When we brought our first ip we borrowed 100% against our own home.We are now looking to buy another ip are we best to borrow 100% against our own home or should we use the equity in our home as a deposit and only borrow 80% on our next property.
I generally prefer the second option.
Depends on the exact situation though.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I would encourage you to look at your current debt structure. If repayments are easily affordable, and you have no personal debt on your home, borrowing 100% may be better for you tax-wise. You should ask your accountant as well.
[
]Matt,
Both are 100% lends…
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
True – Sorry, Wouldn’t you prefer to have an unencumbered property if possible though?
Matt, ‘unencumbered’ to me just means equity that is going to waste!![
]Cheers
MelMel,
This is true – but no matter which property you use, the amount of equity available is still going to be the same.
Having an unencumbered property would open the door for a possible investment based ‘lodoc’ loan in the future for example. (yes?)
Matt
Matt, that is true – unless you are using all your available equity. But if I have an unencumbered property now, I would be pursuing that option – thus no unencumbered props for this little black duck.[
]Cheers
Mel
]
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