2 including all fees (without kicking in extra savings): $370,000

Trying to figure it out. We are moving back to Oz next year and I'm wondering whether buying a house to live without having to chuck in a lot of savings will be possible.

Do those numbers look right?

Richey_

Your post is very confusing.

If your house sells for what it has been valued at, I.e 700,000
You have 214,000 equity.
Minus any sale and buying fees you can put as much of what’s left of the 214,000 equity towards the deposit on the new house as you want/need to with the bank.

The less you borrow for your next house, the less interest you will have to pay and either the less amount of time it takes to repay the loan/ less required to pay per month.

I think you need to rewrite your first post, it’s very confusing

antenna

You owe $486.000 and without selling you want to spend $370.000 more...... That is some debt.

AndyT678

blackmarch wrote: »

Hi all,

Sorry, title should read "Equity from investment property for buying first home (to live in)" but that's a bit long.

I recently finished building a house in Australia (I'm living overseas), which we have just started renting out.

We owe: $486,000
It just got valued by the bank at: $700,000

Am I right in assuming I have:
- $214,000 equity
- $74,000 equity available to use as a deposit on next property
- Maximum total spend on Property 2 including all fees (without kicking in extra savings): $370,000

Trying to figure it out. We are moving back to Oz next year and I'm wondering whether buying a house to live without having to chuck in a lot of savings will be possible.

Do those numbers look right?

So my interpretation of this is:

You currently live somewhere that is not Australia but you have built a house in Australia and plan to move to Australia next year but not to live in the house that you built.
You may or may not be Australian and you may or may not previously have lived in Australia.
The house you own is valued at $700k with a mortgage of $486k.
You think you can refinance this house with an 80% LTV mortgage of $560k which would pay off the current mortgage and leave you $74k in cash.
You think you can then use the $74k as 20% deposit on another house meaning a max purchase price of $370k and another $296k mortgage.

Those numbers all add up in terms of the percentages but I have no idea whether an Aussie mortgage lender offers those products or whether one is going to want to lend that quantity of money to you.