Hiya
I need some advice if you wouldn’t mind. I currently am paying off a house (owner occupied) in Brisbane (150000 left owing) current value approx 330,000. I also have mortgages on 2 other investment properties in Brisbane both of which are negative geared. I would like to build my equity up more but I just don’t know how I can afford it. Should I look at positive geared property? And if so where would I obtain the deposit (not enough equity as has have now borrowed 110% for other investment properties)?
HELP!!!!! I wonder some times if I am doing the right thing. Should I maybe sell????
Hi Happy Bandit,
Im not sure why you borrowed 110% for the investment properties when you have equity in your PPR?Regarding your question on obtaining deposits, you could use the equity in the PPR, currently $114.000 @ 80% LVR, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Mobile Mortgage
The reason is because I purchased IP #1 for 266,000 and IP#2 for 320,000 so I needed some 40 or 50,000 in equity from my PPOR. Not sure how much equity I have left from that. Is there a way to find out? If so, would it be easist then to use this remaining equity to put down on a CF+ property?
CHeers
Hi Happy Bandit,
The amount of equity remaining will depend on the value of your PPR less the balance remaining on your current loans that are currently attached to your PPR.The amount of equity available will vary depending on the LVR (Loan to value ratio) but I would suggest no more than 80% LVR in order to avoid LMI (Lenders Mortgage Insurance)
I’m also concerned on how your finance was originally structured in order to access the $40K or $50K in equity for deposits on the investment properties.
I will need further info from you, but I think it best for your sake that you contact me by phone or email to discuss this in much more detail as I suspect you may be on a very steep learning curve regarding finance structures, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hey Bandit,
I am just wondering if you are using an offset facility on your non deductible debt portion. This would certainly help improve your cash flow position if used properly with all your other loans.
Also, are all your loans set as interest only?
Being able to afford to keep going sometimes requires some slight adjustment to your existing portfolio and a change in direction. As you have found out, negative gearing results in your income going backwards. It is good to see you looking at positive investments into the future.
I look forward to hearing from you.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
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