All Topics / Help Needed! / Stepping back into the investment game

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of jackjackjackjack
    Member
    @jackjack
    Join Date: 2003
    Post Count: 1

    Hi all,
    5 years (1 wife, 2 kids and a dog) ago I had 2 investment properties (in Sydney) and knew a bit about what I was doing. I sold the investment properties to get married, buy a family home and allow my wife some time off work with the kids.
    Now we are looking at stepping back into the market. We currently live in Sydney in a property valued at $900K, with a mortgage of $600K. Can we take a 110% investment loan to cover the purchase and costs of the property or do we need to draw down on our equity?
    Any help advice would be most appreciated..it seems such a long time ago that I did this…

    cheers

    Profile photo of blogsblogs
    Participant
    @blogs
    Join Date: 2005
    Post Count: 418

    Bugger me!! You have a $600k mortgage on you PPOR and you think you know what you are doing? Yikes…..

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Jack

    Fine taking a 110% loan but make sure the IP loan is set up correctly and not cross collateralised with your PPOR.

    Your friendly Bank manager will suggest this is the way to go but he has interests at heart and not yours.

    Separate standlone loans are the way forward to avoid complications down the track.

    Richard Taylor | Australia's leading private lender

    Profile photo of Chris WhiteChris White
    Participant
    @chris-white
    Join Date: 2006
    Post Count: 65

    Hi Jack,

    Establishing a line of credit (LOC) off your home may provide more flexibility to fund future investments. These interest rates are often higher however, you could use the LOC for the deposit (20%) plus costs (approx 5%) and then use another cheaper loan for the balance required (80%) 

    This will also ensure the properties are not cross securitsed whilst still acheiving 110% (or 105%) finance – plus no lenders mortgage insurance is payable.

    Kind Regards

    Chris White
    Prosper Group
    http://www.prospergroup.com.au
    1300 664373

    Chris White | Pillar Property
    http://www.pillarproperty.com.au/
    Email Me | Phone Me

    The Property Investment Specialists

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

You must be logged in to reply to this topic. If you don't have an account, you can register here.