I’ve been very happy with my one and only IP up until recently when everything has gone to the sh@$. I’ve lost my tenant after 6 yrs and the place needs some medium-major repairs done. At no fault of the tenants though.
I’ve been thinking about selling the place for awhile but after inspecting the other day for my self (1st time in 6 yrs, since it was built) my mind was made up. I’d like to fix everything up and sell BUT:
1: I’d like to borrow against it to assure myself of at least 2-3 more IP’s.
2: If I sold I’d have to split 50/50 with my brother (co-owner) so my borrowing ability will be halved.
See my problem? Is it possible to borrow against the IP now and then sell it after the other IP’s have settled? How long does these settlements take?Thanx everyone
You might have to check what the banks requirements are. If you purchase a second IP, and borrow against the first one, then the first one becomes locked into the new mortgage. You may then have trouble selling the first property because I think the bank has an interest over that property.
Not exactly sure about it though. One of the mortgage broker people might be able to clarify this. I am alao interested to know the answer.
Andrew
http://www.rentmaster.co.nz
Software for LandlordsDon’t borrow against it. Simply draw a 20% deposit from the mortgage and then purchase your next IP with it’s own loan. Do this as often as you can or want.
When you sell the property the bank will take enough from the settlement to payout the loan leaving you with independent lends against the subsequent properties,
Hope this makes sense.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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