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yes we are the directors of the company as the property is owned by the company with a family trust also. Also would it be true that we would have to pay market rent??
Hello JJhaus,
What is the advantage of loaning 100% + cost’s? wont this cost you more over the longterm because you have to pay mortgage insurance?Ok,
Maybe i have not quite explained myself properly.
What i am trying to get at is we currently have a mortgage of 190K say, the property is valued at 340K with our service abilty we can utilze 90k on an interest only loan. The loan allows us to use the 90k at any time without paying interest until we do purchase a property. Now we will have 2 loans were interest is payed on both. Once we purchase the investment property we will need to borrow the other 80% which will give us a third loan. As we will now be charged interst on the 2nd loan for the deposit from what i can see the proprty now has to cover the interest on both the 2nd and 3rd loans? I guess what i am trying to find out is how investors account for this as if i had saved cash for the deposit i would not have the 2nd interest charge to consider?Darren Hall
