Hi all,
I'm looking at buying my first IP next year.
I purchased my first PPOR in 2012 for $423,000 (around the median for the area) with a 20% deposit leaving a debt of $338,000. The median house price for the area has increased to $470,000.
Assuming the house actually is valued at this, and I can use 80% of my equity for the IP, I should have $38,000 ([470,000 * 0.80] - 338,000) available for the new deposit (not a whole lot).
I have an IO loan on my house, and have saved up $80,000 in my 100% offset account.
My question is, when looking at financing the first IP, would I be better off waiting for the equity to increase, or should I just use the funds in my offset account.
Fairly new to this, appreciate any help
Thanks
I'm looking at buying my first IP next year.
I purchased my first PPOR in 2012 for $423,000 (around the median for the area) with a 20% deposit leaving a debt of $338,000. The median house price for the area has increased to $470,000.
Assuming the house actually is valued at this, and I can use 80% of my equity for the IP, I should have $38,000 ([470,000 * 0.80] - 338,000) available for the new deposit (not a whole lot).
I have an IO loan on my house, and have saved up $80,000 in my 100% offset account.
My question is, when looking at financing the first IP, would I be better off waiting for the equity to increase, or should I just use the funds in my offset account.
Fairly new to this, appreciate any help
Thanks