标题: how to buy 2nd property by using the first one as security? [打印本页] 作者: amykaio 时间: 2020-8-20 13:39:56 标题: how to buy 2nd property by using the first one as security?
we have only enough money to buy a first home in a not very good reputation town, like 30mins drive to work, that's why the property is cheap to buy. Rental market is looking good in long term.
We want to live there for a couple of years, save up, then rent out the first one (likely to achieve positive cash flow), and buy the 2nd one that suits us more.
Question:
1. Do we still need 20% deposit to buy the 2nd one?
2. Having the first one with positive cash income, does that help or not? Will that bring down the deposit requirement or add some credit to our application somehow?
Pls advise. Thank you.
作者: salesonline 时间: 2020-8-20 13:54:49
I don't know, but if you post it in the FML section, you will get reply really quickly.
作者: 还是回国吧 时间: 2020-8-20 14:11:54
You'll probably need more than 20% if the second property is considered an investment property. The rental income from the first property will help in some way.
Of course, the bank will look at your overall ability to service the mortgage, so the details doesn't really matter, the bank will tell you how much a property you can afford to buy.作者: paulwood 时间: 2020-8-20 14:21:52
Talk to your broker is the best and fast solution. 作者: moonIlight2013 时间: 2020-8-20 14:29:18
1> You need at least 30% of deposit to buy the 2nd property.
2>Depending on your income and how much you have borrowed from the bank for your 1st property, the bank will let you how much you can borrow for the 2nd property.
For example, your total loan credit is 1 million. You first loan used half million. You want to buy another property worth of 1 million. So, 0.3 million deposit + 0.5 million loan. You still have 0.2 million shortage. I am not sure how can you convince the bank to give you extra 0.2 million? 作者: DDD888 时间: 2020-8-20 14:39:27
1. renovating your 1st property and get valuer to assess new value
2. go to bank to chat with your new valuation report and your income details
3. then bank will tell you how much you can borrow and you should be able to buy your 2nd property
