Hi all,
I bought my first property 12 months ago and have really been bit hit by the property bug and can see the gains that can be made with proper planning and strategy.
I would like to get my first invest property in the near future, buy doing a quick reno (im a chippie by trade), create equity and boost rental price i can ask for… and this would hopefully have me kick started for my second investment property.
My question is how much equity do i need on my ppor to buy the investment property and to get money to finance the initial renovation, what are my options there in unlocking the dough. I want to be aggresive in doing this without rushing things, and want to do things properly and not compromise my quality of life.. i.e not having to eat baked beans for 5 yrs to save for another deposit.
your help is much appreciated
I went through a similar experience late last year purchasing 2 properties using equity in my own home, just go to the bank your house is with explain what you want to do, they will evaluate your property see what its worth what you have paid off it and see how much equity you have generally the bank will lend $5 to every $1 you have in equity.
Being a chippy you should be able to increase value in a property pretty easily by doing a low cost tenant friendly reno on a proeprty adding real value and preceived as in paint job etc then go back to the bank and get it valued and see what equity you have gained.
I don't mind using a 10% deposit even though you do have to pay lender mortgage insurance its still less than another 10% deposit so you use less of your own cash.Hope this helps
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