Hi All,
I am a little confused as to the best way to access the equity in a PPOR to purchase an IP. Our PPOR has an LVR of 60% making 120k of equity available. We can make repayments on a mortgage that is upto 100k higher than our existing mortgage . Assuming I have found a CF +ve property when 80% financed and priced around 250k, near to where I live in Auckland (The only area i know well).
What is the best way to access that equity?
Do you increase the existing mortgage on the PPOR to obtain the 20% deposit required, and have a mortgage on the IP of 80%? Or, do you arrrange 100% finance for the IP and use the equity in existing PPOR as security? Or is there perhapes another way that Im not aware of?
Im sure this has been asked before, Ive looked for an existing thread that discusses this but may have missed it, can someone post a link if they locate one.
I know that it would be better to locate a CF+ve property when 100% financed but i dont seem to have the network, skills, or knack for doing that yet. I keep thinking of the opportunity cost of waiting for the 'perfect' deal.
-Paul
I am a little confused as to the best way to access the equity in a PPOR to purchase an IP. Our PPOR has an LVR of 60% making 120k of equity available. We can make repayments on a mortgage that is upto 100k higher than our existing mortgage . Assuming I have found a CF +ve property when 80% financed and priced around 250k, near to where I live in Auckland (The only area i know well).
What is the best way to access that equity?
Do you increase the existing mortgage on the PPOR to obtain the 20% deposit required, and have a mortgage on the IP of 80%? Or, do you arrrange 100% finance for the IP and use the equity in existing PPOR as security? Or is there perhapes another way that Im not aware of?
Im sure this has been asked before, Ive looked for an existing thread that discusses this but may have missed it, can someone post a link if they locate one.
I know that it would be better to locate a CF+ve property when 100% financed but i dont seem to have the network, skills, or knack for doing that yet. I keep thinking of the opportunity cost of waiting for the 'perfect' deal.
-Paul
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