Ok, we are total ameteurs when it comes to loans for IPs. Basically we are a little confused with the loans that you would get for your IPs.
Eg, (theoretically) we have a PPOR worth $150K. We owe $120K. We could redraw that $30K we have paid off to use as a deposit for two different properties. The qn is, for the new properties, would they start a new loan of would it go on top of the other loan?
I would have thought that you start a new loan but my hubby reckons it would just go on top of the other one? What is the norm? Please help!!!
CHeers
Steph.Here for a good time not a long time, just do it!.
Lots of ways to do it Steph but it is probably good to say that the deposits will create new loans which stand alone and are not cross-collateralised.
As to the PPOR part If your house is worth $150K and you owe $120K then it is at 80% LVR and there is nothing to redaw unless you want to go to a higher LVR. If your house was worth $200K and theloan was $130K then you could have $30K available to redraw (with the right facility).
Hope this helps.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Oh, ok, so does that mean it is best to wait until we have paid off more on the original loan so as to keep it at 80% LVR???
The idea on our haouse it to also renovate it so the market value would be worth more. Could we then redraw the difference? Ie, bought at $150K now worth $180K after reno?? I dunno, I think I am just confusing myself now…
Cheers for your prompt reply Andrew.
Here for a good time not a long time, just do it!.
I think you have it. You would need the house revlued but then you could access the money. It is good to talk to a good Broker about your options. Try calling someone like Stuart at prosolution and seeing what he reccomends. Run the numbers past him and see what happens. He knows his stuff. There are other brokers on the forum as well.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Cheers but this is all theory at the moment as we are still here in London. I am sure all the figures will be different closer to xmas as we know for sure what deposit we will have, what expenses we have, etc etc…
How come you get the graveyard shift??? A piece of trivia for you, it is called the graveyard shift coz in the 19th century the med students used to rob the graves so they would have cadavas to work and learn off. They would have someone work the “graveyard shift” so as to stop ppl being stolen!! Pretty sick eh??
Steph. [}
]Here for a good time not a long time, just do it!.
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