best way to finance ?

Viewing 8 posts - 1 through 8 (of 8 total)

SNAVE
Member
@snave
Join Date: 2004
Post Count: 3
February 29, 2004 - 12:27 pm
When we brought our first ip we borrowed 100% against our own home.We are now looking to buy another ip are we best to borrow 100% against our own home or should we use the equity in our home as a deposit and only borrow 80% on our next property.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 29, 2004 - 12:39 pm
I generally prefer the second option.
Depends on the exact situation though.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
FYI
Member
@fyi
Join Date: 2004
Post Count: 27
March 2, 2004 - 6:33 am
I would encourage you to look at your current debt structure. If repayments are easily affordable, and you have no personal debt on your home, borrowing 100% may be better for you tax-wise. You should ask your accountant as well.
[]
matt@fyimi.com.au
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
March 2, 2004 - 6:36 am
Matt,
Both are 100% lends…
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
FYI
Member
@fyi
Join Date: 2004
Post Count: 27
March 2, 2004 - 6:50 am
True – Sorry, Wouldn’t you prefer to have an unencumbered property if possible though?
matt@fyimi.com.au
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
March 3, 2004 - 2:59 am
Matt, ‘unencumbered’ to me just means equity that is going to waste!![]
Cheers
Mel
FYI
Member
@fyi
Join Date: 2004
Post Count: 27
March 3, 2004 - 5:23 am
Mel,
This is true – but no matter which property you use, the amount of equity available is still going to be the same.
Having an unencumbered property would open the door for a possible investment based ‘lodoc’ loan in the future for example. (yes?)
Matt
matt@fyimi.com.au
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
March 3, 2004 - 2:23 pm
Matt, that is true – unless you are using all your available equity. But if I have an unencumbered property now, I would be pursuing that option – thus no unencumbered props for this little black duck.[]
Cheers
Mel