After a period of investing everything in various business ventures (one that failed and one that has yet to come to fruition) I am in the process of rediscovering my passion for property. Up to 5 years ago I had successfully bought and renovated a number of houses, I loved it, then I got sidetracked.
I need to get into it again!
Problem!! I think I am too highly geared to be able to fund anything.
Here is my situation - Existing PPOR value $810k mortgage $720k (90% with mort ins) with local community bank. Approx $50k in Credit Cards etc.
Have no cash.
I am looking at a house worth $250k in need of renovation. I estimate $25k to return it to its former glory.
All I can think to do is - 95% loan for IP ($237k)
- bump up PPOR to 95% ($40k for 5% of IP & reno
costs) can not do with existing lender
I would probably need another $10k for Mort Ins, solicitor etc.
To assist servicability I could convert Credit cards to unsecured loan.
The house needs work so it is not attractive to First home buyers, but after reno it would be.
Any Ideas? Or am I getting all excited over nothing.
Thanks
Ken
I need to get into it again!
Problem!! I think I am too highly geared to be able to fund anything.
Here is my situation - Existing PPOR value $810k mortgage $720k (90% with mort ins) with local community bank. Approx $50k in Credit Cards etc.
Have no cash.
I am looking at a house worth $250k in need of renovation. I estimate $25k to return it to its former glory.
All I can think to do is - 95% loan for IP ($237k)
- bump up PPOR to 95% ($40k for 5% of IP & reno
costs) can not do with existing lender
I would probably need another $10k for Mort Ins, solicitor etc.
To assist servicability I could convert Credit cards to unsecured loan.
The house needs work so it is not attractive to First home buyers, but after reno it would be.
Any Ideas? Or am I getting all excited over nothing.
Thanks
Ken