Hi all,
i am considering purchasing another property, i have one already, with little equity unless i put more cash in. However with purchaing another property for around 450k i dont want to spend all my cash on all the damn taxes and fees needed to purchase property in this country. Also want to use as little possible of my cash to use as a deposit, as i want to purchase some toys (eg boat)
Just after some advice on the best way to do this as i am new to prop investing..
ThankyouYou will need at least 5% deposit and maybe 10% and have all the borrowing costs such as LMI as well as stamp duty etc. So all up you will need 10 to 15%.
The best way to proceed is to use no cash but to borrow from an existing property. If you have cash you should be paying this off the loan on your main residence first and then reborrowing it by setting up a separate loan split. If you have no equity and no cash, then you will need to wait till you do.
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 i do have cash, around 35 percent of the home value. I just hate to see my cash go towards Stamp duty and fees.! How much could be received back at tax time in a percentage figure approx? thx
Do you have a PPOR loan? Any equity in that property?
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
No ppor residence load, im just renting until i decide either to stay in oz or move overseas for a while. I have about 80k cash and 50k in shares. I would love to keep as much as possible. I have left little equity in my current ip, but i guess i can transfer money into pay off some of that loan?
In that case it probably doesn't matter whether you pay into the loan and redraw again as your tax position would be the same.
It is probably best to go for the highest LVR low as possible and to minimise your cash.
Do you have any equity in the other property? maybe you could squeeze a bit out?
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 again terry, great help !
i have sqeezed out most of my equity in the current ip, so, not really!
i guess i just got for the mortgage insurance and highest lvr loan possible?
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