Hi All.
I am new to this forum and having read some of the topics it seems a great place to bounce ideas off like minded people and others with much more experience. So I am asking for some help.
My dilema is the following. I have a loan on one of my negatively geared properties which is maturing ($195K 5yr fixed interest) end of Feb 05 and I need to refinance. At the same time I am looking at buying some more properties but with a +CF (I have seen the errors of much past life..)using equity in my home (existing $380K loan, $300K equity)to fund my upfront costs.
Just curious to see what you would do given the scenario above. I would value my neg geared property at $280K
All comments, suggestions most welcome….
Cheers
Lionel
[thumbsup2]Question- What sort of loan is the one on your home eg: variable, LOC , 100% offset.?
Because you still have a debt on your own home you nedd to structure it so you investments are interest only and you are making principle reductions to your home.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
I agree that is the idea, to keep paying principle on my home and interest on the investments.
My home loan is a line of credit ($400k limit). I was thinking of using a second mortgage on my home to access the equity, but I am not sure if this is the best option?
Cheers
Lionel
[thumbsup2]Second mortgage is too expensive.
You might need to refinance or speak to your present lender about increasing your existing debt on your home by getting another loc/loan to access your equity.
Have you checked if you can service an increased loan?
How much are you looking at increase your borrowings?
If you don’t want to post any more personal details on here feel welcome to message me.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
I am interested in why you say “(I have seen the errors of much past life..)”. It seems like you have done well!
You seem to have lots of equity, so if you are working you should be able to buy a few more properties – possibly several.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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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