All Topics / Help Needed! / Equity for 3rd IP

Viewing 5 posts - 1 through 5 (of 5 total)
  • mcho7688
    Participant
    @mcho7688
    Join Date: 2011
    Post Count: 24
    April 14, 2012 - 11:31 am

    Hi there,

    I am new to property investing so I hereby ask for advice about using equity to purchase my 3rd property, which I am looking into at the moment. Currently, I have 2 investment properties. IP A was converted from PPOR nine months ago, having about $277k left in loan. Recently, i purchased IP B,  tapping the equity off IP A and valuation of it came up to $370k. The mortgage loan for IP B is $325k which is not changing much up to now. Looking at this situation, I was wondering how long it will take me to gain sufficient equity to purchase 3rd IP without forking any payment upfront. Target loan amount would be $330k. I have to add that IP A is under my personnal name, IP B is under family trust, with me and my partner name in the morgage. Both loans are in separate accounts within the same bank.

    Thanks.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 14, 2012 - 1:18 pm

    Have you cross collateralised the loans?

    Best way would be to set up a new loan on each property and use that as deposit. What LVR are they at atm?

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    April 14, 2012 - 11:44 pm

    For a $330k purchase, the absolute minimum you’ll need is a 5% deposit plus costs – so factor in around 10% of the purchase price. You’ll also need to be able to service the debt.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    mcho7688
    Participant
    @mcho7688
    Join Date: 2011
    Post Count: 24
    April 15, 2012 - 3:52 am
    Terryw wrote:
    Have you cross collateralised the loans?

    Best way would be to set up a new loan on each property and use that as deposit. What LVR are they at atm?

    I am not sure if cross-collateralisation occured. Seems like the chance is there since I made a mistake of going to the same bank to get equity off the IP A. But at the same time, I have a home loan account for IP A and a separate account for IP B. Would that still considered a cross-collateralisation? How do i find out? From recent loan document for IP B or…?

    LVR- it is $596k/$685k, about 87% LVR.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    April 15, 2012 - 6:26 am

    The loan docs will tell you which securities are being used for the loan.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.