Hello All, can sumone please help.
Im fairly new to investing, I currently have a
-ng property, great location etc so its worth it.
Im locked into a honey moon period of 5.95 till April 05, i have a $400K unit I owe $288K so have about 110K equity a mortage broker will give me around 300k loan, should i take up the offer, or is it better only to use my equity from my loan and wait till April 05 or get out for a fee of around $4000, not sure of the what the best wat to go is. I aalso will have around 50K in cash, dont know what to do with it as sum say to use it as a 20% deposit and sum say dont use it at all, appreciate any thoughts!!!Hi Dangermouse,
I have replied to your PM,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.
Hi Dangermouse,
While you have equity of $110K you need to be aware that only 80% (higher if you pay LMI) of the total value of the property (less existing debt) is recognisable security. As such you really have $32K available as deposits (@80%) or $72K if you go to 90%.
For me I would be reluctant to incur break costs unless I knew I was going to recoup that, and some, in a fairly quick time. Given there are only 6 months to wait I would be tempted to wait for time to elapse and spend the time researching your preferred investment area.
I also prefer to use equity for subsequent deposits and would put the $50k either in an offset account or redraw on your existing property (if able) – this would reduce your monthly interest bill and aid your cashflow situation while still enabling you to have some emergency cash in case of need.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Do you have a PPOR with a loan? If so the cash may be better used by putting it ina 100% offset account attached to this loan.
If you are currently on a honeymoon rate, why not just stay at the same bank and access the equity that way? Either corss securitising or getting an additional LOC on the same property. If you got the LOC, you could even go to another bank for your next loan.
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
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