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  1. #1

    Default Is 30% equity on my home enough to start investing? Thoughts?

    Hi all,

    this is my first post and I want to thank everybody for their willingness to help.
    I've been reading the forum for quiet sometime and I got a lot of info, I read a lot of books and I attended a few seminars as well but I think is time for me to take more action.

    I bought a house in February which I live in and I have a boarder in it which helps to pay the mortgage.

    my goal is to buy and hold, i have been looking at properties within a 300k-500k range in Wellington area.
    my question here is:
    is 30% equity on my home (about 97k) good enough to think of buying another house?
    or should I keep increasing that number and wait a bit longer?

    any advise, opinions, thoughts would be much appreciated.

    thanks in advance.

  2. #2
    Join Date
    Aug 2003


    Hi Elivi,

    20% min equity in your PPOR (home you live in) so you can borrow 80% of the approved reg. valuation.

    You need 35% min. equity for rentals and borrow max. 65% of the value.


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  3. #3


    30% equity in your home means you have 10% equity "spare" to use as security (deposit) on an investment property.

    You then need 35% deposit on that investment property as Donna mentioned. So your spare 10% is 35% of _____? That is how much you can buy today, assuming you meet servicing criteria.

  4. #4


    Thanks a lot donna and Nick G!!!

    I better keep saving :-)


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