Hi,
I am hoping someone can provide some insight regarding financing.
I have recently sold a property and walked away with approx. 100K. I have started building a house (300K) that will be an IP. I was going to loan 90% and fund the payments from the $100K (while house being built) prior to tennants taking over the payments (prob about 8 months build time).
I also plan to build my own house prob. next year and will have had tennants in the IP for approx. 6 months. I would expect to pay around another 300K+ for my own property.
I would assume the bank would see the income from the IP as income when making a decision to lend the next 300K or is this not the case? I would hate to setup the IP but not be able to build my own house !!
I am interested in any thoughts
Borrowing further money will depend on your other income. I would expect the rent from the investment property would be added to your other income in working out how much you can borrow from the bank.
MR ECCENTRIC,
My intention was not to affect my cashflow by servicing the loan via my own income. Rather I would service the loan from the 100K only while the IP is being built and then when rented, tenants would take over loan payments.
Currently we have two incomes but wife is due in Sept (and wil not return to work)therefore we do not want to impact cashflow. We are using a registered builder.
Does this make sense? or is there a better way?
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