hello [cap]
Me and my partner bought a property 18 months ago, it is valued at $700k. we have a $400k mortgage and we have $100k savings.
my partner has an income of $110k , and I work as tutor with cash income of $800 a week.
Can any one with investment expertise give me some advise on how i should buy a second peroperty ? thanks
Hi one-step
I think this is one you should take straight of the forum as it onvolves a lot of personal details.
Feel free to email me and i will be happy to make some suggestions
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
dosn’t seem from those numbers that you will have any trouble financing a second one!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582I hope the 700K property was a commercial with good returns!!!!!!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582Hi One Step & welcome to the forum,
There are a couple of options available to you regarding the next purchase,
The 1st option would involve using your current savings as a deposit on the next purchase and borrowing the remaining 80%The 2nd option would involve setting up a split loan on your PPR and drawing the 20% deposit and closing costs from available equity and borrowing 80% against the new purchase,
Using this method you are borrowing 100% of the purchase price, avoiding Xcoll and maximizing deductible debt,
You should also consider parking your $100K in savings in an offset account attached to your PPR debt, this will minimize the nondeductible portion of the loan, I hope this helps, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi one-step
Let me tell you that you and your partner represent the top 5% of the population every lender wants as customers, so first lets establish that your in driving seat and in full control.
Second
You need to ask as many people as possible because there are some very big tax implications here. The first of which is the $100,000 that you put away for a rainy day that earns $5,000 a year that you pay $2,500 in tax for should be in a mortgage with a re-draw facility saving you 7% tax free.
But there are bigger issues. One is focusing on minimising the non tax deductable debt (your home loan) and moving it to a deductable debt (your investment loan), you should be able to juggle your current situation so that around 110% of the investment property is borrowed and the cash is put into the home loan.
Most lenders should know this stuff and should structure the loans accordingly, but unfortunatly cannot not offer tax advice, I usually put the structure together and send it to the borrower’s accountant with a biz card asking him to look it over and call to discuss. Amazingly enough many accountants don’t know this stuff. Shop around and ask many, many questions. Once you have set this up it is very hard and very costly to decide you made a msitake and unravel it, but if you set it up correctly, it will be easy to buy the next and the next investment properties, and you save thousands every year.
Yes Home Loans Pty Ltd
Is your mortgage advisor accredited with the “Non Bank Lender of the Year?”
(Money Magazine 2005).
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