Using home equity for IP in Sydney

Hi everybody,

We are looking to purchase an IP and wanted some advice. We are looking to purchase a $2mil IP in Sydney. We are still deciding between an OTP plan apartment or a house in a Double Bay/Vaucluse. Our current PPOR has been fully paid up. Conservatively we estimate the current market value of our PPOR to be about $1.1mil and would like to use that equity for our IP. We do not have any other loan commitments and have about $100K in savings. My partner is a medico, hence we are eligible for 90% LVR with no LMI for home loans.

Is it still possible for us to buy our $2mil IP? Also, would appreciate on what other things we should take note of? Thanks.
 
Seems straight forward to me.

Seek advice, both legal and credit, in relation to structuring the loans and names on the next property.
 
$2m OTP......Please tread carefully with this purchase - there is a lot to consider with OTP.

Do a google search and you'll find heaps of info on the pros/cons (there's much more of the latter).

Cheers

Jamie
 
$2m OTP......Please tread carefully with this purchase - there is a lot to consider with OTP.

Do a google search and you'll find heaps of info on the pros/cons (there's much more of the latter).

Cheers

Jamie

Agreed. A 10% shortfall in val (not uncommon at all with OTP) could be quite a painful experience.

Is this your first IP Bentley or is there an existing portfolio? Exposure to a single IP at 2m can be a huge risk centralisation. Not to say that it couldn't be a potentially great potential, but as always it's extremely important to enter a purchase like this with your eyes wide open. Making a mistake on a 300k property is a lot more forgiving than at multiples of the level etc.
 
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