Looking for some idea's
I have located an I.p in Victoria, can any one explain the legalities of making an offer in Victoria, do I need an Solicitor/conveyancer. Also as its my first time to make an offer in Vic, what are some of the things I should be aware of etc.
I do not need finance, as I have the cash to pay full price and cover costs how ever I do not want to use all of my own cash if I can find a better way to structure this purchase.
I have 1 property in NSW that has no mortgage over it and still have 70% equity available in my PPoR that I could tap into but I want to avoid tying up two titles on one loan and or cross collateralizing.
Any idea's appreciated ?thanks in advance..
NucopiaDepends on the location – in the country verbal offers are the go. In metro- written offers are the norm.
Thanks Maree
I made an offer to the agent and its been accepted conditional on building and pest inspections.
Need to get these organized asap and find a good conveyance/Solicitor.
looks like a busy week aheadHello Nucopia
Why don't you just use your cash for 20% of the price (to avoid LMI) and costs and take out an IO loan on the new IP for the rest?
Make sure you have an offset account with this loan and put the rest of your cash into this.This way you have:- a stand alone loan
no interest charges
easy access to your cash if you find another IP or want to go on a world trip.From your post above I assume your PPOR also has no mortgage on it.
I'm anything but an expert but this seems easy and logical to me.
Cheers
ElkaHi Elka
Yes, I was also thinking to do this, pay 20% and borrow an IO loan for the balance and leave the money in the 2 offset account I have on my other loans.
I have 4 IO loans 2 x 98K over 2 properties still have 40% equity left on both. both fixed for 3 years.
1 x 48K still have 70% equity on this I.P and its linked to an offset account.
On my PpoR I have a 127K IO loan with an offset account and the bank said I have used only 29% of the equity from its value of 3 years ago… so I still have 71% equity left..
Holding a bit over 80K cash which I divide between the 2 offsets accounts Loan repayments amount to about 2K per month with the offset accounts…. rental income is $2,440 per month so I have about 400 monthly left over to save for Rates insurance and so on.
I still have one I.P with out any mortgage over it and valued at about 125K…
The Ip I'm looking at is only 70K with a tenant paying $135 weekly($540 Month) I can borrow 50K @ 8.3% with repayments of $406 per month and I will still have $130 left over per month( hopefully), after I pay the IO loan if I get it….
I was thinking , I need to structure things a little better to take maximum advantage of my situation….
I was also thinking to pay cash get the title and use both titles to draw down 80% equity from both titles for further property purchases ..still need to save deposit this way….
I,m getting a good discount on this one for cash , but I can still organize a loan over it if needs be..
???
nucopia
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