hi all
wondering if i can get some advice on my serviceability and financing structure.
here's a brief of my situation.
1. property 1 (PPOR split account 1) & property 2 (split account 2) are x coll, yeah i know it shouldn't be done but i was naive back then. value $1.235m owing $680k equity $555k or 45% i'm planning to setup an offset account on split account 1 (PPOR) and transfer our savings into this account, is this the approach?
2. property 3 is to be developed by building 3 units and rented out when completed. expected cost of development is $700K (will be borrowing from the bank) these will have +ve cash flow as the land was purchased a long time ago. when this is completed i'll get the bank to revalue the 3 villas, how and what do i need to do to draw on that equity and have the cash sitting in an account so that i can use it to buy more properties? do i create another offset account or setup a split loan account?
3. property 1,2,3 are in joint names, we have bought an OTP property in joint names for $635k with 10% deposit already paid and will need to borrow from the bank when the developers have completed construction. our intention is to live in this property.
4. property 4 value is $440K and owing $225K equity 49% in my name. i'm deliberating on using the equity here to purchase property but wary of whether it will cause a problem on serviceability or ability to borrow from the banks point of view? remember we need to borrow for item 2 & 3. +ve cash flow
5. property 5 value is $450k owing $200k equity 55% in wife's name. again there's equity that we can use. +ve cash flow
I would like to know if the bank will continue to support our purchases using the equity in 4 & 5 when 2 & 3 are in play?
If we refinance property 4 & 5 do we have the cash sit in their respective split account? or in an offset account? or should we look at LOC?
TIA
Jerry
wondering if i can get some advice on my serviceability and financing structure.
here's a brief of my situation.
1. property 1 (PPOR split account 1) & property 2 (split account 2) are x coll, yeah i know it shouldn't be done but i was naive back then. value $1.235m owing $680k equity $555k or 45% i'm planning to setup an offset account on split account 1 (PPOR) and transfer our savings into this account, is this the approach?
2. property 3 is to be developed by building 3 units and rented out when completed. expected cost of development is $700K (will be borrowing from the bank) these will have +ve cash flow as the land was purchased a long time ago. when this is completed i'll get the bank to revalue the 3 villas, how and what do i need to do to draw on that equity and have the cash sitting in an account so that i can use it to buy more properties? do i create another offset account or setup a split loan account?
3. property 1,2,3 are in joint names, we have bought an OTP property in joint names for $635k with 10% deposit already paid and will need to borrow from the bank when the developers have completed construction. our intention is to live in this property.
4. property 4 value is $440K and owing $225K equity 49% in my name. i'm deliberating on using the equity here to purchase property but wary of whether it will cause a problem on serviceability or ability to borrow from the banks point of view? remember we need to borrow for item 2 & 3. +ve cash flow
5. property 5 value is $450k owing $200k equity 55% in wife's name. again there's equity that we can use. +ve cash flow
I would like to know if the bank will continue to support our purchases using the equity in 4 & 5 when 2 & 3 are in play?
If we refinance property 4 & 5 do we have the cash sit in their respective split account? or in an offset account? or should we look at LOC?
TIA
Jerry
