Hi All,
Hope you all had a nice Christmas and New Year celebration.
I am currently arranging finances to have them in place so I can move quickly to purchase my first IP, when the right opportunity presents itself.
I currently have a main residence worth $450k with debt of $150k against it. This facility also has a redraw account against it which currently has $70k in it.
I am organising a line of credit (recognising that the redraw part of my current facility will reduce the amount I can borrow) so that when I find the right IP, I can use part of the LOC to fund the deposit for the new IP.
The balance of the purchase for the new IP (plus associated costs) I would look to have funded by a separate interest-only loan, preferably with a different bank. This way, I should be able to avoid cross-collateralisation.
Any balance of my LOC would be then be used as a deposit for any other IP opportunity that arose with the balance of any further funding to made through yet again a different bank, ideally.
May I please lean on your vast experiences and kindly ask if my strategy above seems appropriate and if there are any other points I should be considering at this time, so my finances are in place PRIOR to finding the right IP for me.
Many thanks
Zargor
Hope you all had a nice Christmas and New Year celebration.
I am currently arranging finances to have them in place so I can move quickly to purchase my first IP, when the right opportunity presents itself.
I currently have a main residence worth $450k with debt of $150k against it. This facility also has a redraw account against it which currently has $70k in it.
I am organising a line of credit (recognising that the redraw part of my current facility will reduce the amount I can borrow) so that when I find the right IP, I can use part of the LOC to fund the deposit for the new IP.
The balance of the purchase for the new IP (plus associated costs) I would look to have funded by a separate interest-only loan, preferably with a different bank. This way, I should be able to avoid cross-collateralisation.
Any balance of my LOC would be then be used as a deposit for any other IP opportunity that arose with the balance of any further funding to made through yet again a different bank, ideally.
May I please lean on your vast experiences and kindly ask if my strategy above seems appropriate and if there are any other points I should be considering at this time, so my finances are in place PRIOR to finding the right IP for me.
Many thanks
Zargor