Hi Guys,
We came across an opportunity to buy our upgrade house about a year before we planned to do so (and as such we haven't planned for it). The opportunity is good (about $50-60k below market value).
Problem that I have is that our deposit is currently tied up in our existing home, how can I buy the house before selling our existing one without paying LMI?
The numbers:
Current home value: $410k
Current home loan balance: $240k (of which $40k is sitting in redraw)
New home value: $700k - $720k
New home buy price: $660k
New home purchasing costs: $40k (duty, legals, etc...)
We thought about keeping existing home and renting it out, but it's all structured wrong (no tax benefit) and the property is high maintenance (garden requires 1 day a week to keep in shape).
Any ideas of products or strategies that I can look at to make this happen? Please help...
Edit - when we bought the existing house we paid LMI (took a 95% loan on $321k buy price)
We came across an opportunity to buy our upgrade house about a year before we planned to do so (and as such we haven't planned for it). The opportunity is good (about $50-60k below market value).
Problem that I have is that our deposit is currently tied up in our existing home, how can I buy the house before selling our existing one without paying LMI?
The numbers:
Current home value: $410k
Current home loan balance: $240k (of which $40k is sitting in redraw)
New home value: $700k - $720k
New home buy price: $660k
New home purchasing costs: $40k (duty, legals, etc...)
We thought about keeping existing home and renting it out, but it's all structured wrong (no tax benefit) and the property is high maintenance (garden requires 1 day a week to keep in shape).
Any ideas of products or strategies that I can look at to make this happen? Please help...
Edit - when we bought the existing house we paid LMI (took a 95% loan on $321k buy price)