HI sorry if your used to these sort of posts, we are quite new to this. Story so far we bought a property for $211,000 with the FOHG over 15 months ago and we bevlive that the property is worth in value approx $240,000 after completed some reno work on the property. We are looking to get another property but unsure what we have to do as we dont have deposit as sunk all we have into this house and its just about to be rented out. My question can we use what little equity is in the house to get another IP even though its not that much ?
Cheers
MarkYou do not give enough information for anyone to give you any advice that would be worth paying attention to eg how much do you owe on the mortgage, expected rent, what your income is, is anything going to affect your income eg children, how much you are proposing to borrow for a second IP etc etc
Thanks CRJ sorry but Im a newbie here so will try and give as much info as –
Ok I recall we now approx owe $198,000 outstanding on the house
We jointly earn $170,000 per annum – we are in great jobs
We rent a property we now live in at $450 per week
Mortgage is $1,200 pm fixed for next 3 years
expected rent is $990pcm
NO other outgloing apart from $200 pm car loan, no credit cards No kidsLooking wanting to borrow up to $300k for another IP
Next year we would like to buy a property for us to live in and not rent anymore at approx $600,000.
Hope that helps
Hi Mark
Regretfully i dont fancy your chances as there is clearly insufficient equity in the property and the maximum lvr you will get these days on a IP is 95%.
With the current property being an IP already you probably dont want to pay down the debt to increase your equity so are limited to your cash funds or the available equity in the current property.
At a 90% lend on a new valuation there is next to nothing in the current property even if the valuation came in at $240K.
Richard Taylor | Australia's leading private lender
This may be possible Mark, what state are you intending to purchase in? What would be the purchase price? On that income are you saving any funds?
On second thoughts, maybe PM me and I'll get some more info from you.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
