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Should/Can I buy a second IP?

Discussion in 'Property Finance' started by Wazza23, 31st Jan, 2016.

  1. Wazza23

    Wazza23 Member

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    Hello and glad to be a new member of this forum

    My current situation is as follows:

    Investment property - Loan 630k I/O, latest bank valuation for the home - 700k

    Owner occupied - Loan 409k currently P+I, latest bank valuation - 620k

    Savings ~ 120k

    Is there a way of buying a second IP (~600k) and using the increased value of the two homes to finance it?

    Interested to hear your thoughts, Cheers
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Hi Wazza,

    Yes there is, but it will depend on your overall income/expenditure as to whether you can service the new loans.

    Did you pay LMI on your IP, or are your loans crossed?

    It looks like there's only about $17k equity if you have to stay under 80% on both.
     
    Last edited: 31st Jan, 2016
  3. Wazza23

    Wazza23 Member

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    That shouldn't be an issue.
     
  4. bob shovel

    bob shovel Well-Known Member

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    Let's go shopping then!
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I just edited my earlier post - there's not much equity if you're under 80% LVR, but if you paid LMI on your IP and you aren't crossed, you may be able to access more out of your PPOR.

    Do you have any savings?
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Should and could are different things

    Ta

    Rolf
     
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  7. Greyghost

    Greyghost Well-Known Member

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    OP said savings are $120k
     
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  8. Wazza23

    Wazza23 Member

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    I got the IP loan first, and that was 90% with NO LMI. The O/O loan came a couple of years after that and again when adding up the loan totals was 90% with no LMI.
     
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  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Ha - read OP too quickly :)
    Right! What do you do for work?
     
  10. Wazza23

    Wazza23 Member

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    Medical field.

    So how will the loan structure work with a 3rd property?
     
  11. HUGH72

    HUGH72 Well-Known Member

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    Is that you Bob? Dissociative identity disorder?
     
  12. God_of_money

    God_of_money Well-Known Member

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    BOQ specialist offers 3.99% interest rate P&I for OO loan 100%LVR without LMI.. hard to beat... if you are qualified
     
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  13. ACMH16

    ACMH16 Member

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    Not quite.

    They'll currently offer 90% LVR at 4.69% variable. The 3.99% 3 year fixed discount ends today.

    The remaining 10% for their 100% owner occupied option is P+I on a 5 year term at rates over 10% variable with no offset available.
     
  14. Wazza23

    Wazza23 Member

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    I got 90%, no LVI, 4.57% Investment loan, 4.30% owner occupied loan with commbank.

    I think I should be able to do better. I can either refinance and take out a loan with 80% lending, or get a third loan and max it out again.
     
  15. Greyghost

    Greyghost Well-Known Member

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    It's not what it seems.
    It's 90% std rate. Above that it's like 9 or 10% for the balance. Basically a secured personal loan in essence.