How to fund the next property

Well I guess one of those bad investors who has bought an investment property around 6 months back... It has grown a bit now my strategy is changing coz of some personal changes and I want to buy my principal Hom (which I dont have) don't have much of the saving left how can I fund a property around 700k? :confused:
 
Nothing wrong with that, plans change all the time.
Your property has grown in value so how does that make you a bad investor?
Can you work and save money as a deposit for your PPOR?
This is how most people do it.
 
Well I guess one of those bad investors who has bought an investment property around 6 months back... It has grown a bit now my strategy is changing coz of some personal changes and I want to buy my principal Hom (which I dont have) don't have much of the saving left how can I fund a property around 700k? :confused:

Hi Malayali

If you have some equity in the place you bought, and enough serviceability you might be able to make it work

have a chat with your broker/banker

ta
rolf
 
A number of questions need to be answered first and I'm sure one of the many great brokers on here could help.

Firstly though do you want to hold your current IP? If not then I would be selling it and using the equity as the deposit on your PPOR. This ofcourse also will give you more serviceability to afford your PPOR.

Other consideration is can you claim your IP as your PPOR? Did you ever live there and for how long? If so you may be able to claim a full CGT exemption as opposed to the 50%.
 
Well I guess one of those bad investors who has bought an investment property around 6 months back... It has grown a bit now my strategy is changing coz of some personal changes and I want to buy my principal Hom (which I dont have) don't have much of the saving left how can I fund a property around 700k? :confused:

Hiya

How is your current loan set up? Are the repayments P&I or IO?

What's it currently worth and how much is owing against it?

Which lender is it with?

As Rolf said - if you've got equity and your borrowing capacity is high enough - you might be able to purchase again.

Cheers

Jamie
 
Thanks

Appreciate the inputs all.. I guess the first step is to understand the serviceability of the loan and decide based on that.
 
That seems a very sensible place to start.

Can I ask: when you started the thread, what other starting point, or strategy for "funding a property around 700k", did you think might exist?
 
There may be sufficient equity in your investment property & if your income position is strong also factoring in the rental income from the investment, it may be possible to extend your borrowing further but you really need to speak to an experienced broker who is able to assess your situation the same way that the lenders will.

Even they are not able to help you with a purchase right now, a good broker will be able to discuss a plan of action with you so you can look at what steps you can take to position yourself for a new purchase within the next few months to ensure you are on the right track.

Regards,
 
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