thanks for sharing this great and informative video. lets say ''optimistically speaking'' if i wasn't concerned about the risks because im confident i can make the repayments ,is there any other reasons why it's not a good idea to stick with one bank for both properties? or is there any other benefit to separating them into 2 banks ?
As far as I can tell, no. The new 150 is a separate loan facility. Only after you use that 150, it will be charged interest on it. Think of it like a Off-set account but separately accounted for interest (for tax purposes).
I am in a situation whereby I have clear title on a house in the city, my first home and currently rented out. I live in a second house that I owe 175k on. The estimated value of the two properties is ~2.3million. I have an income of ~250k p.a including the rental income. I want to buy a new house for my primary residence for 1.2million, thus renting out the current home. So 2x rental income stream and my salary will combine for ~300k p.a. I feel as though I should be able to purchase the new home as I have so much equity and solid income, however I find my max borrowing to be around 870k and the broker suggest I need to sell a property in order to fund the purchase. Thoughts?
@@merkel2750 well you know, I didn't get gifted any of it so I'm not going to let you shame me for participating in the rat race and trying to ensure when I die my kids have half a chance to NOT participate in the rat race. As it happens I pay around 100k in income tax per year, and unlike some I am happy that my labour is financing programs such as welfare for those who struggle. I was in that spot for a while myself. So yeah, the system ain't great but unless you want socialism and universal basic income and to be sucking at the teat of government at the expense of what's left of your freedom I reckon just saddle up and have a go. If you DO want those things then yeah I guess we are just different.
I have a question, what if you own your property already, if there’s no mortgage, then you have 100% equity on the home you own If you own the home worth 450k, but you want to own an investment property worth 300k, then your equity covers the cost right?
yes, and new property will ´ clean ´ with no loan. So than you can buy another property, if you have income. Income also makes new property if you rent it.
Thanks Khalid. Yes you can use the same lender as your home. The main key is to ensure you have a separate lender for the investment. If you need any assistance with this, feel free to reach out and our team would be more than happy to assist. info@reventon.com.au or 1300 039 376.
I want to use my equity for investment property. I asked bank to increase my loan and give it to me so i can go to another bank avoid cross colatralise and bjy property . They said they cant increase until you can service another property . Sobasically i cant borrow until my borrowing capacity is more . How to deal with this situation
You need to be more precise....what exactly do you mean by an *equity release “? What type loan is that you’re referring.....equity line of credit or straight standard cash-out refinance? You prob not on the US from sounds of these jargons.
Nice, easy to understand and straight to the point video. Thanks.
thanks for sharing this great and informative video. lets say ''optimistically speaking'' if i wasn't concerned about the risks because im confident i can make the repayments ,is there any other reasons why it's not a good idea to stick with one bank for both properties? or is there any other benefit to separating them into 2 banks ?
Does your first homes repayments go up because you used 150 equity?
As far as I can tell, no. The new 150 is a separate loan facility. Only after you use that 150, it will be charged interest on it. Think of it like a Off-set account but separately accounted for interest (for tax purposes).
Thanks for sharing
I am in a situation whereby I have clear title on a house in the city, my first home and currently rented out. I live in a second house that I owe 175k on. The estimated value of the two properties is ~2.3million. I have an income of ~250k p.a including the rental income. I want to buy a new house for my primary residence for 1.2million, thus renting out the current home. So 2x rental income stream and my salary will combine for ~300k p.a. I feel as though I should be able to purchase the new home as I have so much equity and solid income, however I find my max borrowing to be around 870k and the broker suggest I need to sell a property in order to fund the purchase. Thoughts?
Thoughts? You’re the reason families are living in tents, good job.
@@merkel2750 well you know, I didn't get gifted any of it so I'm not going to let you shame me for participating in the rat race and trying to ensure when I die my kids have half a chance to NOT participate in the rat race. As it happens I pay around 100k in income tax per year, and unlike some I am happy that my labour is financing programs such as welfare for those who struggle. I was in that spot for a while myself. So yeah, the system ain't great but unless you want socialism and universal basic income and to be sucking at the teat of government at the expense of what's left of your freedom I reckon just saddle up and have a go. If you DO want those things then yeah I guess we are just different.
I have a question, what if you own your property already, if there’s no mortgage, then you have 100% equity on the home you own
If you own the home worth 450k, but you want to own an investment property worth 300k, then your equity covers the cost right?
yes, and new property will ´ clean ´ with no loan. So than you can buy another property, if you have income. Income also makes new property if you rent it.
Hi, awesome video thankyou - one question: Who do you get the equity release loan through? CBA or another bank? Or it doesn't matter?
Thanks Khalid. Yes you can use the same lender as your home. The main key is to ensure you have a separate lender for the investment. If you need any assistance with this, feel free to reach out and our team would be more than happy to assist. info@reventon.com.au or 1300 039 376.
Can I use my parent's house equity to buy a property ?
Sure, if they let you.
Alba Vista
I want to use my equity for investment property. I asked bank to increase my loan and give it to me so i can go to another bank avoid cross colatralise and bjy property . They said they cant increase until you can service another property . Sobasically i cant borrow until my borrowing capacity is more . How to deal with this situation
Hi, please get in touch with us on 1300 039 376 and one of our mortgage brokers can look at your financial circumstances and advice accordingly.
You need to be more precise....what exactly do you mean by an *equity release “? What type loan is that you’re referring.....equity line of credit or straight standard cash-out refinance?
You prob not on the US from sounds of these jargons.
Americans are stupid go away