Hi All,
Can anyone inform me of the details of how to recycle the deposit from one property to get another. What are the key points to apply, such as buying below market value and how much below. To allow for the increase in the mort when you use the equity to take another deposit out
also how do you utilise a credit facility. We have one and have used the funds from that to purchase so the home is freehold we used another home to carry the mort how do we get the funds back in the credit facility so we can start again
hi jtrq100
I’ll get to you before the hounds do.
you need to have a read of some of the old posts there is alot of information on splits loans and leveraging.
You seem like a new investor like me so you need to learn and the first part of learning is understanding so thats my advice go back say 2 weeks and have a read.here to help
Are you saying you buy houses for cash by using your LOC? If so, then this is an excellent way. What you can do then is to get a mortgage on the property, release your money back into the LOC and to go again.
If you can buy well, and/or do quick improvements, you may be able to end up with 100% finance. eg buy for $80,000, do up, value comes in at $100,000, the bank lends you $80,000 against this = all your money back for the next one.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
hi terryw
and caveat lend any short fall cash flow you don’t have to finish the project.
but read first.
or talk to a broker.
not mehere to help
how terry i don’t understand how the money gets released back into the LOC after i get a mort on the home please can you explain
You mortgage the new property, the lender will give you a cheque or a LOC etc, and you can use this for the next one.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
To add to Terry’s excelent comments,
It doesn’t necessarily have to be a LOC, you can also achieve this with a split loan, offset etc. 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.
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