Hi
I'm looking for a broker or advice from people who know a lot about property investing and how to set up my finance. I currently have 1 investment property (just converted from an owner occ). It is IO, i'm looking to purchase a 2nd soon. Should I refinance my current loan to 95% with a LOC and then finance my 2nd property as a stand alone also with a LOC???I'm in Sydney if anyone wants to give suggestions.
CheersHi Cabo
It is funny it is the most popular question we get asked at the moment "how to structure my finance" ?
In essence the ideal way is as you have described however obtaining a line of credit to 95% is not as easy as it sounds in the current climate.
If you wish to drop me a quick email with some actual figures I would be happy to give you some constructive advice on moving forward.
Richard Taylor | Australia's leading private lender
Just curious… why you want to finance to LOC 95% and then finance the 2nd property?
Gee…how much equity do you have in the next 6 month in the bear property market especially in sydney?Cabo,
If you are considering increasing your current loan to 95% … I have a couple of questions:
1/ Is this loan over your primary place of residence at a managable level?
2/ Do you have sufficient equity in the first investment property to finance the second?The first thing is to consider is the state of the economy and the state of your finances … ie cashflow. Are you in a position to purchase and maintain the repayments of a second
investment property if finances get strained?It can be very risky in the current economy borrowing above or even at 90% if the market drops and you need to refinance … make sure you do your research on the market prices, suburbs and regions of growth …. try to buy in an area that is less prone to prices reducing…. preferably a stable economy, good infrastructure and positive migration.
Maxxi
I turned my owner occ into an IP recently, so i am renting now and will continue to rent in the future. i realize i may not be in the best position at the moment to purchase but i want to in the next 6 months. i realize all about the economy and market etc.. but also believe it's a good time to buy in sydney. i'm not one to sit around and wait…
i have llimited equity in my current IP but have some money tied up in the sharemarket i can utilize at some stage…
taking all the variables aside, let's say i had plenty of equity in my existing property and servicing wasn't an issue. would i finance it the way i originally stated? with 2 stand alone properties and 2 LOC's?
many thanks
CaboHi Cabo
Short answer is Yes you would. Although as i mentioned obtaining a LOC to 95% maybe harder that it looks these days.
Richard Taylor | Australia's leading private lender
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