Hi there,
my wife and I are new to property investment .
We've got ourselves an investment property that has now got some equity in it and we are now looking to buy another investment property.
Having spoken to people, read others posts on Somersoft, and been to some property seminars, the "wise" thing appears to use the equity in the first IP to use as a deposit for the next IP. We have roughly $70,000 equity in our first IP.
The thing is, due to having a baby, it is only myself working now. As a result the bank will only let us access a small portion of the equity. With the LMI costs it doesn't make sense to take this small amount out.
We do have enough savings that we can use as a deposit, but because so many people have suggested not using "your own money" to do this, I'm hesitant. If I don't, then the alternative is to have to wait for what could be up to a year or two before my wife begins working again part time. Then we can tap into more of the equity and go from there.
Seems odd not to use the savings that are there already to move forward.
Your thoughts and suggestions are very welcome.
Thanks!!!
my wife and I are new to property investment .
We've got ourselves an investment property that has now got some equity in it and we are now looking to buy another investment property.
Having spoken to people, read others posts on Somersoft, and been to some property seminars, the "wise" thing appears to use the equity in the first IP to use as a deposit for the next IP. We have roughly $70,000 equity in our first IP.
The thing is, due to having a baby, it is only myself working now. As a result the bank will only let us access a small portion of the equity. With the LMI costs it doesn't make sense to take this small amount out.
We do have enough savings that we can use as a deposit, but because so many people have suggested not using "your own money" to do this, I'm hesitant. If I don't, then the alternative is to have to wait for what could be up to a year or two before my wife begins working again part time. Then we can tap into more of the equity and go from there.
Seems odd not to use the savings that are there already to move forward.
Your thoughts and suggestions are very welcome.
Thanks!!!