First IP loan structure?

[teddy1]

Hi All,

I am looking at investing in property for the long term to help my 2 children (2 and newborn on way) and my wife and i financialy stable when heading into retirement by 50 would be nice!( we are 33)

We currently own our own home with a value of around 400-430k (200-240k equity)

My wife will be on maternity leave in 5 months and i dare say wont work next year. Im on 85k per year in a stable job for 7+ years.

Firstly advice on loan structure would be good. I have seen numerous brokers with all different advice.

Equity: $240k
Purchase/loan price: $650k ( now looking at 1st Ip around 400k now) to reduce risk.

1. Use 340k from equity, split over 80% lvr with 1/2 deposit and 1/2 offset account. Loan is for 520k
2. No offset account, equity in home and loan for 520k (80% LVR)
3.90% LVR, LMI and loan of 585k

I know ive prob left info out, just let me know...

I am also deciding best place to invest? Suggestions from buyers agents are Bris and Newcastle and 1 property soon around 300-400k, 2nd IP in 6-12 months around 500k+

Thanks for your advice
Jack

 

[Shahin_Afarin]

What's the loan amount against your current property?

 

[Rolf Latham]

Firstly advice on loan structure would be good. I have seen numerous brokers with all different advice.

Jack

Welcome to the forum

The chances of you getting any specific advice that you can cling to are somewhat limited.........

Thats not because of the lack of advice per se, but I suggest you dont yet have a clear view of what your end game is, therefore no clear view of what the path is to get there.

A broker may be able to help you with that guided discovery, but I dare say you are fishing for the wrong fish, with the wrong gear and in the wrong pond.

Focus on what you want to achieve and direct your advisors accordingly.

With clarity, comes certainty, from certainty you can develop specific advice and direction.

ta

rolf

 

[teddy1]

What's the loan amount against your current property?

We currently own our home - it is left open at this stage

 

[teddy1]

Welcome to the forum

The chances of you getting any specific advice that you can cling to are somewhat limited.........

Thats not because of the lack of advice per se, but I suggest you dont yet have a clear view of what your end game is, therefore no clear view of what the path is to get there.

rolf

Thankyou

My current plan is:
Short term (5-7yrs): Have cashflow or enough equity in 1st-3rd IP within 5 years to help with kids education and a potential Aussie holiday.
Med Term (7-12yrs): Education & An overseas/local holiday, 2nd hand car and acquire more property for wealth creation.
Long term (15yrs +): Have passive income through property and set-up to retire and own property/cashflow+ portfolio that my children can perhaps move into or sell when there 21 and over.