All Topics / Help Needed! / Equity Access?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of glennyglenny
    Member
    @glenny
    Join Date: 2004
    Post Count: 6

    Hello All,

    After recently finishing Steves latest book, im full of enthusiasm to purchase my first +ve CF property.Ive been searching the market for a few months now, and have found a few potential purchases, but I dont currently have the deposit available to make the purchase.

    I currently own 1 property (our home) with approx 70-90G equity. Is it worthwhile accessing this equity now to get into a +CF property? The other option is to save up the deposit which may take longer than 6 months. Any ideas?

    Glenn

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Are you sure about how much ‘useable’ equity you have?

    It would be better to tell us how much your property is worth and how much is outstanding on your loan.

    _____________________________________________

    The poster formally known as The Mortgage Adviser

    When I grow up, I want to be a Storm Trooper!

    Profile photo of glennyglenny
    Member
    @glenny
    Join Date: 2004
    Post Count: 6

    The property has just been valued (1 week ago) at 310-330K

    I currently owe 200K. The 70-90K was a conservative est.

    Thanks for your help.

    Profile photo of alfamickalfamick
    Participant
    @alfamick
    Join Date: 2004
    Post Count: 41

    Use the equity! Just make sure you can track it separately and you can claim that bit as a tax deduction. Anything you can save, pay back onto your own home because that’s not a tax deduction.

    Keeping things at 80% LVR, you really only have about $50k – you could use that to buy over $200k worth of IP plus all costs and stay under 80% LVR.

    I say go for it :-)

    Cheers,
    Mick

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    What Mick said!!!

    It would be easy to increase your loan if you service. There are options if you don’t. Expected rental income from the new purchase can also be used to help with servicing.

    Good luck.

    _____________________________________________

    The poster formally known as The Mortgage Adviser

    When I grow up, I want to be a Storm Trooper!

    Profile photo of glennyglenny
    Member
    @glenny
    Join Date: 2004
    Post Count: 6

    Thanks for you advice- Its amazing how the old FEAR factor tends to creep into the equation.

    Next step…of to the Bank

Viewing 6 posts - 1 through 6 (of 6 total)

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