Hi there

Welcome aboard.

There's a difference between useable equity (what the bank will let you access) and actual equity.

For instance, just say you owned a property worth $100k and you had a $50k loan and the bank your with will let you access equity up to 80% of the properties value.

In this instance, you have $50k in actual equity ($100k minus $50k) and $30k in useable equity (80% of $100k = $80k. You then take the $80k and minus the current loan of $50k and you're left with $30k that you can access).

How much is your current IP worth and how much is the loan against it?

How much are you wanting to spend on the next property?

It doesn't sound like your bank is being overly helpful. They will no doubt also try to cross collaterise your IP with your next purchase as well.

Cheers

Jamie

the bank let you access equity up to 80% of its value

Thanks for the kind words

Cheers

Jamie

Tread carefully and don't get sucked into the one stop shops that provide investment advice, sell you the property and arrange finance….especially if it involves an off the plan purchase.

I haven't heard of McCarthy group so I'm not sure what they offer.

Cheers

Jamie

Hi Free Dom (nice name)

Welcome aboard.

In terms of equity, you're in a decent position to kick off your portfolio.

If you've decided that property is the way to go, I'd encourage you to tap into the equity now and leave it sitting dormant until you actually need to use it. That way, when an opportunity does present itself, you're in a position to act. I've got a few clients at the moment where I'm doing an equity release and purchase application at the same time and it can be a pain (I vented about it in a recent API article).

In terms of what sort of properties to purchase – I'll leave that one to you to decide. Personally, I have a preference for houses as well – particularly those that can do with simple, affordable, cosmetic renovations that add value quickly and also enable you to increase the rent.

26 is a great time to start – property investing, for most people, is about long-term wealth creation so the starting young certainly has its benefits. Besides, with two already under your belt and with a fair bit of useable equity, you're already off and running.

Cheers

Jamie

Hi Mick

Feel free to email me and I can run some scenarios for you.

Cheers

Jamie

Hi there

Welcome aboard.

Not sure if I’m reading this right but did a better property recieve a max bid of $150k?

Cheers

Jamie

Yep, sticking with ANZ for your current loan is likely to be the best option.

It's hard to comment whether sticking with them for the next is the best option based on the limited info available.

Cheers

Jamie

Hi Mick

The first you thing you need to do is look at your own household budget and ensure that you can actually afford what you're proposing to do first.

If you've worked out that you can actually afford it – I'd then speak with someone who has access to more than one lender who will be able to run some scenarios and work out whether it's feasible from a borrowing capacity point of view.

Cheers

Jamie

+1

My clients have used her and have been happy.

Cheers

Jamie

It's really frustrating to hear stories like this – and it's so common it's not funny.

The bank is making a huge mess of your finances and acting purely in their own best interest.

You should seek expert advice elsewhere.

Cheers

Jamie