Will the banks or other lending institutions ever consider providing you with 90%-100% financing for positively geared properties, whereby you can present a case to them and say that your rental income can cover the interest payments? Assuming that you have no income from a job or business. Anyone’s advice on this would be greatly appreciated.
hi russ…thanks for the tip. im not sure what OPM means, can you please clarify?? buying 2 smaller IP’s are you suggesting that they should be positive cashflow properties? im not sure if the combined rent would equal the amount i could receive for the one larger IP property. perhaps if you look for properties with higher potential capital gains?
desk top
Desk Top, when Simon was talking about the 65%, he was suggesting that the bank would take both properties as security – your current $240K one, PLUS your new $240K one, and will happily lend you up to 65% of the total value of $480K. This would cover purchase price plus costs, and perhaps give some ‘sleep at night’ money.
OPM is simply Other People’s Money. Banks, friends, credit unions, solicitors funds etc. Not yours.
Cheers
Mel
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