Hi,
I'm a forum newbie and have a few q's regarding finance for future IP's.
Firstly the background, my wife and I purchased our first IP in Feb this year, a unit in Newcastle for $556k. We borrowed $430k and have an offset account setup with the CBA wealth package with $65k in it and we owe $358.
We live and work overseas (tax free cash
), and we have a combined income of $140k with minimal living expenses. We aim to save $90-100k a year after taking holidays etc.
Our IP is renting for $600 per week and we have monthly IO payments of around $1600, strata of $8k pa, and the usual council/water rates and insurance.
When we first approached the CBA we could lend $2.4mil, that figure is around the $2mil now after our first IP purchase.
We would like to invest the remaining $2mil in more IP's, 5-6 asap, with a buy and hold mindset, and eventually draw the equity from the IP's and live off that cash ($90-100k a year is the goal). So getting the loan structure and setup right is important at this point.
So my q's are:
What loan structure do you recommend?
Should we x-coll against our current IP?
What about Offset vs LOC?
Should we borrow as much as possible and pay a large LMI fee?
What is the max LVR a bank will give us?
Which lenders products would suit our needs?
Any help would be much appreciated.
Swoop9.
I'm a forum newbie and have a few q's regarding finance for future IP's.
Firstly the background, my wife and I purchased our first IP in Feb this year, a unit in Newcastle for $556k. We borrowed $430k and have an offset account setup with the CBA wealth package with $65k in it and we owe $358.
We live and work overseas (tax free cash
), and we have a combined income of $140k with minimal living expenses. We aim to save $90-100k a year after taking holidays etc.Our IP is renting for $600 per week and we have monthly IO payments of around $1600, strata of $8k pa, and the usual council/water rates and insurance.
When we first approached the CBA we could lend $2.4mil, that figure is around the $2mil now after our first IP purchase.
We would like to invest the remaining $2mil in more IP's, 5-6 asap, with a buy and hold mindset, and eventually draw the equity from the IP's and live off that cash ($90-100k a year is the goal). So getting the loan structure and setup right is important at this point.
So my q's are:
What loan structure do you recommend?
Should we x-coll against our current IP?
What about Offset vs LOC?
Should we borrow as much as possible and pay a large LMI fee?
What is the max LVR a bank will give us?
Which lenders products would suit our needs?
Any help would be much appreciated.
Swoop9.
