Hi Elle

If your borrowing capacity allows, you could tap into the equity in your current property and use it to cover the deposit/costs on your next property.

You could then move into your next property and place your current one on the market. If it doesn't sell quickly – get some tenants in there so you can generate some income from it. Only downside is that it might be more difficult to sell if tenanted.

Cheers

Jamie

Hi Tim

Why restrict yourself to just the one bank? All lenders have different way of assessing borrowing capacity – chances are there was a lender out there who would have provided the additional $50k.

Cheers

Jamie

Best to seek professional advice from an accountant.

If it's genuinely your PPOR than I would have thought it's CGT exempt. However, if your flipping a number of properties while claiming to live in each one – it might be seen as being more commercial (and I'm not suggesting you're doing this – but this question often stems from this scenario).

Cheers

Jamie

Hi Chanakya

Best to get in touch with Richard and have him structure things correctly from now on.

Here's a blog entry that I wrote which explains your predicament and how to avoid it in the future.

Cheers

Jamie

Brokers get paid an upfront and trail commission (some lenders don't pay trail) on the loan.

The level of discount they arrange on the loan has no effect on the commission their paid – not that I know of anyway and certainly not with ANZ.

A decent broker will aim to get the best deal possible for their client irrespective of the commission they're paid – any broker that puts their income in front of their clients needs won't last long in the industry.

Cheers

Jamie

It makes sense to use the equity in your current property to cover the deposit/costs.

Are you happy to chip in the whole lot for the deposit/costs or would you prefer it to be a more equitable contribution between you and the person your investing with? Sorry if that sounds silly – just difficult to know from the original post if your investing with a spouse or a business partner. 

Cheers

Jamie

Hi and welcome aboard.

Check on this post https://www.propertyinvesting.com/forums/legal-accounting/4347251

Cheers

Jamie

No worries – ill get back to you today.

Cheers

Jamie

I wouldn't bother with online calcs – especially not for an IP purchase. Not very accurate. Banks can vary widely on what they deem a borrowers max capacity to be also.

Cheers

Jamie

Hi Sam

Look at previous sales and current listings of comparable properties. Your banker/broker should be able to generate reports for you on the property that provide this info.

Find out the sellers motivation for selling – see if there's anything you can add to the deal as a sweetener such as a quick/long settlement period.

Building/pest inspections are a must.

Have your solicitor review the contract.

I'm sure there's plenty of other things to consider.

Cheers

Jamie