Hi All
I am hoping to buy a rental property soon. I need to decide on how to structure the mortgage. I would be interested to know your thoughts.
I am looking to buy in Sth Auckland. This is mainly because I only have a 30k deposit. I will probably end up having to borrow slightly over 80%. Kiwibank are willing to do this so thats OK. But its the type of mortgage I'm not sure about.
After buying this 1st property I would like to buy another as soon as is feasible (either a home or a second rental) With this in mind, would it be a good idea to get a mortgage with roughly the amount I would need for my second deposit, as a revolving credit? And the remainder on fixed.
So, after buying the first property, I would throw all my money into this portion of the loan, increasing my equity in order to then take it out a later date.
With regards to the reminder - can I keep this on Interest only?
I have heard of 'split mortgages' but I wasn't sure if this referred to a split btw variable and fixed rates, or to a split between P&I and Interest only.
If you have suggestions on doing things differently I would be welcome to hear.
Thanks!
SwissTony
I am hoping to buy a rental property soon. I need to decide on how to structure the mortgage. I would be interested to know your thoughts.
I am looking to buy in Sth Auckland. This is mainly because I only have a 30k deposit. I will probably end up having to borrow slightly over 80%. Kiwibank are willing to do this so thats OK. But its the type of mortgage I'm not sure about.
After buying this 1st property I would like to buy another as soon as is feasible (either a home or a second rental) With this in mind, would it be a good idea to get a mortgage with roughly the amount I would need for my second deposit, as a revolving credit? And the remainder on fixed.
So, after buying the first property, I would throw all my money into this portion of the loan, increasing my equity in order to then take it out a later date.
With regards to the reminder - can I keep this on Interest only?
I have heard of 'split mortgages' but I wasn't sure if this referred to a split btw variable and fixed rates, or to a split between P&I and Interest only.
If you have suggestions on doing things differently I would be welcome to hear.
Thanks!
SwissTony
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