My property plans
- Thread starter JustaDreamer
- Start date
I always use 100% in my calcs just because of the interest is that anyway.
Eg House is worth 450K so I can pull 50k equity out of it and use that as a deposit on a 500K IP. I basically have to pay 500k loan's worth of interest to make that happen. Otherwise the opportunity cost is 50k worth of shares or cars or coke or whatever.
Mrdobalina, I don't plan on selling the properties any time soon so if they do drop 20% I will just hold on to them and I cant really see the rent from the properties dropping.
No bank will lend 100% I will be using the equity in property 1 will give me 10% deposit for property 3 and the gold will give me 10% for property 4
Me and my mate just had to come up with 70k between us to buy my PPOR which cost 499k.
No bank will lend 100% I will be using the equity in property 1 will give me 10% deposit for property 3 and the gold will give me 10% for property 4
Me and my mate just had to come up with 70k between us to buy my PPOR which cost 499k.
Property #1 320k Adelaide Debt 210
Property #2 500k Perth Debt 225
Are you paying down the debt PI?
Would you be able to accelerate your goal of 5 by IO then using deposits to make purchases, then once you have the 5 decrease debt on PPOR then once paid off work at the IP's.
Also what is your plan with the 1/2 owned property in Perth? Is that with a spose or friend? Do you have a good plan for this property? Exit strategy? Are you aware of the lending difficulties this might cause?
edit: love that you have a plan its good to see
Property #2 500k Perth Debt 225
Are you paying down the debt PI?
Would you be able to accelerate your goal of 5 by IO then using deposits to make purchases, then once you have the 5 decrease debt on PPOR then once paid off work at the IP's.
Also what is your plan with the 1/2 owned property in Perth? Is that with a spose or friend? Do you have a good plan for this property? Exit strategy? Are you aware of the lending difficulties this might cause?
edit: love that you have a plan its good to see
Brady, At the moment property 1 is P&I but once I buy property 3 I'll change that back to IO.
The Perth property I went half with a friend(only problem so far is we have to swop master bedroom every 6 months so its fair), the plan was hold it for 5 years until the loan goes P&I then either one of us buy the other out or sell it and move on.
As for difficulties it was a lot easier than I thought getting a joint loan, but I will be keeping the properties in Adelaide with a different bank than the one I have the joint account with.
The Perth property I went half with a friend(only problem so far is we have to swop master bedroom every 6 months so its fair), the plan was hold it for 5 years until the loan goes P&I then either one of us buy the other out or sell it and move on.
As for difficulties it was a lot easier than I thought getting a joint loan, but I will be keeping the properties in Adelaide with a different bank than the one I have the joint account with.
Getting the joint loan isn't ever an issue. It can often become a problem when you try getting your next loan, as alot of the time banks will apportion the whole debt.
