All this is pretty new so forgive me if i repeatedly ask dumb questions.
At the moment i have a mortgage for $225,000 where we have been keeping the payments low and wouldnt have payed off much (i have not checked). Based on sale prices on similar or lesser properties in the immediate area I would estimate that we could sell it for $255-$260,000 – but have not had any formal valuation.
I dont really want to sell as i like where i live but is it possible or would lenders revalue the property and lend me the difference to invest? If its of any use I am with Citibank at the moment.
any other suggetions are welcome, just looking for a way to get to the first investment/property.
You may not have much equity to make it worthwhile as you can generally only borrow up to 90% of the value of the propeprty. And if you go over 80%, there would be LMI involved.
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
Doh! Maybe ill come back in a few years.
Dont necessarily dispair.
As long as you have good income a 90% loan would appear to be satisfactory dependant on what you are looking to purchase.
A couple of lenders will go upto 100% on an IP on a standalone basis and without additional security.
All you would need to find is the acquisition costs.
Richard Taylor | Australia's leading private lender
I would assume you have redraw on your loan account? If it is no charge to use, or if you don't think you will need to use unless emergency, why not stick everlything extra you can into your homeloan , and look at it again in 6 mths time? You may get a pleasant surprise, especially if property increases 6% PA or so in your area.Cheers.
Hi there,
There are several products on the market that will allow you to refinance your property up to 95%, in order that you could use that money for fees etc on your first IP.
If your house was valued at 255K, you may have the option of refi-ing up to 95% and using that 17K towards purchase of your IP.
Granted, as the other guys have eluded to, it's not a massive amount, but if you were looking at getting into the property market, you could always purchase a unit, or a lower priced home in a less exclusive area for your first property. Have a look at the prices of units in areas that you are interested in, see what their rental yields are and what sort of CG they have been achieving.
Keep in mind that you would need to be able to then pay the mortgage on your initial property at the higher amount, as well as any shortfall on the new property. Some people have less aggressive investment strategies to others and would not feel comfortable not having a cash buffer in place, some are more aggressive. It really comes down to your comfort level!
If this is no problem to you, then you may be able to start investing now!
Lia
Hi there,
i have to agree with Lia here because if you are able to borrow 90%+ to purchase an investment property if you do your homework you can find a positively geared property in an area that is likely to boom and be stable in the short and long term.
As this is you first investment i suggest that you don't sell your property where you live because it doesn't make so to do so.
The appreciation is so small that refinancing would be your best option.
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