Buy Reno Rent

Hi @brads,

I am a mortgage broker and look after a lot of the finance queries that come through property investing.

Given you have such a large amount of equity, easiest way would be to setup an Line of credit type facility against your home, which would allow you to draw down the funds as you please.

Servicing would obviously be the deciding factor in weather this would be an option, because lenders do not allow proposed rental income to be factored in when there is no security being purchased as part of the loan.

This would allow you to access current market investment rates at the more competitive end of things because your loan would be well under 80% also, and it would be treated as a normal investment loan.

The good thing with this type of setup is you can draw down for the purchase, the renovations and paying yourself a wage, then once the property is put on the market and sells, you can simply pay the loan back to zero, take your profit and then move onto the next project without having to close the facility.

Most banks will do this type of lending, but everything comes down to servicing.

I hope this helps and if you would like to have a look at what your servicing looks like, please give me a call on 0477 212 840 or email at [email protected] and we can see if this is an option.

Thanks and speak with you shortly.

Chris Berry