my first question would be ..............
what is your 3 to 5 year financial goal ?
ta
rolf
Is there any reason/benefit to drawing more equity than the deposit for an IP?
- Thread starter albanga
- Start date
my first question would be ..............
what is your 3 to 5 year financial goal ?
ta
rolf
Hey Rolf,
I am really just trying to get a better understanding of the finance side of things as opposed to this being around my personal situation. I have never delved into drawing equity for investing.
The reason I said no LMI is because I'm curious as how that would look for IP3 not having enough equity available from IP1. I'm just also unsure how it would look in regards to your lenders?
For example let's say loan1 is Bankwest. I draw the 100k equity into a new BW seperate loan?
IP1 is ANZ and I draw the 40k into a new ANZ loan.
I now want to purchase IP2 so I use the 70k from my PPOR equity draw and get the remaining 280k loan now through Westpac. Is this correct so far and by using different lenders I am not x coll?
Moving on though I now want to buy IP3 and need 70k deposit. Is it as simple as using the remaining 30k equity draw from PPOR and then 40k from IP1 even though they are different lenders? If so I am guessing I then get IP3 remaining loan with yet another lender say Commbank.
If this is all right can I just ask when the banks let you draw the equity and it comes time for a deposit are you making out a 70k cheque from say Bankwest to Westpac?
Sorry for all the questions. Just really interest by all this but unsure how it is done correctly.
I am really just trying to get a better understanding of the finance side of things as opposed to this being around my personal situation. I have never delved into drawing equity for investing.
The reason I said no LMI is because I'm curious as how that would look for IP3 not having enough equity available from IP1. I'm just also unsure how it would look in regards to your lenders?
For example let's say loan1 is Bankwest. I draw the 100k equity into a new BW seperate loan?
IP1 is ANZ and I draw the 40k into a new ANZ loan.
I now want to purchase IP2 so I use the 70k from my PPOR equity draw and get the remaining 280k loan now through Westpac. Is this correct so far and by using different lenders I am not x coll?
Moving on though I now want to buy IP3 and need 70k deposit. Is it as simple as using the remaining 30k equity draw from PPOR and then 40k from IP1 even though they are different lenders? If so I am guessing I then get IP3 remaining loan with yet another lender say Commbank.
If this is all right can I just ask when the banks let you draw the equity and it comes time for a deposit are you making out a 70k cheque from say Bankwest to Westpac?
Sorry for all the questions. Just really interest by all this but unsure how it is done correctly.
please see below
ta
rolf
Hey Rolf,
I am really just trying to get a better understanding of the finance side of things as opposed to this being around my personal situation. I have never delved into drawing equity for investing.
Id look hard at getting clarity on my goals. that will make a lot of the finance questions obvious/superflous
The reason I said no LMI is because I'm curious as how that would look for IP3 not having enough equity available from IP1. I'm just also unsure how it would look in regards to your lenders?
Cash out an be problematic depending on LVR and lender, but if set up the right way its all good
For example let's say loan1 is Bankwest. I draw the 100k equity into a new BW seperate loan?
can do it that way
IP1 is ANZ and I draw the 40k into a new ANZ loan.
can do it that way
I now want to purchase IP2 so I use the 70k from my PPOR equity draw and get the remaining 280k loan now through Westpac. Is this correct so far and by using different lenders I am not x coll?
I expect you are over complicating the thing by wantting to use diffe lenders for each IP, when you get to IP 10 - then what
Moving on though I now want to buy IP3 and need 70k deposit. Is it as simple as using the remaining 30k equity draw from PPOR and then 40k from IP1 even though they are different lenders? If so I am guessing I then get IP3 remaining loan with yet another lender say Commbank.
Its simple but not obvious, spend some time with your broker or banker(s) to clarify what your goals are and then build a planned lending strategy around those goals.
If this is all right can I just ask when the banks let you draw the equity and it comes time for a deposit are you making out a 70k cheque from say Bankwest to Westpac?
typically yes, but Im seeing too many "justs" in your questions - it really can be that simple - but usually isnt
Sorry for all the questions. Just really interest by all this but unsure how it is done correctly.
ta
rolf
