- SC2007Member@sc2007Join Date: 2007Post Count: 3
PPR valuation should exceed $600k Loan $360k
IP valuation $400k loan( interest only) $300k
Both the loans are stand alone with different banks.
Thinking of another IP for under $400k. Need a good broker for advise.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Without knowing too much of your details – and based on the limited info available I'd probably look to tap into the equity against the PPOR – set it up as a second split to cover the deposit/costs on the next IP. I'd then set up a separate, stand alone loan to cover the remaining balance of the IP.
All in all, your equity position is good – it's just a matter of assessing your borrowing capacity amongst a few other things to work out the best option.
Jamieoc1Participant@oc1Join Date: 2012Post Count: 148
I'd call Jamie here for more info, especially if you're uncomfortable divulging more info here.
OscarDon NicolussiParticipant@donJoin Date: 2005Post Count: 1,086
Hi _ do you have any further information. What are your goals? Upfront valuations will determine your true equity position and this will be a good starting point. However, we will need to know the income side of the equation to have a look your ability to leverage that equity into other investmentsPLCParticipant@plcJoin Date: 2012Post Count: 400
It seems you have a reasonable equity position and setting up your IP loan as interest only is the correct thing to do so it's been a good start by yourself.
As others have mentioned, more information would be needed before making recommendations.
TomRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Welcome to the forum SC and i hope you enjoy your time with us.
I always favour reducing the amount of debt secured against your PPOR for the IP deposit so would probably suggest it is a matter of working backwards.
What we would look to do is establish what you would need to cover say a 10% deposit on a 400K purchase and then add in the acquisition costs etc.
Then we look at restructuring your current PPOR loan to raise the shortfall.
Assuming you have sufficient income to support the total borrowings i cannot see any initial problems but as mentioned probably a matter of organising an upfront valuation on your PPOR to work out what equity you have to play with.
All in all structured correctly you should be able to acquire the new property and put you in a position to start reducing the non deductible debt on your PPOR and set yourself up for further investment acqusitions.
Yours in FinanceTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213DaOneParticipant@daoneJoin Date: 2008Post Count: 38