• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 4 of 4
  1. #1

    Question How to use 1 home for 2 rentals in 1 year?

    Hi everyone.

    I need some help I have been coming up with ideas how to buy rentals quicker but I do not know if my ideas are possible.

    I am 24 years old, I am not trying to get rich quick but I am trying figure out how to do real estate more efficient.

    Is There any financial experts here that could tell me if these ideas are possible?

    Assuming my income is sufficient and repayment criterias are met.


    (I have a house worth 760k and have 500k mortgage with ANZ.
    So I have equity of $108,000. I could buy a rental for $360k. I want to buy a rental for $310K and have $50k sitting in a revolving account for contingency. Assuming i do not draw out any money from the revolving account and waited till I saved $50k in cash. I then draw out all of the 50K from the revolving account (then put the loan on a fixed term) and combine it with my 50K cash, does that mean i can use this 100K cash as a 30% for a 3rd rental?)


    (have a house worth 760k and have 500K mortgage with ANZ. $108,000 equity to be used as a deposit for the first rental of 360K.
    Assuming my home goes up in value to 800k few month down the line and we managed to pay down the mortgage back down to 540K. Does that mean I could further use 100k equity from my home to purchase a 3rd rental?

  2. #2
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,613

    Default

    Talk to a good mortgage broker.

    A lot depends on the cashflow of personal house and the rental too.

    1) if buy for $310k - bank will only lend 70% so $217k. So other $93k comes from personal home equity. Leaving you only $15k equity left. So could ask for $15k revolving credit facility as contingency.

    2) So then if saved $50k, plus the $15k = $65k. If bank allowed could use for deposit on $217k rental.

    3) What happens if your house goes down in value to $700k?

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  3. #3

    Default

    Thank you for your response !
    Now you have worried with your 3rd point !

    so assuming my mortgage has a negative equity would the bank require me to pay a 'lump sum' so there to get the mortgage back at a positive 20% equity immediately ?

  4. #4

    Default

    You may be able to get away with 20% down for rental investment with tier2 lenders (Resimac etc) they'll have higher rates

    I don't know whether this applies to lending for investment

    By the way, you own a house at 24 - that's awesome, well done!


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Renting out my home for a year. Should I put it in a trust?
    By amandalllr in forum Finance, legal and tax (NZ)
    Replies: 19
    Last Post: 04-12-2017, 07:59 PM
  2. Replies: 5
    Last Post: 14-12-2016, 02:01 PM
  3. Spreading mortgages (personal home, rentals etc)
    By wodger in forum Finance, legal and tax (NZ)
    Replies: 15
    Last Post: 28-01-2015, 01:18 PM
  4. Apartment Rentals Surge in U.S. on Home Foreclosures, Job Gains
    By muppet in forum Property Investment (USA)
    Replies: 1
    Last Post: 05-02-2011, 02:43 PM
  5. Rentals: Home and income hiccups
    By muppet in forum Property Investment (NZ)
    Replies: 2
    Last Post: 18-10-2010, 08:32 AM
  6. Leaky shower - nine year old home
    By sparkytheclown in forum Finance, legal and tax (NZ)
    Replies: 3
    Last Post: 09-03-2010, 08:56 AM
  7. Aus: New year 'perfect' time to buy your new home
    By Marc in forum Property Investment (Oz)
    Replies: 1
    Last Post: 08-01-2009, 08:54 AM
  8. U.S new home sales at seven-year low
    By muppet in forum Property Investment (USA)
    Replies: 0
    Last Post: 29-09-2007, 09:49 AM
  9. Home building at 23-year low
    By muppet in forum Property Investment (Oz)
    Replies: 0
    Last Post: 14-09-2007, 08:33 AM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •