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From: Mike .
Thinking aloud
From: david
Date: 8/4/00
Time: 12:34:35 PM
Im looking to buy another IP, however my dilemma is how to financially do this. One option is to use my equity in my own "home" as to borrow 110%. However, I'm a little reluctant to do this, as I wish to use my equity in my home for future purchases. If I used my equity now and then again and again, my house would be security for a number of houses, putting my house at a (slight) risk.
The reason I would use my equity in the future instead of now as in the future I would have built up a lot more equity in my own home and hence I can make a larger IP purchase with this.
My other option, using creative finance, is to take out a personal loan for a deposit, and my house won't be connected to the new Ip. Now I hear you saying we will need to show the bank 6 months saving. We have done this through paying extra on our house.
So in essence what this is doing is putting the personal loan on our 'home' and then using our extra payments on our home as a deposit. The advantage of this is the Ip and home are with different banks, and our home wont be used as security for the Ip, meaning we can use our 'larger' equity on our home in the future.
I hope everyone isn't too confused about this. Thanks
Thinking aloud
From: david
Date: 8/4/00
Time: 12:34:35 PM
Im looking to buy another IP, however my dilemma is how to financially do this. One option is to use my equity in my own "home" as to borrow 110%. However, I'm a little reluctant to do this, as I wish to use my equity in my home for future purchases. If I used my equity now and then again and again, my house would be security for a number of houses, putting my house at a (slight) risk.
The reason I would use my equity in the future instead of now as in the future I would have built up a lot more equity in my own home and hence I can make a larger IP purchase with this.
My other option, using creative finance, is to take out a personal loan for a deposit, and my house won't be connected to the new Ip. Now I hear you saying we will need to show the bank 6 months saving. We have done this through paying extra on our house.
So in essence what this is doing is putting the personal loan on our 'home' and then using our extra payments on our home as a deposit. The advantage of this is the Ip and home are with different banks, and our home wont be used as security for the Ip, meaning we can use our 'larger' equity on our home in the future.
I hope everyone isn't too confused about this. Thanks
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