Hello,
I am considering buying investment property in the future. After making enquiries with my mortgage broker, he suggested that it would be easier and faster to use the equity in our own home and borrow against it to purchase the investment property because banks do not want to lend for remote properties in rural areas as they do not think they can recover their money if necessary.
I am interested to hear any thoughts or experiences on this theory.
Thanks in advance.
Kind regards…………Using equity will certainly speed things up. But it really is a personal decision.
BTW, you can get 95% loans in country areas for properties up to $150,000 with most banks.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
yeah, depending on how ‘rural’ it is, safer to say 20% deposit will apply – hey, and it saves you mortgage insurance – so if the equity is there, you’ve got a good broker
cheers
brahms
If you don’t ask, the answer is no!!
Originally posted by zuluwarriordog:Hello,
banks do not want to lend for remote properties in rural areas as they do not think they can recover their money if necessary.Hi Zulu,
You also need to be certain you’ll be able to recover your funds within a reasonable timeframe if the ‘manure hits the fan’
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Zulu,
Yeah give us the postcode – this will guide us backup brokers.. You should take 20% of the IP price out of the equity in the PPOR and finance the rest in the IP. That way you can access the additional equity in your PPOR at a later date.
I’ve done rural zoned property in non metropolitan areas for 80% no worries… it does come down to the postcode, the property type, property size and the zoning of the land.
Let us know will you… then we can tell you how good your broker is – hee hee[exhappy]
Liz Wilson
Mortgage Lender
God Love you Morgage Brokers !![happy3]
[blush2] Shucks we are loved![biggrin]
Liz Wilson
Mortgage Lender
Originally posted by The Mortgage Adviser:Zulu,
Terry,
I would love to hear which lenders do 95% on rural properties besides possibly St George.
Rob
The Mortgage Adviser
[email protected]Comments made are of a general nature and should not be construed as advice to any particular individual.
Rob
Any lender that uses the mortgage insurer PMI (ANZ, Bankwest etc) should be able to do up to 95% LVR on properties in many country areas (if zoned residential).
Please see PMI’s location wizard for more details:
http://www.pmigroup.com.au/LocationWizard.aspTerryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
HI Everyone,
Thanks so much for all of your comments. It’s been very interesting and helpful.
FYI the postcode is 4821 and the land size is 1738 sqm. It is zoned rural and the home is a solid timbre home with 2 bedrooms.
From Zulu.
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