Forum Replies Created
Thanks Richard,
I have already utilized some of the equity in the property to invest in the sharemarket in March last year (not the best move in retrospect).
The property may have increased in value slightly since this point and there may be around 10-15k of equity still available using the 90% LVR that Adelaide Bank applies. However i am not sure how the banks forsee the sydney market outlook at the moment and therefore valuation may be totally incorrect.
Either way it seems that unlocking the equity should be the first avenue i pursue to get the deposit before i spend my savings. Is this correct?? i.e. i should get whatever equity out of the house no matter how small
Thanks again for your help
Thanks for the advice Richard,
Can you please explain “cross-collateralised” and what i need to do to avoid this?
At the moment i have all of my savings in the original offset account…is this the best place for them?
These are my only savings and was planning to use these for the deposit etc for the next IP. I don’t see any way to avoid using these funds for the deposit….any ideas?
I was under the impression that i needed at least a 5% deposit to obtain a loan with an offset account…is this still the case?
Thanks again
Thanks Richard,
That is a good idea.
I just spoke to my broker and apparently i need 20% equity in a property to get a 100% loan and that a 97% loan requires P&I to be paid back. The broker did suggest that there may be ways to minimise P&I repayments but i don't see how….i always thought IO was the ionly way to go when investing in property
I seem to remember that to get IO that you need a 5% deposit and yoru idea could be the best way to get it.
Thanks again
Hi Elka,
It is with Adelaide Bank and i settled the loan in July this year. Now that i know "alot" more about finance i was lucky with the loan i selected (IO with an offset). It has worked well for me so far
Thankyou for all your help everyone
Thanks Simon,
My current PPOR does have an offset facility and this is where is where i have been saving my deposit for whatever i decide to do. The loan is IO and is fixed for 3 years at a good rate. In looking at a new bigger place i calculated that the stamp duty would be around 25k and that i would also need approx 5% deposit (30k) to access an offset facility (this would also lead to approx 15k LMI being payable). Should i be able to get a top-up loan from the bank to cover the start-up costs on the new PPOR (i would need about 20k after my deposit is factored in) based in the equity in the current one and what would be the terms of this loan
i am just concerned that if i buy a decent property in the inner-wets suburbs as a PPOR, that the costs of living an servicing the property, the zero tax benefits and possible high exit cost when i decided to move may negate any capital growth and prevent me saving anything in the mean time.
i am wondering if i should just stay where i am, buy a new IP and hold for a few years and then sell one of them to cover the costs when i finally decide to move back to newcastle. Or i could buy a nice place in newcastle now and rent it until we are ready to move back. I now realise there are CGT issues and i am trying to pick the best stratergy to minimise this effect.
I am really confused and want to just make a decision soon and stick to it.
I really appreciate your help
