Hi all,
I have previously posted a thread 'Using IP to buy PPOR' we are still considering selling our IP to get into our PPOR this decade instead of maybe never! IP was valued at $300k 2 1/2 yrs ago, mortgage owing $216k ($170k fixed at 7.74% til Oct 2010, $50k var at 5.89%) Rental return on IP is $350pw gross. We are paying rent of $330pw. We need $400k to buy a similar PPOR where we live now (capital growth is higher here so more$$) We are self employed in a new small business (15 months old ABN now) We don't have enough equity to avoid paying LMI on an expected 60% LVR (going lo doc) for a deposit or for the new mortgage on PPOR. Are you still with me? Should we sell our IP (once our fixed rate expires in Oct) and if we did, would we have enough for a deposit on a $400k mortgage (assuming new house is priced at around $380k?) I just don't see how we can raise a new deposit to buy here without selling our first home (8 yrs old 4 BR, 2 Bthrms, DLUG) which due to relocation is our IP. Do I have this right?
Thanks in advance, I thought owning equity got you more property this is doing my head in...
I have previously posted a thread 'Using IP to buy PPOR' we are still considering selling our IP to get into our PPOR this decade instead of maybe never! IP was valued at $300k 2 1/2 yrs ago, mortgage owing $216k ($170k fixed at 7.74% til Oct 2010, $50k var at 5.89%) Rental return on IP is $350pw gross. We are paying rent of $330pw. We need $400k to buy a similar PPOR where we live now (capital growth is higher here so more$$) We are self employed in a new small business (15 months old ABN now) We don't have enough equity to avoid paying LMI on an expected 60% LVR (going lo doc) for a deposit or for the new mortgage on PPOR. Are you still with me? Should we sell our IP (once our fixed rate expires in Oct) and if we did, would we have enough for a deposit on a $400k mortgage (assuming new house is priced at around $380k?) I just don't see how we can raise a new deposit to buy here without selling our first home (8 yrs old 4 BR, 2 Bthrms, DLUG) which due to relocation is our IP. Do I have this right?
Thanks in advance, I thought owning equity got you more property this is doing my head in...