Hello all.
I recently purchased a property in Homebush West. I got the first home grant and I’m going to live in the property for the first 6 months (till August).
My question is when can I purchase again once I receive rent and turn the popery into an IP? Will I get another loan closer to the end of 2009? I’ve used online calculators and they all say that I should be able to borrow again. However I’m worried about equity, and banks not allowing me to lend. Is there some sort of rule of thumb?
I’m trying not to think too much into the future; however I’m trying to map out my investments for the next couple of years.
Your help, from experience would be appreciated.
Hi Rambo1,
I myself am in the same position.
My understanding from what I have picked up from my mortgage broker is that banks will base this on their evaluations and LMI values.
i.e.
Property 1:
Value: 400k
Loan: 300k
LMI: 75Available borrowing:
LMI: 90
Loan: 360k
Extra: 60kProposed Property 2:
Purchase: 300k
Costs: 20k
Loan: 260
LMI: 87– Take into consideration costs of any renovations you require and startup costs.
– Remember your ability to service loans will be checked, (rental income, personal income).Is it not as straight forward as we all wish it could be.
Hope I'm correct with all of the above. Can anyone with more experience confirm please.
Cheers,
MiikeThanks for your comments Mike.
Anyone else have experience with the same?
Hi both
There is no time frame to stop you purchasing again immediately subject to the usual income, equity and deposit requirments.
Not sure how you structured the first loan but we normally have our clients purchase using an interest only with 100% offset account and then get them to put their First Home Owners Grant and deposit into the offset so they can immediaely purchase again.
Richard Taylor | Australia's leading private lender
Miike
LMI = Lenders Mortgage Insurance
LVR = Loan to Value RatioI think you mean LVR above.
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
Haha, good pickup Terryw.
Maybe I should proof read before I post…was in a rush when I typed it up, anyway, LVR was what I meant!
Cheers,
MiikeIf you have the 20% deposit you can pretty much lend as much as you want.
Qlds007 wrote:Hi bothThere is no time frame to stop you purchasing again immediately subject to the usual income, equity and deposit requirments.
Not sure how you structured the first loan but we normally have our clients purchase using an interest only with 100% offset account and then get them to put their First Home Owners Grant and deposit into the offset so they can immediaely purchase again.
Richard, at what LVR are you talking? I get what your saying but depending on the purchase price wouldn't most of the FHOG be soaked up in associated costs / deposit?
Depends on which State you are in.
In Qld there is no Stamp Duty for FHB upto $500K so really the entry amounts are not much.
You could then use some of your savings to purchase a new IP where you will need funds to cover the acquisition costs etc.
Richard Taylor | Australia's leading private lender
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