Hi all,
Just want to get your thoughts on this matter.
Currently, partner and I have residential property in Auckland bought in 2010. Afterwards, used its equity to buy outside Auckland in 2015. Both Properties under ANZ, cross collateralised.
Major change is gonna happen to our family.
1. Family will be moving out of Auckland (have had enough of the traffic, congestion) by January. Partner has found a job in Levin. My mother (bless her) asked us to stay with her. She has a separate house which we can live for as long as we want rent-free.
2. Property in Auckland will be rented out by January. Currently, all properties are in ANZ fixed for two years. Residential prop is at LVR 50% and IP at 80%. But these are cross-collateralised so roughly LVR at 70%.
I have few concerns, please do enlighten me:
1. Will our residential property now be under 40% required IP deposit by the bank?
2. What's the consequence (from a bank's POV) of not letting them know our Auckland property will be rented out? Should we even let the bank know about this change in situation?
3. Technically speaking, we won't have any residential property by January, only 2 IPs, if we decide to purchase a house, will this be on a 20% required deposit? Or can we still have the Auckland property as 20% and the new house as 40%? Reason being, there's more equity in AKL property which we can use to buy another property.
4. What are the ways I can get away from cross-collateralising my current 2 properties?
Our goal: We want to buy more IPs in the future enough to fill our passive income goal.
Cheers
Just want to get your thoughts on this matter.
Currently, partner and I have residential property in Auckland bought in 2010. Afterwards, used its equity to buy outside Auckland in 2015. Both Properties under ANZ, cross collateralised.
Major change is gonna happen to our family.
1. Family will be moving out of Auckland (have had enough of the traffic, congestion) by January. Partner has found a job in Levin. My mother (bless her) asked us to stay with her. She has a separate house which we can live for as long as we want rent-free.
2. Property in Auckland will be rented out by January. Currently, all properties are in ANZ fixed for two years. Residential prop is at LVR 50% and IP at 80%. But these are cross-collateralised so roughly LVR at 70%.
I have few concerns, please do enlighten me:
1. Will our residential property now be under 40% required IP deposit by the bank?
2. What's the consequence (from a bank's POV) of not letting them know our Auckland property will be rented out? Should we even let the bank know about this change in situation?
3. Technically speaking, we won't have any residential property by January, only 2 IPs, if we decide to purchase a house, will this be on a 20% required deposit? Or can we still have the Auckland property as 20% and the new house as 40%? Reason being, there's more equity in AKL property which we can use to buy another property.
4. What are the ways I can get away from cross-collateralising my current 2 properties?
Our goal: We want to buy more IPs in the future enough to fill our passive income goal.
Cheers
Comment