I currently have a Mortgage and a credit card debt and would like to get into property investing. Is there any way I can buy property without a deposit and get finance with my current debt. My current debt in total is about75% of the value of my house.
Absolutely.
Depending on the new property purchase price you can use the existing property as security or simply draw some equity as a deposit.
[
] Mel gives a better description of my points in her following post – thanks Mel[]If you can provide figures I can be more exact.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Daniel,
Yes you probably can by either:
a) refinancing your current place, drawing out the equity and using that to establish a new mortgage over a investment property, or
b) cross-securitising against your mortgage.Option (b) is probably cheaper short term, but more inflexible and possibly not cheaper long term but it is the way that many people start getting into IP’s. Option (a) gives you the freedom of choosing the best and cheapest loan product on the day and making changes to either mortgage without affecting the other. The other advantage of option (a) is that if anything unexpected happens and you do have to default on a loan, the one bank does not have security over both properties hence the ability to dictate which one gets sold.
Before you get your house revalued make sure it’s in top condition as that can help with the valuation. Valuers are picking an estimate of what they think the property could be sold for in under 3 months if required, so the less renovation/repair projects on the go at time of valuation the better.
Happy investing!
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]
Mel
[email protected]
] Mel gives a better description of my points in her following post – thanks Mel[
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