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Best time to top up your existing properties

Discussion in 'Property Finance' started by Hay78, 30th Sep, 2015.

  1. Hay78

    Hay78 New Member

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    Sydney
    Hi all

    I'm looking for property investors opinion about when is best time to top up your properties (PPOR or IPs).
    Currently we have 2 IPs and 1 PPOR and are looking to purchase another 2 IPs. Our cashflow currently are quite neutral (or slightly negative). So we are really only looking for cashflow positive IP.
    We are gonna use cash to purchase these but we actually have equities on our current properties.

    We are considering to top up the properties since their value has increased. Just in case if property market value gonna drop, we have some cash that we can use to buy in the future. Are these good move in term of property investing?
     
  2. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Save your cash for future non deductible purchases. Extract all the equity you can while you can and have it sitting there ready. You dont have to use it but its there and available if a good deal pops up or major expenses pop up on your existing ips.

    And have fun shopping :)
     
  3. Hay78

    Hay78 New Member

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    Thanks for the tips. We'll be doing top up soon. Looks like sydney price has peak, especially after investor loans rate hikes.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Be careful when 'topping up" - do it wrong and you can completely muck up your tax deductions.
    I would recommend creating a new loan split for any equity so there's a clear definition between your current PPOR and investment loans.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  6. HUGH72

    HUGH72 Well-Known Member

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    Best time is when you are employed and don't actually need the money.
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Agreed.

    Best to get it when you don't need it - because when you do need it, it's usually required in a hurry....and the bank might say no.

    It will also become increasingly difficult to release equity as banks continue to tighten their servicing calculators and some start to restrict the amount of equity they will let borrowers release.

    Cheers

    Jamie
     
    bob shovel likes this.
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Are we still talking loans here?
     
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    when would now be a good time

    ta
    rolf