Hi,
Just wanted to get some thoughts on the following situation my partner and I are in:
Purchased 1st home (sydney, nsw, now becoming IP) in 2010 415K, interest only loan
Loan Currently 332K
Wanting to purchase second home (also in sydney, nsw) soon, valued at around 500K - unsure whether to go for IO or Principal / Interest on this one as we may or may not move on from this property as we are doing with the first one.
Not enough savings to cover deposit + LMI + stamp duty + legals for 2nd property purchase, so mortgage broker has suggested cross collaterized option.
I.e. Total value of 2 properties will be roughly 915K, loans will be roughly 832K, total LVR 91% or so.
Is this a good idea - it seems the only option right now as we can't afford the costs any other way?
Also, is this a problem going forward, as we are interested in purchasing more properties.
Thanks in advance!
Just wanted to get some thoughts on the following situation my partner and I are in:
Purchased 1st home (sydney, nsw, now becoming IP) in 2010 415K, interest only loan
Loan Currently 332K
Wanting to purchase second home (also in sydney, nsw) soon, valued at around 500K - unsure whether to go for IO or Principal / Interest on this one as we may or may not move on from this property as we are doing with the first one.
Not enough savings to cover deposit + LMI + stamp duty + legals for 2nd property purchase, so mortgage broker has suggested cross collaterized option.
I.e. Total value of 2 properties will be roughly 915K, loans will be roughly 832K, total LVR 91% or so.
Is this a good idea - it seems the only option right now as we can't afford the costs any other way?
Also, is this a problem going forward, as we are interested in purchasing more properties.
Thanks in advance!