Should/Can I buy a second IP?

Discussion in 'Loans & Mortgage Brokers' started by Wazza23, 31st Jan, 2016.

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  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
     
    Wazza23, 31st Jan, 2016
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus 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
    Jess Peletier, 31st Jan, 2016
    #2
  3. Wazza23

    Wazza23 Member

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    That shouldn't be an issue.
     
    Wazza23, 31st Jan, 2016
    #3
  4. bob shovel

    bob shovel Well-Known Member

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    Let's go shopping then!
     
    bob shovel, 31st Jan, 2016
    #4
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus 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?
     
    Jess Peletier, 31st Jan, 2016
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Should and could are different things

    Ta

    Rolf
     
    Rolf Latham, 31st Jan, 2016
    #6
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  7. Greyghost

    Greyghost Well-Known Member

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    OP said savings are $120k
     
    Greyghost, 31st Jan, 2016
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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.
     
    Wazza23, 31st Jan, 2016
    #8
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  9. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Ha - read OP too quickly :)
    Right! What do you do for work?
     
    Jess Peletier, 31st Jan, 2016
    #9
  10. Wazza23

    Wazza23 Member

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    Medical field.

    So how will the loan structure work with a 3rd property?
     
    Wazza23, 31st Jan, 2016
    #10
  11. HUGH72

    HUGH72 Well-Known Member

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    Is that you Bob? Dissociative identity disorder?
     
    HUGH72, 31st Jan, 2016
    #11
  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
     
    God_of_money, 31st Jan, 2016
    #12
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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.
     
    ACMH16, 31st Jan, 2016
    #13
  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.
     
    Wazza23, 31st Jan, 2016
    #14
  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.
     
    Greyghost, 31st Jan, 2016
    #15
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