Hi Everyone, I'm new to this forum. I bought my first property in late 2010. The property was a dive of a place but spent a few dollars renovating and made some $$$ after I had it revalued 3 months ago by Property Valuer through one of the major four banks. Anyway I want to upgrade to my second property. I'm interested in buying another run down pad that needs cosmetic makeover. I will live in the second property I buy and rent out the first one and keep as investment.
I suppose the question is how do I get into the 2nd property and how much $$$ do I need upfront? To cover deposit, fees etc… I hear stories of people borrowing money against their properties. I suppose I just want the easiest way to buy 2nd property. Any advice?
I'm based in South West, Western Australia
Hi Dublingirl
Welcome to the forum and i hope you enjoy your time with us.
if you intend to live in the second property as your principal place of residence then you could probably get away with 5% deposit plus something to cover your acquisition costs.
One lender we use would allow a 95% lvr + LMI and then provide an additional amount to cover your renovation costs.
If your existing property has increased in value you should be able to access enough to equity to cover your deposit.
Your Banker or Broker should be able to instruct a valuation for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i am not sure dublingirl but would be interested as we are looking at buying our second property also.
Hi Richard
Can you help me with the finance for IP number 2 ?
Hi Dave
Yes that is what we do for forum clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Try ordering a few different types of valuation across a few lenders. Most likely there will be a bit of difference in the valuation amount quoted by each valuer.
You may find that another bank will give you more equity than your current bank.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
dublingirl wrote:I suppose the question is how do I get into the 2nd property and how much $$$ do I need upfront? To cover deposit, fees etc… I hear stories of people borrowing money against their properties. I suppose I just want the easiest way to buy 2nd property. Any advice?
Easy peasy.
Have the first property valued – and if there's equity available, tap into it.
That equity will then be used to cover the deposit and purchase costs on your next property.
You then take out a third loan to cover the remaining balance on the next property.
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]
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