Ok where to start, my husband and i are keen to do this postive cash flow investment situation.
Currently we are gathering information and looking around at what we should buy. Im coming up against a couple of hurdles.
We currently rent out our house in Adelaide, and moved to the Gold Coast where we purchased a property to live in having 2 dogs does not allow you to rent anywhere. In doing so we used a 90% lend on both properties to purchase our house here.
To go ahead with our next adventure i want to keep our lending at 80% if we have to use our existing properties for finance. What i would prefer to do is find a mortgage broker that deals in the 100% lend situation and start from there we have the money to cover legals etc just not the deposit at this stage. Im hoping to keep our investments seperate to our own home.
Does anyone know of many mortgage brokers that will do 100% finance?
We are currently looking around future properties in Adelaide, and also checking out different parts of Queensland. If anyone could give us a few pointers it would be greatly appreciated.
Hi Kerreni,
I noticed that without mentioning their names there are quite a few good brokers in the forum here.
Just check out their signatures.
Why going out shopping when you can find one in your own big family here?[
]My guess here kereni, is that you’ll need *some* deposit to buy an IP. Others can correct me here, but traditional lenders will not lend on no deposit. You could get your IP revalued, and it might have gone up in value so you can use that equity as deposit. Given tough, that you’re so highly geared at 90% of two properties, I am wondering if you’re in a financial position to buy another IP.
Factor in possible interest rate increases in future decisions. A positively geared IP won’t help you much if you can’t pay it off and, in the worst scenario, have negative equity in the case of a value reduction in property. You would be paying mostgage lender’s insurance if geared at 90% now. Another dose of LMI and negative equity is possible.
kay henry
Hi Kerreni,
From the finance side most brokers will be able to help you with a 100% lend as there are a few products available now with lenders like St George, although their criteria is fairly strict and it’s not the cheapest loan around – ie other options may work out to be more cost effective for you. [
]I’d be happy to help and I’m based in Brisbane.
As for the ‘where to look’ side – keep researching and on the gold coast be wary of the marketing sharks …! [
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Mel
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