Hi all,
I have alot of my cash currently tied up in a good investment (can’t refinance the investment), but want to be able to invest in a few properties coming up. I have a good income of $120k, so access to significant loans (around the 800k mark), but am lacking deposits.
I work for a bank so can get very good finance deals with 10% deposit and no LMI. I can also access personal loans at a hugely discounted rate.
If I have $40k in my bank account, could I borrow $40k as a personal loan for my next investment property (around 400k) and then use the initial 40k for a second investment property also around 400k in value?
How much would the personal loan of 40k impact on my mortgage limit? just 40k less or is there a higher multiplier?
Thanks,
MattPersonal loans are usually short terms like 5 or 7 years max. That means the repayments are very high and this will affect serviceability much greater than a home loan of the same amount.
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
Thanks Terry,
Thats what I was concerned about.
My other idea is lending myself money from my super fund at 10% return. Does anyone know if this is allowed under a SMSF?
I don’t have enough in my super fund to get a loan on its own, but would have enough for a property deposit for me personally.
You are unable to access funds from your SMSF for a deposit on a property which you or a related party purchase.
Richard Taylor | Australia's leading private lender
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