Hi All
Just about to buy my first IP. Have spent weeks reading all the threads on here and gaining alot of knowledge. Just want to hear some experienced peoples advice on the following for financing on a sub250k IP, with plans to by IP2 within 12 months and then regularly from then on.
If this has been answered somewhere else please point me to the thred
Currently my PPoR is worth +450k with a 240k LOC with 125+ owing.
Broker advises
draw 20% plus costs out of PPoR and finance the rest to purchase IP so not to pay mortgage insurance
Tax Advisor advises
refinance PPoR with same bank that IP will be purchased borrowing the full amount for IP plus costs EG +100% finance on IP, thus keeping non dectuctable loans low and tax deductable loans high. Better for tax time.
He figured
PPoR value +450k
IP value +250K
Total equity 700k
Total loan with one bank would be approx 400k therefore under 80%lvr so no mortage insurance.
Any advice on the pros and cons of each setup would be greatly appreciated.
Thanks in advance
Ian
Just about to buy my first IP. Have spent weeks reading all the threads on here and gaining alot of knowledge. Just want to hear some experienced peoples advice on the following for financing on a sub250k IP, with plans to by IP2 within 12 months and then regularly from then on.
If this has been answered somewhere else please point me to the thred
Currently my PPoR is worth +450k with a 240k LOC with 125+ owing.
Broker advises
draw 20% plus costs out of PPoR and finance the rest to purchase IP so not to pay mortgage insurance
Tax Advisor advises
refinance PPoR with same bank that IP will be purchased borrowing the full amount for IP plus costs EG +100% finance on IP, thus keeping non dectuctable loans low and tax deductable loans high. Better for tax time.
He figured
PPoR value +450k
IP value +250K
Total equity 700k
Total loan with one bank would be approx 400k therefore under 80%lvr so no mortage insurance.
Any advice on the pros and cons of each setup would be greatly appreciated.
Thanks in advance
Ian