Financing my investments

Hi,
I’m relatively new to the PI scene. I’m getting very close to purchasing my first investment, however, I’m yet to decide on how I will finance it.
Can anyone give me some advise on how I should go about it. I have a decent amount of equity in my personal home that I had intended on utilising.
Cheers.
Simon
 
Hi,
I’m relatively new to the PI scene. I’m getting very close to purchasing my first investment, however, I’m yet to decide on how I will finance it.
Can anyone give me some advise on how I should go about it. I have a decent amount of equity in my personal home that I had intended on utilising.
Cheers.
Simon

Go see a mortgage broker would be my first suggestion. But in terms of how to finance it, what you're asking is how much of your own equity to put in it.

Really depends on how comfortable you are with risk. If you want to maximise the use of your equity (i.e. buy as much in IP as possible) you can get a 90+ LVR loan on the IP and use equity for the rest. However you will be charged LMI and the interest rate may be higher.

The safer option would be to borrow 80% LVR on the IP and put in 25% yourself using equity. Other people may have different opinions but I would avoid cross-colling at this point.

May I suggest talking to a mortgage broker before even thinking about signing a contract?
Alex
 
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