I got $200,000 from the $40,000 equity in the first property (Value $120k minus amount on loan of $80k).

$40k being the deposit to get the loan of $200k.

If the person had this $40k in equity, couldn’t he buy another property worth up to $120k so the total of his portfolio is $240k (using $40k equity as a deposit for the $200k loan). He would…[Read more]

Oops, I didn’t explain that very well.

The situation involves two properties – one they currently own and looking at purchasing a second one. These are not real figures but I’m trying to work out some concepts. Probably very easy for some people but I have to start somewhere.

Amount owed on existing property – $80,000
Today’s value now -…[Read more]

Hi Everyone,

Wow – This info has changed my perspective alot and given me more flexibility.

The first property I have bought is negatively geared and returns about 4.8%. I always wanted to get more property but did not think I’d be able to get more financing.

I would like my second property to be positively geared so that it offsets the first…[Read more]

Nice reply Mortgage Advisor!

I gave ING Direct a phone call and have offered a hansome package which will allow me to buy more properties. They are offering up to $800k @ 6.74%. Will still look into it further but it gives me some flexibility knowing that I can get financing. I’m not looking at refinancing before the financial year. I’m going to…[Read more]

That’s the response I was after. I talked to them this morning about this and still stuck to their argument that it’s better to pay more interest to get the tax savings than to pay less interest and abit more tax with more money in my pocket. I then said what you guys said that I might as well give money to charity because that’s tax deductible as…[Read more]