Hey everyone,
Im quite new to this website and investing, but im researching quite hard.
I currently have a PPOR which is worth around $390K and have a loan for $315K, and we would like to buy an IP in the near future.
My question to everyone is, do most people use equity to finance IPs, or do they save cash deposits? Is there a better/best way of financing our first IP, and when is the best time to financially buy an IP, I mean should we be trying to knock our home loan right down before thinking IP?
Our combined income is around $150K.
Any help would be really appreciated, thanks.
Hi Coxy
The vast majority of my clients use equity to fund their purchases.
Those starting out generally use the equity they have in their PPOR.
It's important to get the structure correct from the start – to avoid crossing your PPOR with your IPs, etc.
It looks like you've got a little bit of equity up your sleeve that could be used for your first IP – but it's hard to comment without further data.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Coxy
As Jamie has mentioned subject valuation you have a wee bit of equity up your sleeve so ideally you would tap into this to access the deposit.
In saying this in order to avoid cross collateralising the 2 loans you need to structure them correctly.
Subject to with whom the current PPOR loan is with will determine whether your Broker can organise an upfront valuation for you to ascertain the exact amount of equity.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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