Basically I have one IP (used to be PPOR until we moved for work) that I bought for 220k and only have 23k left on the loan and it is rented out for $230 per week.
Also we have 63k savings currently. We have been travelling around for last couple of years and hence both do not have full time stable jobs.
I am wanting to purchase a cheapie and do a reno on it and rent it out. Looking at one under 200k.
My question is, do you think we will get a loan to do this? Can I just redraw my current loan to almost max value then use a little of the 63k to make up the purchase price? Basically can I use the equity in my IP to purchase another?
Also, whilst the reno will be happening, wife will be relief teaching for $63 an hour.
Cheers
Mark.Hi Mark
I think even at a relatively low lvr you will struggle to obtain finance especially given the inception of the new Credit Laws.
Responsible lending has outlawed access to Nodoc style loans and without clear evidence of your ability to repay (whether this comes from rent or part time income) it would be irresponsible for any lender / broker to take on such an application.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It will be pretty hard to get a loan without income these days. It may still be possible with the private type lenders though -rates around 10% +.
If you have redraw, it may not be good from a tax point of view to use without establishing a separate account, but they may be a way to proceed on with your project.
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
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