Hi
I've been lurking here for a couple of years, mostly because I've felt stupid in the company of so many with buckets more experience (been wondering actually if that is a problem in getting more noobs on here to participate hmmm).
Finally got off my lazy butt and bought an IP. I'm happy enough with the loan setup, read enough SS threads to know what definitely not to do, but curious to know if this could/should have been done either simpler or differently*:
- PPOR current valuation 480k-500k. Loan 250k (4.89% interest only). Offset funds 170k (i.e. interest calculated on 80K atm).
- Took a $108k 2nd separate loan secured against PPOR to fund 20% & stamps/legals for IP (4.89% interest only).
- IP purchased for $450k. 80% loan (360k) secured against IP (interest only 4.89%, but looking to fix this rate @ 4.99% for 5 years).
No LMI, no x-coll, but same bank used for the 3 loans (staff deal, no fees etc).
Offset funds to be used for next PPOR to be purchased hopefully within a year. Current PPOR would become IP2 at that point.
Funny how quickly horizons can shift once you buy Prop #2. I can see that #3 is within reach, but now I'm trying to figure out how to get #4.
*If relevant, age 28, single, ave income, buy & hold type, risk shy i.e. would not be terribly comfortable with overall portfolio going above 80% etc.
Thanks all. Would never have believed I could get started were it not for this forum. Owe a lot to it (you).
I've been lurking here for a couple of years, mostly because I've felt stupid in the company of so many with buckets more experience (been wondering actually if that is a problem in getting more noobs on here to participate hmmm).
Finally got off my lazy butt and bought an IP. I'm happy enough with the loan setup, read enough SS threads to know what definitely not to do, but curious to know if this could/should have been done either simpler or differently*:
- PPOR current valuation 480k-500k. Loan 250k (4.89% interest only). Offset funds 170k (i.e. interest calculated on 80K atm).
- Took a $108k 2nd separate loan secured against PPOR to fund 20% & stamps/legals for IP (4.89% interest only).
- IP purchased for $450k. 80% loan (360k) secured against IP (interest only 4.89%, but looking to fix this rate @ 4.99% for 5 years).
No LMI, no x-coll, but same bank used for the 3 loans (staff deal, no fees etc).
Offset funds to be used for next PPOR to be purchased hopefully within a year. Current PPOR would become IP2 at that point.
Funny how quickly horizons can shift once you buy Prop #2. I can see that #3 is within reach, but now I'm trying to figure out how to get #4.
*If relevant, age 28, single, ave income, buy & hold type, risk shy i.e. would not be terribly comfortable with overall portfolio going above 80% etc.
Thanks all. Would never have believed I could get started were it not for this forum. Owe a lot to it (you).