Jul 30th, 2025

How Simon Can Afford a $700,000 Investment Property at 62

Simon Investment Analysis

Maximizing Simon’s Borrowing Power for a $700,000 Investment Property

Simon is 62 and has a combined annual income of $109,200: $52,000 from employment, $36,400 from income protection, and $20,800 from renting a granny flat. He owns a Mudgereeba home valued at $1.3 million with a $500,000 mortgage, leaving $800,000 in equity. With no other debts and zero savings, Simon can access up to $540,000 of that equity (80% LVR) or tap $140,000 from his superannuation for a 20% deposit.

Standard serviceability rules suggest a borrowing capacity of about $400,000–$420,000. However, including projected rental income from the new property (assumed 4.5% yield) lifts his capacity to approximately $560,000—enough to target a $700,000 purchase once the deposit is secured.

Repayments on a $560,000, 15-year variable-rate loan would be around $4,280 per month. Against that, rental income of $2,625 per month reduces his net out-of-pocket cost to about $1,655 monthly—a figure Simon can manage with disciplined budgeting.

Recommended Next Steps

  • Consult a mortgage broker to compare investment loan products and interest rates.
  • Use either available home equity or $140,000 from superannuation for a 20% deposit.
  • Opt for a 15-year variable-rate investment loan with an offset account to minimise interest charges.
  • Plan for the end of income protection cover at age 65 by building additional cash reserves.
  • Maintain consistent rental income and set aside funds for potential vacancies or maintenance.

By leveraging his existing equity, accessing superannuation where appropriate, and structuring his loan smartly, Simon can confidently acquire a high-yield Queensland investment property and continue growing his wealth as he approaches retirement.

Explore opportunities and assess your borrowing potential here to develop a tailored plan for financial success.

Depreciation Guide

Discover the #1 tax secret wealthy Australian property investors use to grow their portfolios faster — even in a high interest rate environment.

  • Learn how to turn wear and tear into wealth
  • See real examples of $15,000+ first-year deductions
  • Understand how to structure your purchases for maximum after-tax ROI

Download Your Free Wealth Building Guide

This ebook reveals how to legally slash your tax bill while building long-term wealth through property. Learn the strategies savvy investors use to gain an edge — even before settlement.

  • Maximise tax deductions and improve cash flow
  • Understand Division 40 vs 43 and how to claim both
  • Position yourself to reinvest and scale faster
Free Instant Access
@

Thinking of investing in property? Don't let hidden costs catch you off guard! From council rates to unexpected repairs, there's more to consider than just the mortgage. Learn how to prepare and manag...

@

Darth Vader didn’t waste time scrolling realestate.com.au hoping for a price drop. He didn’t wait for perfect conditions. He built empires — one leveraged deal at a time. While you’re debating whethe...

@

Discover why knowing your investor profile is crucial before diving into property investing. Learn how it affects your risk tolerance, preferences, and investment timeline. Don't make the mistake of r...

You may also like

Related posts

Can You Own Investment Properties and Still Qualify for the First Home Owner Grant?

FHOG Eligibility for Property Investors It might come as a surprise, but even if you own one or several investment properties, you could still qualify for the First Home Owner Grant (FHOG). The determining factor isn’t property ownership—it’s whether you have lived in a property as your primary residence. Key...

May 15th, 2025
10 months ago
Why Bank Servicing Taps Out After a Few Property Purchases

Bank Servicing Limits in Real Estate Investments: What You Need to Know Venturing into real estate investment can generate impressive returns, but many investors soon face a critical obstacle: bank servicing limits. These limits, which banks impose based on strict lending criteria, often cap your borrowing potential after a certain...

Jun 1st, 2025
9 months ago
How Much Can Alfred Borrow for a Home Loan in 2025? Detailed Breakdown

How Much Can Alfred Borrow for a Home Loan in 2025? Detailed Breakdown Alfred and Reena have a combined gross income of $266,400 per year and support two children. With existing debts—a $990,000 mortgage and a car loan costing $1,100 per month—they’re exploring their capacity for an additional home loan...

Jul 25th, 2025
7 months ago
Straightforward process

Ready to take control of your financial future?

01
Discovery Q&A:

We begin with a personalized discovery Q&A to understand your goals, risk tolerance, and financial situation.

02
Custom Strategy:

Based on your needs, we craft a strategic investment or financial plan tailored just for you.

03
Ongoing Support:

We help you track progress, optimize decisions, and adjust your plan as your life and markets evolve.

04
Financial Freedom:

With a clear roadmap and expert guidance, you move confidently toward long-term wealth and peace of mind.

28+ Years guiding investors
Plan Your Investment Strategy

Understand your goals and build a tailored strategy—whether you're focused on cashflow, capital growth, or long-term wealth creation.

Access the Right Opportunities

Explore high-growth areas, new builds, house & land packages, or SMSF-ready properties matched to your financial profile.

Build Long-Term Wealth

Leverage tax advantages, depreciation, and smart lending strategies to maximise returns and grow your portfolio sustainably.

Start Your Investment Journey

Smart Property Investing Starts Here

Whether you're a first-time investor or growing your portfolio, we provide the guidance, tools, and insights you need to make informed decisions and secure high-performing properties. Let us help you turn property into prosperity.