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Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of Jay74Jay74
    Member
    @jay74
    Join Date: 2003
    Post Count: 43
    September 17, 2003 - 11:03 pm

    Morning all,

    I (like many others it appears) have just finished the book and am ready to get started.

    Before i start though i’d like to get some advice on the best way to structure my finance.

    I have access to about $65-70,000 in equity in my PPOR but very little cash. So refinancing is my only option.

    The question i have is since this would be enough for 3 or 4 deposits, should i borrow the whole amount now and start looking? Or should i only borrow as much as i need for each deposit as i find each property?, (i’m assuming this method would cost me more in fees) or finally would it be best to buy one propery outright and then use the equity in that one to finance others as i find them?

    Any help on this subject would be much appreciated. Especially if someone could outline the pros and cons of each method.

    Thanks Jay.

    Profile photo of RolfLathamRolfLatham
    Member
    @rolflatham
    Join Date: 2002
    Post Count: 7
    September 17, 2003 - 11:11 pm

    Hiya

    Borrow the money on one hit using a LOC or a 100 % interest only offset acct. Depending on lender may go as high as 95 % Interest only.

    Ta

    rolf

    Profile photo of Jay74Jay74
    Member
    @jay74
    Join Date: 2003
    Post Count: 43
    September 18, 2003 - 3:28 am

    Thanks for your input Rolf,

    C’mon all you clever numbers crunchers, i know it’s not exactly a meaty question, but as i’m very new to investing and finance matters in general i could use any ideas that you guys might have.

    Jay

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 18, 2003 - 4:25 am

    you may not need to refinance, just ask for an increase from the same bank. And when you say you have that much equity, are you leaving a 10 to 20% buffer in there as well?

    I would get as much as you can now, using a LOC or separate split loan to keep it all separate for tax purposes.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jay74Jay74
    Member
    @jay74
    Join Date: 2003
    Post Count: 43
    September 18, 2003 - 4:36 am

    No that was not leaving anything, i calculated this figure by simply subtracting the 100K that i owe from the valuation i had recently of 170,000

    Thanks Terry, much appreciated!

    Jay

    Profile photo of MobileMortgage3MobileMortgage3
    Member
    @mobilemortgage3
    Join Date: 2003
    Post Count: 21
    September 18, 2003 - 8:41 am

    Hi Jay,
    I agree use LOC to fund deposits on multiple IPS,
    Keep in mind deposits of 20% or more will not attract Mortgage Insurance.
    Regards MM.

    Mobile Mortgage
    [email protected]
    Phone 0402483216

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