From: Gail H
Hey everyone,
I have contracted to buy a block of
5 x 2-bedroom flats for $232,000 (subject to finance). The yield is $460 a week.
The problem is that I can't find a lender who will lend more than 70% of the purchase price (though Rolf is on job - God bless you Rolf). I have about $140,000 equity in my house to raise the deposit against, so I can raise the 30% needed, but is it worth it? The problem is I'd be tying up too much of my home equity in one IP purchase. On the other hand, though,I'm newly self-employed so doubt that anyone would lend me money for more IPs in the next year or so anyway.
Any views out there?
Thanks in advance everyone
(P.S. Beware of more than three properties on the one title - the lenders don't like it)
Gail
Hey everyone,
I have contracted to buy a block of
5 x 2-bedroom flats for $232,000 (subject to finance). The yield is $460 a week.
The problem is that I can't find a lender who will lend more than 70% of the purchase price (though Rolf is on job - God bless you Rolf). I have about $140,000 equity in my house to raise the deposit against, so I can raise the 30% needed, but is it worth it? The problem is I'd be tying up too much of my home equity in one IP purchase. On the other hand, though,I'm newly self-employed so doubt that anyone would lend me money for more IPs in the next year or so anyway.
Any views out there?
Thanks in advance everyone
(P.S. Beware of more than three properties on the one title - the lenders don't like it)
Gail
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