澳洲Australia property Some advice or your suggestions please |


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 Everyone,

I bought a unit 2yrs ago and with funds owing on mortgage($130k)i have around $30k equity to use.Now to use that equity on a second property is that taken out as a separate loan or included in the original loan and or do i have a choice?

The second property may become my ppor and my current ppor become an ip.Is there any implications here that i should know about?

Also regards to taking out a second home loan,is it advisable to stick with the same bank or should i go with another bank rather than having the eggs all in one basket should something happen?

I'm looking for a property for $270k and to use the $30k equity for part deposit of 7.5%(around $20k) and $18.5k costs.I have $15k in savings atm,so part of that will make up the shortfall and i'll end up with a $250k loan.I've calculated that i can manage this loan and the other on worst case scenarios.

On the flipside,would i be better off selling my unit to which i could walk away roughly with $60k and put it towards my ppor and buy an ip later on.

Any advice,tips and or added input would be much appreciated,

Cheers Spades  

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Hi Spades

How much is your current place worth and what size was the loan when u took it out please ?

ta
rolf  

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Re:

Hi Rolf,
Prop is valued @ $200k and the loan i took out was $136k.
Cheers Spades  

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Hi Spades

If your property is currently worth $200k then you could potentially tap into about $50k depending on your current lenders policy. There will be some LMI payable (which may be able to be added to the loan).

This $50k can be used as the deposit/purchasing costs towards your next property.

In terms of structure - you can either have all loans with same bank or spread them across a couple (it ultimately depends on where the best deal is for you). You can have all loans with the same bank and still avoid cross collaterising.

If your current property is converting into an IP, your best bet would be to convert this loan to IO and your next loan (the PPOR loan) to either IO with an offset or P&I if you're not a disciplined saver. The IO with offset (for the PPOR) provides additional flexibility but is not ideal if you're only going to make the minimal IO repayments and blow the rest (P&I is at least a form of forced savings).

Hope that helps.

Jamie  

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Re:

Hi Jamie,
To access my equity for another property,am i better to top up my current loan say for renovations rather than a equity home loan?
Cheers Spades  

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Hi Spades

You (or your broker) need to demonstrate to the bank that the funds will be used as a deposit/purchasing costs for another property.

Some lenders aren't overly fussed with cashouts up to certain LVRs - others will cause a bit more grief. If your current lender isn't conducive to your needs than you could always look to move to one that is.

Cheers

Jamie  

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