I am running at 66% LVR ($1m loans to $1.5m value) and want to withdraw some equity for the next IP deposit so that I can keep my offset savings ($30k) as a buffer.
We have $3k per month to service our next IP.
I want to buy a $300k IP which would mean accessing $60k of equity (assuming 80% LVR), or I could reduce that to $30k and pay LMI.
To give a bit of background, we have bought 3 Ips in recent years which are all CF+, however they haven't gone up in value that much. There might be $100k of equity but across all 3 Ips.
The bulk of the accessible equity is in our PPOR ($120k).
The way I see it, I have a few options:
1) Take out $60k of equity from PPOR
2) Take out $60k of equity from 2 Ips (not sure if my bank will allow this if it comes from 2 Ips? Can any brokers shed light please?)
3) Take out $30k of equity from 1 IP and pay LMI
For tax deductible reasons it is better to take the equity out from IP over PPOR, right?
Just wondering what others would do in my situation.
I'm probably thinking of option 3) but would be interested to know if I've missed anything.
Cheers
Auror
PS Incidentally it is interesting to read back on my old thread from 2 years ago.
Most SS'ers advised me to go with 90% LVR.
If I had taken your advice then I wouldn't be having this problem.
http://somersoft.com/forums/showthread.php?t=59635
Time to eat my hat methinks: always, always, always go with 90% LVR even if you think you have stacks of savings!
We have $3k per month to service our next IP.
I want to buy a $300k IP which would mean accessing $60k of equity (assuming 80% LVR), or I could reduce that to $30k and pay LMI.
To give a bit of background, we have bought 3 Ips in recent years which are all CF+, however they haven't gone up in value that much. There might be $100k of equity but across all 3 Ips.
The bulk of the accessible equity is in our PPOR ($120k).
The way I see it, I have a few options:
1) Take out $60k of equity from PPOR
2) Take out $60k of equity from 2 Ips (not sure if my bank will allow this if it comes from 2 Ips? Can any brokers shed light please?)
3) Take out $30k of equity from 1 IP and pay LMI
For tax deductible reasons it is better to take the equity out from IP over PPOR, right?
Just wondering what others would do in my situation.
I'm probably thinking of option 3) but would be interested to know if I've missed anything.
Cheers
Auror
PS Incidentally it is interesting to read back on my old thread from 2 years ago.
Most SS'ers advised me to go with 90% LVR.
If I had taken your advice then I wouldn't be having this problem.
http://somersoft.com/forums/showthread.php?t=59635
Time to eat my hat methinks: always, always, always go with 90% LVR even if you think you have stacks of savings!