Forums / Property Investing / General Property / Invested now, when can I borrow again?

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of RamRam
    Participant
    @therealram
    Join Date: 2009
    Post Count: 15

    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.

    Profile photo of miikemiike
    Participant
    @miike
    Join Date: 2008
    Post Count: 111

    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: 75

    Available borrowing:
    LMI: 90
    Loan: 360k
    Extra: 60k

    Proposed 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,
    Miike 

    Profile photo of RamRam
    Participant
    @therealram
    Join Date: 2009
    Post Count: 15

    Thanks for your comments Mike.

    Anyone else have experience with the same?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Miike

    LMI = Lenders Mortgage Insurance
    LVR = Loan to Value Ratio

    I think you mean LVR above.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of miikemiike
    Participant
    @miike
    Join Date: 2008
    Post Count: 111

    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,
    Miike

    Profile photo of daciumdacium
    Member
    @dacium
    Join Date: 2007
    Post Count: 56

    If you have the 20% deposit you can pretty much lend as much as you want.

    Profile photo of perpetratorperpetrator
    Member
    @perpetrator
    Join Date: 2007
    Post Count: 48
    Qlds007 wrote:
    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, 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?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic.