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From: Donna L


80% of your PPOR is $120k which means
you have 30K equity loan availble for
deposit and costs on other property. You
need $208k secured against the IP which
is 92%. This puts you into Mortgage
Insurance territory but avoids
cross-collateralisation. I think ANZ do a
95% product for investment properties.
Only you can decide whether you want to
come up with the MI (I think it can be
capitalised into the loan) or lock the two
properties together which can be a pain
down the track if you want to port a loan to
a better deal etc. There are those who
argue that they would pay the MI every
time because it is a relatively small
premium to pay over the course of the
loan when you can "control" more
property, i.e. 2 x 10% deposits rather than
1 x 20% deposit. The downside is the
additional risk if interest rates rise and
resultant serviceability issues.


Donna L
 
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