Hi all, it's been a long time since I last posted. We got our permit for our subdivision but sold the property with the permit due to circumstances at the time. No regrets though as it got us into our PPOR in a desirable location for schools, transport etc and I believe long term, great capital growth as well.
We have an investment property in regional VIC and are keen to continue investing. We are keen to get a property in metropolitan Melbourne, preferably a one or 2 bedder older style apartments/units to do up and then rent out., and retain for downsizing if it suits our needs in the future.
One of us is in a medico profession and I did not realise that most banks will waiver the LMI for up to 90% LVR. We are currently at 80% LVR (combined PPOR and IP) for a portfolio just over a mil. Does this mean we are able to draw out our equity up to 90% LVR and borrow 90% for the new property as well???
I would ideally want to borrow 110-115%(purchase price of 2nd IP, plus stamp duty + reno costs, to maximise tax deductions). Is it right to assume I can use the extra 10% equity from my current properties, borrow 90% LVR for the 2nd IP and if there is any extra $$ leftover from the 10% equity, to chuck it into my offset account against my PPOR?? I would certainly use all the extra equity from the the 1st IP to reinvest into the 2nd IP but will probably need to top it with some equity from the PPOR, with any extra leftover $$ being parked into the offset account.
Is that how the LMI waiver works?? And is it possible to compound the effects for future properties down the track ESP if there is appreciable capital growth??
Thanks for your time and I hope the above makes some sense!!
We have an investment property in regional VIC and are keen to continue investing. We are keen to get a property in metropolitan Melbourne, preferably a one or 2 bedder older style apartments/units to do up and then rent out., and retain for downsizing if it suits our needs in the future.
One of us is in a medico profession and I did not realise that most banks will waiver the LMI for up to 90% LVR. We are currently at 80% LVR (combined PPOR and IP) for a portfolio just over a mil. Does this mean we are able to draw out our equity up to 90% LVR and borrow 90% for the new property as well???
I would ideally want to borrow 110-115%(purchase price of 2nd IP, plus stamp duty + reno costs, to maximise tax deductions). Is it right to assume I can use the extra 10% equity from my current properties, borrow 90% LVR for the 2nd IP and if there is any extra $$ leftover from the 10% equity, to chuck it into my offset account against my PPOR?? I would certainly use all the extra equity from the the 1st IP to reinvest into the 2nd IP but will probably need to top it with some equity from the PPOR, with any extra leftover $$ being parked into the offset account.
Is that how the LMI waiver works?? And is it possible to compound the effects for future properties down the track ESP if there is appreciable capital growth??
Thanks for your time and I hope the above makes some sense!!