I wish to purchase an investment property but do not have sufficient equity.
My bank will not revlaue my property.
My situation is like this.My income is 70,000 per year.
I have a mortgage debt on my house that is 206,000.
I purchased the home for 240,000 in march this year and had invested 40,000 plus recently in renovation.
I would like to purchase an investment property for 250,000. I need a 10% equity plus all the additional costs … ie 50,000 dollars.My bank will not revlaue the property because I then will haveto take out the loan from them, which I do not want to. They also said that whatever value the property is it will be %80 of that. They also think that it won’t be much change since it was only purchased this year.
I had 2 agents that said they could sell it for 270,000 easily. 300,000 could be achieved but it hasto be a right buyer.
Is there any lending institution that will provide me 110% borrowing capcity with no equity outlay, even though I have current mortgage committments.
Please Help!!!
Hi Steve,
It’s very tight, but with a new valuation of $270K or more it can be achieved,IP purchase $250K @ 90%LVR including associated costs = funds required, approx. $41K or $31K at 95% LVR or $25K if you capitalise the LMI.
Current Equity available $270K @ 80% LVR = $216K less $206K = $10K or $37K at 90% LVR
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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