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  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


    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?

    Not sure where to start, book a free chat for 5-10 minutes https://cswaikato.co.nz/services-pro...s-hamilton/201
    Ross Barnett - Coombe Smith Property Accountants

  3. #3


    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


    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!


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