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<font face="verdana, arial, helvetica" size="1" ><b>From:</b> Mike .</font>


1st investment property
From: jboyne@acchealth.com.au
Date: 7/3/00
Time: 12:48:02 PM

I've bought my own home and I would like to know at what percentage of owned equity should I achieve before I start thinking about an investment property?

Current equity level at about 21% (>100k).

Thanks JO

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<font face="verdana, arial, helvetica" size="1" ><b>Reply:</b> 1 </font>
<font face="verdana, arial, helvetica" size="1" ><b>From:</b> Mike .</font>


Re: 1st investment property
From: fernando
Date: 7/3/00
Time: 3:24:15 PM

Most banks will lend you up to 90% but this will incur mortgage insurance, the usual percentage is 80% and no insurance is payable. I have four IP's and I have never paid mortgage insurance because I think it is a waste of money. Also remember when you work out your equity to include your borrowing costs into the equation because this is what will push up the percentage. You will be borrowing 110% of the money. I hope this helps.

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<font face="verdana, arial, helvetica" size="1" ><b>Reply:</b> 1.1 </font>
<font face="verdana, arial, helvetica" size="1" ><b>From:</b> Mike .</font>


Re: 1st investment property
From: Don
Date: 7/3/00
Time: 10:07:54 PM

Regarding Mortgage Insurance, if you fork out the extra couple of grand for mortgage insurance, and it lets you get into another (say) $250,000 property a year earlier, and the property does the average thing and goes up 10% or so, and makes you $25,000 - isn't this better than sitting at 80% and waiting while you make nothing?

Don