First Time Investor - Re-Finance
- Thread starter Hawks100
- Start date
If you can get an 80% LVR loan, it would work out to $650,000*0.8 = 520,000. Pay out the $440,000 you owe and you are left with $80,000 of available equity to invest......more if you want to ramp it up to 90%LVR (if you qualify and if you pay mortgage insurance).
Every lender has different serviceabilty criteria. Speak to a good MB about your options.
$80K is stacks to start out with. If you are clever you can use that one deposit over and over again for each IP.
I had 5 kids and a stay-at-home wife when I started - and only then with a $30K deposit (from a PPOR equity draw-down). I've never saved a deposit in my life - apart from the very first for a PPOR.
You just need a strategy
Hiya
Important that u decide on a goal and a financing strategy to achieve it.
The refinance bit is only one Small ( but important) bit of the puzzle
You have to have an idea of where you want to go so u can choose the right vehicle.
ta
rolf
Important that u decide on a goal and a financing strategy to achieve it.
The refinance bit is only one Small ( but important) bit of the puzzle
You have to have an idea of where you want to go so u can choose the right vehicle.
ta
rolf
Would be very interest to know more about how you were able to use the same deposit etc over and over again???
I have read a lot about people arranging lines of credit for deposits etc is this a good way to go?
And if I have $70k-$80k equity am I best to split and maybe look at purchasing two ip's? I guess one of our major concerns is more cash flow.
I have read a lot about people arranging lines of credit for deposits etc is this a good way to go?
And if I have $70k-$80k equity am I best to split and maybe look at purchasing two ip's? I guess one of our major concerns is more cash flow.
woah
slow down a little
Work out where you want to go and what you can afford.
The build your finance structure around your needs.
If you are having issues working through what you want, most brokers from this forum will be able to take you through a "guided discovery process" that will help u to work out whats possible
ta
rolf
slow down a little
Work out where you want to go and what you can afford.
The build your finance structure around your needs.
If you are having issues working through what you want, most brokers from this forum will be able to take you through a "guided discovery process" that will help u to work out whats possible
ta
rolf
Great advice from Rolf - as always!
If you are on a high salary & paying a fair whack of tax, you can look at whether some of the benefits of negative gearing may be for you.
Alternately, you could look for a property where the rent pretty much covers the bills so you're holding costs are maybe $20 a week or lower.
I think you need to decide which investing strategy suits your family's needs.
You can set up an income tax withholding variation form which will give you the estimated tax dollars back in your pocket every week instead of waiting for a return at the end of the year. This helps with the cost of holding an IP.
You could set up a LOC secured against the IP loan to cover the holding costs of the property...but as Rolf said, that's down the track a bit when you have decided on a strategy.
Don't just assume buying a place will give you dollars in the bank. You need to buy the right place in the right location etc etc for you!...research, research, research....do figures on places & calculate how much they would make you/how much you need to cover in the short term......then contemplate buying
If you are on a high salary & paying a fair whack of tax, you can look at whether some of the benefits of negative gearing may be for you.
Alternately, you could look for a property where the rent pretty much covers the bills so you're holding costs are maybe $20 a week or lower.
I think you need to decide which investing strategy suits your family's needs.
You can set up an income tax withholding variation form which will give you the estimated tax dollars back in your pocket every week instead of waiting for a return at the end of the year. This helps with the cost of holding an IP.
You could set up a LOC secured against the IP loan to cover the holding costs of the property...but as Rolf said, that's down the track a bit when you have decided on a strategy.
Don't just assume buying a place will give you dollars in the bank. You need to buy the right place in the right location etc etc for you!...research, research, research....do figures on places & calculate how much they would make you/how much you need to cover in the short term......then contemplate buying
