HI,
How are we all.
My partner and i have an investment property, we owe $270,000 on it, and its market value would be $310,000. We rent it for 350p/week so the return is pretty good that we will keep it if possible.
But we would really love to buy our selves a new home.
My take home income is 1300 p/week and my partners is 620 p/week. We have a $5000 credit card limit and a $18,000 personal loan.
We dont have a deposit as we put a 10% deposit into our investment home.
IS there any ways of being able to borrow against the investment property. The good and the bad ways just so i can get a better understanding.Cheers
Hi Jaster,
Your current LVR against the IP is 87%, so going to 90% would allow you to release only $9,000 for the next property (plus LMI costs). If you can get a higher valuation then this will allow further equity. Perhaps going for a high val on the refi and seeing how close the valuers go to it might be the first step.
The advantage is that you are still applicable for the First Home Owners Grant (and boost if you build), as long as the IP is your only property owned and never lived in, so the amount of capital to contribute does come down.
There are also lenders out there who would provide unsecured credit cards to contribute to the deposit, but you need to be careful here as with your current personal loan, you don't want to get into debt that is at too high a rate.
Please note that this does not constitute financial advice.
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