Hi,
Im just starting out, and looking to buy my first cf property. The house that i live in is morgage hasd been paid of. Can i use that as equity for my deposit? and how much of it can i use? would that be a wise idea?
Thanks for any help
vadim ozeransky
Absolutely yes.
I would recommend you draw a 20% deposit from the mortgage on your home and also enough for fees.
Hopefully that mortgage is still in place. If not Iwould suggest a Pro Pack with a major lender and ensure the loans are no xcoll.
After you have the 20% dep then you apply fora new loan on the new property.
The advantages here are that the two loans aren’t linked and also that no funds are needed and no LMI is charged.
The total loan would be tax deductible.
Please ask any questions if this isn’t clear,
All the best!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Simon,
Thank you for the information. Like i said that we own the proprty (as a family) now that i live in, the mortgage has been paid in full, so we dont owe any money on it. That is good news that i can draw equity from it. The mortgage has been under my dads name and what we are trying to do is to put 3 incomes together and buy an investment property drawing equity from our paid off property. Would that be a good idea?
what does LMI stand for? and how can you deduct tax from the loan?Thanks
vadim ozeransky
Vadim,
Tax deductions of all costs are available if the property generates income. So the interest is one such cost.
LMI = Lenders Mortgage Insurance – paid when you borrow over 80% of the value of the property.
You need to make sure that all parties understand what they need to do if you decide to invest together – we all have heard stories where families can be damaged by this sort of thing after a disagreement.
I suggest you need to do some reading – Steve’s book is a great place to start.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Simon,
Thank you for your information, very informative.
Financing a loan, would you be able to give me some information as who to see. Is it better to go to a bank or a private lender like Edenlea Mortgages?vadim ozeransky
Edenlea is not a lender – they are a broker like myself and many others.
As I broker I would recommend you use a broker whom you can trust as they will be able to find you a great loan amongst many banks – they also add a lot of experience to your side as well.
To find a broker I would suggest you ask for a referral from family or friends or use one of the folks who contribute a lot to the forum.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Vad baby, one word ‘LOC’
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