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  • Profile photo of tetrismantetrisman
    Member
    @tetrisman
    Join Date: 2009
    Post Count: 3
    March 6, 2009 - 12:26 am

    god_of_money,

    Its just an average quote I got from a couple of REAs.

    Richard,

    (Sorry but I am going to ask some fairly newbie questions)

    Yes it is a P& I loan, I'm fixed for 3 years on it. I am abit slow on the terminology, but what do you mean by capital reduction? And yes the redrawn funds will only be used for investment purposes only. (deposit+initial+closing costs).

    For my second IP would a IO loan be more suited? with an Offset account? Is this offset account simply a savings account linked with the homeloan itself?

    I plan on utilsing only 80% of my equity (trying to avoid LMI) and will be taking out the loan from a different lender (Westpac).

    What are the few other questions which need to be asked?

    Thanks

    Profile photo of tetrismantetrisman
    Member
    @tetrisman
    Join Date: 2009
    Post Count: 3
    March 4, 2009 - 10:50 pm

    G’day Richard, 

    Thank you for your reply.     

    Here are some further details for my current IP situation and the serviceability I can provide to the new loan.      

    IP1:     

    Purchase Price: $260k
    Original Loan amount: $208k 

    Valuation: $280k
    Loan Balance: $193k
    Equity (80%): 32k 

    Rental income: $360/wk ($18000 for 50wks)
    Rental expense: $22,426.20 per yr 

    Current personal income is $65k (inc. super) / yr. Take home monthly pay is $3,400 month.
    Personal expenses (inc. bills and rent): $1,200 / month

    Hmm… with figures like this what possibly could I do? I figured I wouldn’t be able to purchase anything more than 200k? Thanks.

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