Hi there

Any reason why you have to sell? Looks like you've got some equity available in the first property that you could possibly access to fund the deposit/costs on another property.

Cheers

Jamie

Hi and welcome aboard

There's a couple of ways to do this.

Most bankers and a lot of brokers will simply cross collaterise your home with your investment. They do this by taking your home and using it as security for your investment property. This isn't ideal – it gives the bank too much control of your assets. It's great from the banks perspective but not yours.

The best approach is to avoid cross collaterisation and avoid using your home as security for your investment.

To do this, you'll need to have three loans set up. The first is your current home loan, the second is an equity release against your home (which covers the deposit/costs on your IP) and the third is the investment loan.

So for illustrative purposes, let's assume you're buying a $100k IP. The loans would be set up something like this:

PPOR

Loan 1: Your current home loan

Loan 2: $25k equity release to cover a 20% deposit and costs (such as stamp duty, etc) on your $100k IP 

IP

Loan 3: $80k loan to cover the remaining 80% balance of your IP (this can be with the same or another lender)

Now this is just a general structure – and may need some tweaking depending on your circumstances and longer term goals.

Hope that helps.

Cheers

Jamie

lol – they're open to others on request. I think they might just accept you.

Cheers

Jamie

Richard's spot on. It doesn't happen over night.

As a start – surround yourself with some good people – a decent accountant, finance person and a BA if required. 

I'm not sure how you're going to go with finding CF+ properties in Melb  – you may have to look at other areas (but happy to be corrected).

Cheers

Jamie

OK – it's important that you set up the loan as interest only with an offset rather than principle and interest. This article I wrote explains the concept.

Cheers

Jamie

Hiya

If you're going to pay down any loan it should be your PPOR – not IP. The reason is due to the PPOR debt not being deductible whereas the IP debt is.

Is there a chance this new PPOR could become an IP as well at some point?

Cheers

Jamie

Hi Paul

Tread carefully and don't second guess yourself – they will try and convince you otherwise but the fact of the matter is that the advice they are providing is wrong and will cost you in LMI and poor structuring.

Cheers

Jamie

Hiya Waydo

There's been a fair bit of activity in West Syd for a while now – I had clients only a year or two ago buying for low $200's – now they seem to be selling for a fair bit more. It's a big area though and there will always be opportunities. Personally, I'd keep my eyes open on other areas too.

Cheers

Jamie

Hi Paul

You may need to look a bit further aboard and use one remotely if you're after extensive IP experience. I can't think of any – but could possibly point you in the right direction in Syd.

Cheers

Jamie

Hiya

Usually just need to provide the statement for the account that the deposit/costs are coming from.

CBA will want to see statements from your main transaction account if it's not with Cba.

Cheers

Jamie