What to do next?

Viewing 4 posts - 1 through 4 (of 4 total)

as41
Participant
@as41
Join Date: 2005
Post Count: 108
October 30, 2006 - 11:38 am
Hi everyone, its been a while since my last post. (HaHaHa)
I have recenty finished a reno on my first IP, had it revalued which with 20% deposit left in it would leave me with about 50-60K (more if I leave 5-10%.
My question is, I am planning to refinance in order to buy but do I refinance to the max (maybe buy 2 IP’s) or just enough for one???
WOuld you leave 20% deposit in it or go the full up to 5% only?
Any suggestions???
[inlove]
Snowflake
usi
Member
@usi
Join Date: 2006
Post Count: 15
October 30, 2006 - 12:41 pm
Was the property positive cash flow or negatively geared to start with. If positive…do you want to push it negative, or if negative, can you afford to make those extra repayments??
If it was a positive cash flow property to start with, I would pull out enough funds for a deposit on another property providing it doesn’t push it into the negative zone. Or maybe if negative, use the money for a positive property…
Does that make sense??
Something I definately consider when refinancing and deciding where to allocate the funds.
Cheers
Crystal
Unique Strategic Investments
http://www.usionline.com.au
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
October 30, 2006 - 12:52 pm
Sounds like you haven’t formulated a clear goal and strategy to achieve that goal. You are getting bogged down in details and not considering the big picture.
One option might be to get an approval for the maximum borrowing but just draw enough to finance the next buy. Then when you have determined a following purchase you can draw the remainder.
Depends on your serviceability and whether your income will support that maximum loan.
Determine where you are headed then consult a professional to help you get there.
All the best
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
JohnSmith
Member
@johnsmith
Join Date: 2006
Post Count: 93
October 30, 2006 - 2:43 pm
Will just add
Originally posted by as41:
WOuld you leave 20% deposit in it or go the full up to 5% only?
For a refinance you cant get to 95% with the two main insurers, and get money out, even though for one their guidelines say they will. If you go outside of them, then the rates will rise significantly. Obviously your strategy will determine if you want to pay the cost.
If not, factor in 90% LVR only.
Regards
John
Inspired Finance
(02) 9944 7776
[email protected]
http://www.inspiredfinance.com.au