Forum Replies Created
Ok thanks Jamie. That sounds easy. So my plan is to hopefully get a good valuation on PPOR. Hope to get $730K (house round the corner sold $790k but up the road for $670 in past few months, so hard to judge being different condition, bedrooms and land sizes)
Getting valued at $730K gets me $84k which would cover the 20% on $360k purchase price of IP $72K and stamp suty ~$12k
Can you get the bank to value my house before I go for the loan on the IP. Already have a pre-approval <moderator: delete language>
wow thanks for some great advice. I am getting a clearer picture of it all now. Will contact my broker for a face to face me thinks.
There 2 statements is the ones I think I need to focus on
"So if possible all costs for the investment property come from loans, none out of pocket.""Call me old fashioned but would anyone use $40K of their own cash savings to cover the acquisition costs when they could sensibily gear this and have the interest deductible."
This is what Ill try and get out of my broker to do. How to fund the IP without touching my $40k in the offset, while not paying LMI
only other bit of info on my situation is my monthly expenses is about $4500, so after the $2700 mortgage leaves me about $2K free a month.
I dont have an accountant due to the last few years I have only had a very simple tax return with limited deductions and therefore use to do it my self online. Looks like I may have to get 1 this time round.
Thanks for the reply Nick,
the property Im am interested in is an older property 30+years, that has had a reno done on it 2 years ago. So new kitchen, bathroom, carpet, timber floors , roof and the rest.
Im fairly comfortable for my first IP getting a place in Western Sydney having grown up and lived/ worked in the area. So I think know the good and bad areas. In the furture I will diversify and try somewhere different. Plus being a tradie, I would prefer to do any of my own repairs if possible.
Just on this comment
"I would only pay LMI if I had to, anyway to avoid is great." So getting an extension on my PPOR loan and taking $60k, am I still able to claim a tax deduction on the interest seeing as the $60K if going to the IP?Also I dont understand this "Tap CBA for a loan for future investment properties equal to 25% of the value of the property you want to buy." Could youy explain further please?
Thanks
Andrew
