Purchased first home - where to go from here?

[Envesty]

Hi all,

My sales and purchase agreement is going unconditional today.

My loan structure as follows:

Fixed for 3 years at 5.79%

Loaned amount of $351k

Fortnightly repayments of $950

If my goal is to buy another property using this first home as equity how long do i have to wait?

Is it smart to make the repayment in weekly and up the repayments by $50 making it $1,000 fortnight ($500 weekly)? will this help if i approach the banks for 2nd mortgage?

[elguapo]

If my goal is to buy another property using this first home as equity how long do i have to wait?

Wait until your equity in the property is sufficient to do so.

Is it smart to make the repayment in weekly and up the repayments by $50 making it $1,000 fortnight ($500 weekly)? will this help if i approach the banks for 2nd mortgage?

There is no advantage to weekly payments. The advantage of fortnightly payments is the extra two payments made compared to monthly, i.e. 26 payments rather than 12. If you wish to build equity then, yes, increasing capital repayments will assist.

[Lovethiscountry]

To buy your second property you need to have sufficient equity in both properties to meet the banks 80% lending requirements and be able to show that you can service the loans.

Have a look at some of the other posts. Banks only consider 75% of your earnings after all expenses, and work it out including principle repayments, for serviceability.

Paying down your loan at $500pw is going to get you there a little faster.

When you mention 2nd mortgage I assume you mean when you borrow against both properties for your next purchase.

Keep investing

[jimO]

my first house cost $19ooo

[BigDreamer]

Great deal on the 5.79% for 3 years. Which lender did you engage?

[aay]

Great rate! I could only get 5.99% 3-years last month via BNZ. Pay down as much principle as you can, do that for a year. Then see what house prices are at then, revalue your home (if you think value has gone up), and see how much equity you've got and get a pre-approval for your next home.

[Wayne]

If my goal is to buy another property using this first home as equity how long do i have to wait?

The simple answer is - when you have enough capital and income to prove to the bank you can afford it.
There is no set time!

[Envesty]

Great deal on the 5.79% for 3 years. Which lender did you engage?

So sorry its 5.79% for 2 years.

I think after 2 years times we will be in the 6-7%