All Topics / Finance / How much can i borrow ?

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of buddy foxbuddy fox
    Participant
    @tjamuna1
    Join Date: 2014
    Post Count: 10
    November 11, 2014 - 8:19 pm

    Hello guys

    very broad question I know !!!
    but am in the process of looking for another ip and I do not want to use my old broker

    MY SITUATION
    currently have 2 ips with cba one of them borrowed 106%
    both CF+ full doc loans.

    i currently have 20k in savings and i am looking to borrow as much as i can without realizing equity ! !
    i take home 850pw and have no liabilities what so ever would like to buy between 250k-290k

    What are your thoughts on my situation ? do i need more savings etc
    please ask for more information if required

    Profile photo of PHPPHP
    Participant
    @php
    Join Date: 2014
    Post Count: 111
    November 11, 2014 - 9:07 pm

    Hi buddy fox,

    Please tell us your two IPs are not crossed? If it is, you need to get this fixed ASAP before doing anything else.
    20k savings is not enough for your target price range. Why don’t you want to use equity in your IPs?
    The information provided is very limited for us to provide you with a much more accurate answer.

    I would focus on fixing the two x-colled properties first (if they are crossed) and at the same time structure your finances to your benefit. Using cash on your next purchase won’t give you maximum tax advantage too. Paying it to your current PPOR loan (if you have one) and then redrawing it again will get u great IP tax benefit due to increasing your tax deductible IP debt.

    PHP | Mortgage Station Pty Ltd
    http://www.mortgagestation.com.au
    Email Me | Phone Me

    Give us a call or send us an email for a free residex report.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416
    November 11, 2014 - 9:28 pm

    Hi tjamuna,

    i am looking to borrow as much as i can without realizing equity ! !

    Does that mean you are looking to take out a Personal Loan then? Or use a credit card? Is there a particular reason you DON’T want to draw on equity?

    Benny

    Profile photo of PHPPHP
    Participant
    @php
    Join Date: 2014
    Post Count: 111
    November 11, 2014 - 9:49 pm

    i was curious as to why you don’t want to tap into your equity. was this advised by your old broker?
    my only guess would be that you have probably calculated a negative cashflow if your current IP loans were to be topped up.

    PHP | Mortgage Station Pty Ltd
    http://www.mortgagestation.com.au
    Email Me | Phone Me

    Give us a call or send us an email for a free residex report.

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    November 11, 2014 - 11:05 pm
    buddy fox wrote:

    Hello guys

    very broad question I know !!!
    but am in the process of looking for another ip and I do not want to use my old broker

    MY SITUATION
    currently have 2 ips with cba one of them borrowed 106%
    both CF+ full doc loans.

    i currently have 20k in savings and i am looking to borrow as much as i can without realizing equity ! !
    i take home 850pw and have no liabilities what so ever would like to buy between 250k-290k

    What are your thoughts on my situation ? do i need more savings etc
    please ask for more information if required

    1. Sounds like you are cross securitised – fix that up ASAP

    2. Do an upfront valuation and access the equity and try and borrow 105% of the purchase price (or as much as possible) without cross securitising any properties.

    3. Ensure that loans are interest only w/ linked offset. Accumulate all your funds in that offset.

    4. CBA is a very conservative lender when it comes to servicing so plan for this long term

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    November 12, 2014 - 10:50 am

    Hi Buddy

    You’re not going to get too far with $20k savings for an IP purchase.

    If you’ve got equity it’s best to use it – and if the purchase is for another IP it will be deductible anyway.

    You should get those loans uncrossed too.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of DaOneDaOne
    Participant
    @daone
    Join Date: 2008
    Post Count: 38
    November 13, 2014 - 12:18 pm

    You need to consider 2 issues:
    Servicability & Funds to Complete

    Funds to Complete: To buy an IP worth $290k, you will need min. of approx. 13.5% of Purchase Price to cover costs. Potential to release equity (if available) plus the 20k you already have

    Servicability: To improve your servicability, Make sure you are on Interest Only and use a different Lender for the new IP.

    <moderator – delete advertising>

    • This reply was modified 10 years, 1 month ago by Profile photo of DaOne DaOne.
    • This reply was modified 10 years, 1 month ago by Profile photo of Moderator Moderator.

    DaOne | Oras Finance - Your Local Mortgage Broker
    http://www.ihomeloans.net.au/
    Email Me

    Help you make your dreams come true: https://www.youtube.com/watch?v=sB3KpKX4UsI

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.