Hi fellow investors
We are looking to purchase our second investment property, where is a good place to look for an expert to tell us how and if we can or how to structure finance,,,,, please help ….
JasHi Jason,
Your mortgage broker should be able to advise you. If you do not have one we are mortgage brokers that work out of the same offices as accountants, who work closely with us and advise clients on structures etc
Contact ProMatrix Finance
Sally 0400570051Generally, set up a LOC on the first and then use a 80% IO loan on the second.
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
We have minimal equity in first ip and approximately $300000 in ppor would second ip be achievable ???
In addition to equity you will also need income to demonstate serviceability. Assuming you have that you could set up a LOC on your PPOR and go from there.
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
Yes both my partner and I work her 50000 me 68000pa
You would still need to check serviceability as it depends on what other debts you have too. I suggest you see a broker.
For the LOC work it out like this. Value x 80% minus existing loans = max LOC. I would go for the max now. Then borrow 80% of the value of the ivnestment property separately. interest only. Use the LOC for deposits and only for investment expenses – don't pay anything into this except maybe the interest.
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
Anyone you care to recomend???
As a broker? why not try one from this forum? I am not longer brokering.
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
Jason
Serviceability is just one factor to take into consideration especially under the National Consumer Credit Protection laws.
As long as the initial IP is not Cross Collateralised you could keep this as a standalone loan and as Terry mentioned access the equity in the current PPOR to cover the Deposit and costs.
Richard Taylor | Australia's leading private lender
Great information on this thread . Very useful recommendations . Thanks guys !
Hey guys
Need your thoughts on another option:
Ip is valued at $550k and owe $530k
Ppor is valued at $650k and owe $400
My question is what are your thoughts on
borrowing up to say $700k io and turning
ppor into ip earning $650p/w rentOops borrowing $700k io for another home to live in but keeping original ppor as ppor
Property:
550
650
700
Total 1.9MLending
530
400
700
Total 1.63MLVR 85.7% (1.63/1.90)
Accross the board gearing is getting high. I would assume your current IP is crossed with your current PPOR as the loan / property value is too high to be standalone. This indicates you can’t simply get a depoist against your PPOR as the equity already supports IP one.
Don’t think the problem is cross collateralising. The other alterntive would be to have a smaller IP loan and extra loan or line of credit on the PPOR, so equity is already tied up either way.
Assuming servicing stacks up you could do it but would pay LMI (lenders mort insurance).
You don’t need to cross collateralise any further. Maybe 90% on the new property and the balance on the other two (split those securities later when you have more equity).
That’s equity coverred. I don’t know if you can service on your income though…
Banker
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