i live in nsw and my income is $30 000 per year before tax. i own my own house worth $300 000 and i am half way to paying off my first rental house worth $300 000. what do you think my chances are of obtaining finace to purchase a second rental worth $325 000 with only a $10 000 deposit
You can buy one right now with a NODOC loan at 7.1%.
However with a FULLDOC product I would need further info to ascertain your borrowing ability.
This isn’t too much help and I suggest you speak to someone in my profession to get the numbers run for you.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Jadam
There are many lenders who offer a nodoc facility for clients just like you. The interest rates are standard.
In saying that you may still qualify on a normal serviceability anyway.
Cheers
Richard (Qlds007)
[email protected]Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Jadam,
$10K is insufficient to cover your stamp duty & closing costs on a $325K purchase let alone a deposit.If you have equity I would suggest you could use that to fund the 20% deposit and associated costs, then set up a separate loan at 80% LVR secured by the new purchase, this structure will avoid crosscolaterisation and the need for LMI. 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.
I agree with Mobile Mortgage. Get a loan on your PPOR (your home) to purchase the new invetment property. Remember that your total property is worth $925K and you debt levels at $475K which means you are only have Loan to Value Ratio (LVR) of 50%. which is quite low in my opinon.
Just make sure that you are making enough to cover mortgage repayments. Also as a side note if you borrow the money on your house it is more tax effective as you can get a deduction for interest repayments (reducing your personal income tax). Then you could save your hard cash for a rain day or to pay down some debt or add to your super (which could even be more tax effective as you might be able to claim for salary sacrificing (15% tax rate) and also the gov. might co contribute some additional monies – I worked out you arre likly to recieve $1,400 which is like making 14% return on your money – not too bad esp since the gov pays it. If you can’t do a lump sum, simply live of the $10K and sacrafice $10K of your income into super). just a thought [blush2]
Hellman
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