How much can i borrow ?

Viewing 7 posts - 1 through 7 (of 7 total)

buddy fox
Participant
@tjamuna1
Join Date: 2014
Post Count: 10
November 11, 2014 - 8:19 pm
Hello guys
very broad question I know !!!
but am in the process of looking for another ip and I do not want to use my old broker
MY SITUATION
currently have 2 ips with cba one of them borrowed 106%
both CF+ full doc loans.
i currently have 20k in savings and i am looking to borrow as much as i can without realizing equity ! !
i take home 850pw and have no liabilities what so ever would like to buy between 250k-290k
What are your thoughts on my situation ? do i need more savings etc
please ask for more information if required
PHP
Participant
@php
Join Date: 2014
Post Count: 111
November 11, 2014 - 9:07 pm
Hi buddy fox,
Please tell us your two IPs are not crossed? If it is, you need to get this fixed ASAP before doing anything else.
20k savings is not enough for your target price range. Why don’t you want to use equity in your IPs?
The information provided is very limited for us to provide you with a much more accurate answer.
I would focus on fixing the two x-colled properties first (if they are crossed) and at the same time structure your finances to your benefit. Using cash on your next purchase won’t give you maximum tax advantage too. Paying it to your current PPOR loan (if you have one) and then redrawing it again will get u great IP tax benefit due to increasing your tax deductible IP debt.
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Benny
Moderator
@benny
Join Date: 2002
Post Count: 1,416
November 11, 2014 - 9:28 pm
Hi tjamuna,
i am looking to borrow as much as i can without realizing equity ! !
Does that mean you are looking to take out a Personal Loan then? Or use a credit card? Is there a particular reason you DON’T want to draw on equity?
Benny
PHP
Participant
@php
Join Date: 2014
Post Count: 111
November 11, 2014 - 9:49 pm
i was curious as to why you don’t want to tap into your equity. was this advised by your old broker?
my only guess would be that you have probably calculated a negative cashflow if your current IP loans were to be topped up.
PHP | Mortgage Station Pty Ltd
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TheFinanceShop
Participant
@thefinanceshop
Join Date: 2012
Post Count: 1,271
November 11, 2014 - 11:05 pm
buddy fox wrote:
Hello guys
very broad question I know !!!
but am in the process of looking for another ip and I do not want to use my old broker
MY SITUATION
currently have 2 ips with cba one of them borrowed 106%
both CF+ full doc loans.
i currently have 20k in savings and i am looking to borrow as much as i can without realizing equity ! !
i take home 850pw and have no liabilities what so ever would like to buy between 250k-290k
What are your thoughts on my situation ? do i need more savings etc
please ask for more information if required
1. Sounds like you are cross securitised – fix that up ASAP
2. Do an upfront valuation and access the equity and try and borrow 105% of the purchase price (or as much as possible) without cross securitising any properties.
3. Ensure that loans are interest only w/ linked offset. Accumulate all your funds in that offset.
4. CBA is a very conservative lender when it comes to servicing so plan for this long term
TheFinanceShop | Elite Property Finance
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Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
November 12, 2014 - 10:50 am
Hi Buddy
You’re not going to get too far with $20k savings for an IP purchase.
If you’ve got equity it’s best to use it – and if the purchase is for another IP it will be deductible anyway.
You should get those loans uncrossed too.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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DaOne
Participant
@daone
Join Date: 2008
Post Count: 38
November 13, 2014 - 12:18 pm
You need to consider 2 issues:
Servicability & Funds to Complete
Funds to Complete: To buy an IP worth $290k, you will need min. of approx. 13.5% of Purchase Price to cover costs. Potential to release equity (if available) plus the 20k you already have
Servicability: To improve your servicability, Make sure you are on Interest Only and use a different Lender for the new IP.
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- This reply was modified 10 years ago by DaOne.
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