Can we afford a $1.6M farm with our messy finances & PPOR equity?

[NeonCobra42]

Complex finance and PPOR question.

Our PPOR: bank value $950k. We owe $590k. Part of that loan funded two businesses.

Business A: cost $275k. Now worth $600k.
Business B: cost $40k. Now worth $150k+.

Both businesses help pay the $590k mortgage. Minimum repayment is $3.8k. We pay $5k monthly. Redraw available: $10k.

We are self-employed. My income: $200k. Hers: $100k. No super. Two new cars, a new caravan, and a $40k toy car. All paid off. One child. Another on the way.

Business A has a $200k loan. We pay double the minimum. It will be paid off in two years.

Business B is debt-free. It's partly funded by Business A. We take no profit; we don't need to.

A local farm is for sale. $1.6m. Ten acres. Beautiful house. It's very attractive.

Our household expenses are low. Business A covers most costs.

Given our complex finances and low expense ratio, can we consider this? Is it worth asking our broker if we could sell our PPOR to buy the farm?

 

[goodyjinokminnow]

You might be feeling a bit stretched on equity right now, unless you have some cash set aside to ease the pressure. Perhaps we could explore borrowing from within the businesses themselves and then distributing it out. There are a few paths we could consider, but I have to be honest it feels challenging to know the best way forward without truly seeing the full structure of things and the reality of the financial statements.

 

[Dymezy]

Okay, so here's the deal: you absolutely need a solid business banker, someone who actually gets how this whole circus works. Just do ALL your financial stuff with them. Makes life way simpler. Honestly, if you've got over a million bucks in debt with NAB, they'll hook you up with a local business banker. Just build a real relationship with that person, and you'll probably be alright. Man, good luck navigating the current chaos out there.