Hi All,
My name is Rissa, I have a property valued at $580,000. I am interested in Property investing. Is it a good idea to borrow money against my house to buy an investment property as I don’t have a mortgage? Could someone explain to me on how and where to start.
Thank you.
Hi Rissa,
This is how we started. We had no mortgage on our PPOR and wanted to get into property investing. As we could secure the purchase of an investment property against our PPOR, we could borrow 105% and not have to pay mortgage insurance.
I would suggest setting up a Line of Credit against your PPOR as this will give you a working account to pay stamp duties and deposits out of.
Good luck.
Hi Birdman,
Thank you for the information. Much appreciated.
Rissa
I fully agree with Birdman on this one. Setting up an LOC also gives you some bargaining power too. If you can go in and offer a cash transaction and buy the property out of your LOC then refinance after. This enables you to move quickly and offer agressively.
Hope this helps.Enjoy
AD [:0)]“Don’t dwell on reality; it will only keep you from greatness.”
-Rev. Randall R. McBride, Jr.Hi Lioness,
Another advantage with a LOC, is the fact you are able to split your account in to sub-accounts which will help keep in clean when tax time comes around. This way you can montor cash investment and interest paid on each loan.
Some of the banks will allow you to have up to ten sub accounts for no extra fees ( excluding your yearly account fees)
Also, Most banks will not entertain second mortgages either so LOC makes a lot of sense.
CheersEP
I fully agree with Birdman on this one. Setting up an LOC also gives you some bargaining power too. If you can go in and offer a cash transaction and buy the property out of your LOC then refinance after. This enables you to move quickly and offer agressively.
Hope this helps.Enjoy
AD [:0)]“Don’t dwell on reality; it will only keep you from greatness.”
-Rev. Randall R. McBride, Jr.Dear AD,
Thank you for your suggestions. Much appreciated.
Regards,
Rissa
Hi Lioness,Another advantage with a LOC, is the fact you are able to split your account in to sub-accounts which will help keep in clean when tax time comes around. This way you can montor cash investment and interest paid on each loan.
Some of the banks will allow you to have up to ten sub accounts for no extra fees ( excluding your yearly account fees)
Also, Most banks will not entertain second mortgages either so LOC makes a lot of sense.
CheersEP
Hi Elvis Priestly,
Thank you so much for your advice and suggestion. Much appreciated.
Regards,
RissaHi Rissa, starting out can be confusing/daunting. The advice above is very sound however, I suggest much more research prior to taking the plunge. Would be happy to show you some options.Feel free to contact me: [email protected][
]Hey Pynecone,
why don’t you throw some of the options up here on the site so we could all look at what you suggest. Have you got any real deals that you have done that could encourage us all ?
Look forward to your reply …Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David Brink
Hey Pynecone,
why don’t you throw some of the options up here on the site so we could all look at what you suggest. Have you got any real deals that you have done that could encourage us all ?
Look forward to your reply …Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David BrinkHello Ad, thanks for the invitation – I too am like Rissa and finding my way through the first steps. I have purchased some information that (for copyright reasons) am unable to post. I am obviously in a position to refer however. I trust this is neither unethical nor offensive. Must say I enjoy the dialogue and will continue to learn through this forum. Thanks again. Geoff.
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[/quote]No problems Pynecone.
You’ll have to let us know if the info works. Always looking for new information to expand my knowledge. Hope it goes well.Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David BrinkNo problems Pynecone.
You’ll have to let us know if the info works. Always looking for new information to expand my knowledge. Hope it goes well.Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David Brink
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