Daniel wrote:

– Firstly, is it feasible to use equity to purchase second property?– Any recommendations for type of loan for second property? e.g. line of credit / low doc, etc– Is it a good idea to put into company name so each property has its own company? Is there a typical structure that’s usually recommended for investors?

1. You can use equity to purchase a second property providing there’s enough equity to access and your borrowing capacity enables it.

2. In terms of which loan to recommend – it’s impossible without knowing the finer details of your situation which can only be done via a fact finding session

3. A typical structure for investors involves setting up a second loan/equity release against an existing property and then another (separate loan) against the IP.

Cheers

Jamie

Storeybuilder wrote:

On an investment loan, can I claim break fees, providing the purpose of the loan is to refinance solely for the investment property?Has anyone had any experience with paying interest on mortgage a year in advance? Can you tell me how this went?

I’d assume it’s a deductible expense – but ask an accountant.

Interest in advance is available with quite a few lenders – you basically prepay in advance at a predetermined rate (usually a discounted rate). I’ve done this a few times for clients. Again – speak with your accountant to see if it’s beneficial.

Cheers

Jamie

Calculating max borrowing is quite complex in this new post APRA world of lending – especially for those with a few IPs under their belt.

Best bet is to get a decent broker to look into it for you – Richard above would be a good start.

Cheers

Jamie

CBA, Liberty and I’m sure some others will allow high LVR against IPs still.

However – LMI is expensive!

As has been mentioned – 88% LVR is generally a good compromise. Credit scoring isn’t as harsh and LMI is not ridiculously expensive.

Cheers

Jamie

An Aus bank won’t lend against a UK security- but as Jerry mentioned – try and get a UK lender to release the funds.

Cheers

Jamie

Tom wrote:

but the bank will only lend me 180k…..

Hiya

The best solution is to get a second opinion.

One bank can advise on their one set of policies and their one borrowing capacity calculator.

A good broker will be able to advise on dozens.

Cheers

Jamie

San wrote:

@Benny, @jamie, Are you investors?

Yes.

Cheers

Jamie

Paul Gerrard from Price Financial is very clued up.

Cheers

Jamie

Agree with Terry.

You need a second loan split set up – not just an increase to your existing loan.

Cheers

Jamie

Terry W from here.

Cheers

Jamie