Hi all,
5 years (1 wife, 2 kids and a dog) ago I had 2 investment properties (in Sydney) and knew a bit about what I was doing. I sold the investment properties to get married, buy a family home and allow my wife some time off work with the kids.
Now we are looking at stepping back into the market. We currently live in Sydney in a property valued at $900K, with a mortgage of $600K. Can we take a 110% investment loan to cover the purchase and costs of the property or do we need to draw down on our equity?
Any help advice would be most appreciated..it seems such a long time ago that I did this…cheers
Bugger me!! You have a $600k mortgage on you PPOR and you think you know what you are doing? Yikes…..
Jack
Fine taking a 110% loan but make sure the IP loan is set up correctly and not cross collateralised with your PPOR.
Your friendly Bank manager will suggest this is the way to go but he has interests at heart and not yours.
Separate standlone loans are the way forward to avoid complications down the track.
Richard Taylor | Australia's leading private lender
Hi Jack,
Establishing a line of credit (LOC) off your home may provide more flexibility to fund future investments. These interest rates are often higher however, you could use the LOC for the deposit (20%) plus costs (approx 5%) and then use another cheaper loan for the balance required (80%)
This will also ensure the properties are not cross securitsed whilst still acheiving 110% (or 105%) finance – plus no lenders mortgage insurance is payable.
Kind Regards
Chris White
Prosper Group
http://www.prospergroup.com.au
1300 664373Chris White | Pillar Property
http://www.pillarproperty.com.au/
Email Me | Phone MeThe Property Investment Specialists
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