Buying first PPOR with 3 IPs underthe belt

[Greg Reid]

If your time frame is not until the next 2 to 5 years, then rethink what you can do to achieve being able to save a sizeable deposit by that time.

• On the basis your IP's are not cross securitised, look to revalue and refinance IP#1 to set up a LOC to 80%. Use that to pay for net property expenses over the next year or two however long it lasts.
• Set up a 100% offset against one of your IP loans and start pumping savings into that including the $60k saved now.
• If you have sufficient LOC facility, you could start debt recycling to hasten this savings program.

In two years you may be able to build your offset to $100k plus or more and then simply borrow at an 85% LVR.
Without knowing your individual circumstances, just from experience I would have thought you have the servicing capacity to borrow what you need.

Good luck with it.

 

[kathleneE]

Wow, Stay away from LMI but if already paid then pro rata could be applicable.

Looks like you have some more equity to use on the IPs which is fantastic. I would not recommend a cross. keep them separate and pull equity while limiting lmi costs as much as possible.

Just thought i'd reiterate. There are some sane brokers here

 

[allsuccess]

Oh dear. There is no need to cross - and that is why the LMI is $22k. What are these people doing???

First thing I'd say the OP should do is change the broker