Hello All,
After recently finishing Steves latest book, im full of enthusiasm to purchase my first +ve CF property.Ive been searching the market for a few months now, and have found a few potential purchases, but I dont currently have the deposit available to make the purchase.
I currently own 1 property (our home) with approx 70-90G equity. Is it worthwhile accessing this equity now to get into a +CF property? The other option is to save up the deposit which may take longer than 6 months. Any ideas?
Glenn
Are you sure about how much ‘useable’ equity you have?
It would be better to tell us how much your property is worth and how much is outstanding on your loan.
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The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
The property has just been valued (1 week ago) at 310-330K
I currently owe 200K. The 70-90K was a conservative est.
Thanks for your help.
Use the equity! Just make sure you can track it separately and you can claim that bit as a tax deduction. Anything you can save, pay back onto your own home because that’s not a tax deduction.
Keeping things at 80% LVR, you really only have about $50k – you could use that to buy over $200k worth of IP plus all costs and stay under 80% LVR.
I say go for it
Cheers,
MickWhat Mick said!!!
It would be easy to increase your loan if you service. There are options if you don’t. Expected rental income from the new purchase can also be used to help with servicing.
Good luck.
_____________________________________________
The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Thanks for you advice- Its amazing how the old FEAR factor tends to creep into the equation.
Next step…of to the Bank
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