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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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  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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  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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  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 Well-Known 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.