Hi there,
This is our 2nd purchase and we are quite green still on buying property. I was hoping that someone could confirm that my potential loan structure is sound as we are going to make an offer on a property and obtain finance soon. This is for a PPOR which we do not intend to convert to an IP as it is semi rural and I personally don’t think it will have a very good rental yield.
Property price $535K
Deposit $200K
Loan amount $335K split into 2 parts
$100K Fixed P&I – to give some certainty of repayments and also so that we can drop money from the offset in here if we want to get a LOC to purchase an IP. We would also feel like we would be paying the property off as vs having the full amount in an interest only arrangement
$235K Variable Interest only with 100% offset – We would like to park money in here so as to lower our repayments.
We would appreciate any thoughts or feedback. Thanks in advance
This is our 2nd purchase and we are quite green still on buying property. I was hoping that someone could confirm that my potential loan structure is sound as we are going to make an offer on a property and obtain finance soon. This is for a PPOR which we do not intend to convert to an IP as it is semi rural and I personally don’t think it will have a very good rental yield.
Property price $535K
Deposit $200K
Loan amount $335K split into 2 parts
$100K Fixed P&I – to give some certainty of repayments and also so that we can drop money from the offset in here if we want to get a LOC to purchase an IP. We would also feel like we would be paying the property off as vs having the full amount in an interest only arrangement
$235K Variable Interest only with 100% offset – We would like to park money in here so as to lower our repayments.
We would appreciate any thoughts or feedback. Thanks in advance