Hi,
I am seeking a good accountant in Melbourne CBD that specialises in Property investment and a good strategist.
My husband and I own 2 properties 1 investment and our current PPR which we have been renovating. We are looking to pay down personal debt and would like to purchase a second investment property. Both houses are under my name and I am on a salary of around $140 and my husband $70k. We are a little short after paying down debt of making a next investment unless we look to refinance our PPR at an LVR of 90% or look to refinance the investment at an LVR of 95%.
Really look for recommendations for strategy and tax experts that may be able to assist us with our propery journey.
Thanks for reading.
KassieHey Kassie
Welcome aboard.
I agree that a good accountant is a must – but in this instance they’re not going to be able to advise on how to structure your next purchase, that’s the domain of the finance person (broker or banker).
Gone are the days of 95% refinances :-( They were extremely tough to get approved back in the day and now with recent tightening of IP lending, I’d assume it’s practically impossible.
You’re on good incomes- so if you’re looking to purchase again, it looks like it will have to be from cash savings. With those savings – you could look to inject that money into the principal of the PPOR loan and reborrow as an equity release (a second loan against the PPOR). That will make the debt deductible.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Kassie
Welcome to the forum and I hope you enjoy your time with us.
Unless your Accountant is licensed to provide Credit advice he cannot talk to you about lending options so a property focused broker is the way to go.
You mention you are looking at paying down some personal debt so not sure if you have factored this in to get to a 90% lvr but have to say equity release over 80% these days is almost impossible.
That and the fact you are unlikely to get more than 90% lvr on an new investment property will make moving forward difficult.
We often see clients hitting the equity wall before they should do as their loans have not been set up correctly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thank you Richard and Jamie for your replies. I have seen the recent RBA crackdown on investment lending which has put a bit of a spanner in the works with drawing down equity from our properties.
Both of my loans are Stand alone loans. I have factored the personal debt into 90% LVR with the PPR, but I am hearing that obtains equity release of more than 80% is now going to be a challenge. Both of these loans were originally set up as interest only with a 95% LVR and although we could refinance our PPR with an LVR of 80% and pay down personal debt it would then leave us short for another deposit. Are most banks now requiring a minimum 10% deposit for an investment property? That also increases the deposit needed to look to repurchase. Sounds like property number 3 might be some time away as we saVe for the deposit.
Thanks again for your comments.
KassieDepends on the lender but getting an investment loan > 90% lvr these days is getting harder as well as more expensive.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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