澳洲Australia property Equity and LMI - A question | Sydney


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


Hi guys...

can someone help me out as a new investor.. I understand the concept of LMI and needing to borrow less than 80% or avoid paying for this... But I have heard of people using equity in 1 property to avoid paying LMI on a new investment..

How does this actually work?

I have recently bought a property and would like to soon buy another one but wish to avoide paying extra if i only put down 10% in cash

thanks heaps

Simon  

评论
Assuming you bought a property for $500k two years ago for which you paid a 20% deposit. If you have been repaying the loan on interest only and it is now worth $600k, you have $200k in equity ($100k from your initial 20% deposit plus $100k of increase in property price).

You can refinance the loan on the existing property on the basis of a 20% deposit which is $120k. Hence, you have $80k left in equity (being $200k - $120k). If you now buy a property for $400k, then you already have your 20% deposit.  

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