I am new on this website and I have a question like to ask
i bought my first owner-occupied property in Melbourne about 1 year, 80%LVR, P&I fix rate. it increased value about 100k, should i start to buy first investment property? what is the best loan structure? and does anyone have good mortgage broker recommend in melbourne? thank you very much.
Regards,
kevinHi Kevin
Welcome to the forum and hope you enjoy your time with us.
As the existing loan is a fixed rate loan and on the assumption the expiry date is well off you would probably look to take out the equity loan with your existing lender.
With the equity you would use this to cover the deposit and your acquisition cost on your new investment property.
Certainly try to avoid cross collateralising the 2 securities but structured correctly this should not be a problem.
Unless you need to meet your mortgage broker face to face most of us work thru email and phone communication. I know we have hundreds of clients in VIC that we have never met.
Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
thank you for your response.
what do you think of the strategy of only pay for interest for owner-occupied home, and put the money in the offset account? is it better for future investment property? how about line of credit loan? how it works? very confused when I watched people talking about? will LOC help pay off mortgage faster really true story
Hi Kevin
Hate to say with a fixed rate loan most lenders won’t allow an offset account to be linked to it so probably not an option going forward.
Not a fan on a LOC for a PPOR loan split as too easy to spend and a strong discipline is required.
If you have equity then you could always look at mixing the investment between an investment property and a diversified investment using the higher rate of return to pay down your PPOR loan.
If you have a non working spouse or partner on a lower Tax bracket then this investment could be in their name as it will free up increased monthly income to divert towards the home loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
To be honest, I have already been regret to change my interest only 100% offset to 2 year fix as I thought 3.88% is attractive, but for a long run, it won’t be helpful, i definitely change to variable rate when is finished.
Not a lot you can do now and certainly 3.88% is not a bad rate.
Just make sure structure the loan from now on correctly and you will be fine.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
as a self-employed with my wife as partnership, how to maximum my borrow capacity as banks lending restriction trends to be hard
Hard to comment Kevin without seeing your Partnership / Individual Tax Returns.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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