We are looking at building an investment property in Berwick – Land, House + project costs will total $377,000. We have another IP worth $450 which has $186 equity. So the the recommendation is that we cross colaterise the properties – refinancing the $264,000 owing, establish a new loan for the new property for $363,000 and put in $15,000 cash. Is this the only way we structure the loans? Hope you can help?
Dave
I wouldn’t recommend xcoll or even a refinance if not necessary.
Can you increase the existing debt to cover a 20% deposit plus costs – then you could go for an 80% construction loan?
Would be cheaper methinks.
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.
I agree with Simon, Don’t Xcoll, I would only suggest a refinance in the case of a better rate,structure, etc,
On the proposed new loan amount you would qualify for a discount off the SVR,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Just out of curiosity – is this the Dave Bradley (Steve McKnight’s) partner[blink]…aaahhh….if so – im kinda confused – u being the property guru and are here asking a question…wow
I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
I agree with Steven who agrees with Simon.
Geo I doubt that Dave is the same Dave as Steve’s Dave.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes, it’s a different Dave.
The other Dave Bradley posts under the name “GrizzlyBear”
Brent
‘Phew, just as well!’ I was going to suggest if ‘Dave’ may somehow qualify for the FHOG!!!
Dave,
interesting choice of webpage on your profile! Perhaps you could use you interest there to pay for any new investments????Other than that, it looks as though you have plenty of Capital in your existing home to finance the new property and a separate loan. You just have to show that you can service it with an income.
I took 20% deposit and an extra 10% for closing costs and came up with a rough estimate of $113100 required to set the new house up. You have $186k to cover that. One of the loans would most likely need LMI depending on your lender of choice.
As above, stay away from Xcoll. as it can seriously impede any future investments you might wish to venture into.Cheers
C@34
You must be logged in to reply to this topic. If you don't have an account, you can register here.
