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Michael

2 years ago

Good Morning Diane, great question. Quite simply the answer is no you will not need a deposit. What id recommend is to get bank valuations done on your property (free of charge and something I would do). From there I will be in a position to advise how much equity is available to use to fund the deposit and then work out loan amount to fund the rest of the purchase. I am available today for a chat over the phone. Please navigate to my page and request contact. Kind Regards Michael

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Jay

2 years ago

Hi Diane, If your equity in current home works out for both loans to be below 90% LVR [loan to value ratio] including LMI [lenders mortgage insurance premium] we can do it without a deposit, Also, we can offer a special loan product where your owner-occupied home loan interest rate can be reduced close to 2% depending on the amounts of your home loan and investment loan. You need to be an Australian taxpayer to be eligible for this product. Also, you need to keep your HOME LOAN under P&I [principle & interest] and you can also have multiple Offset accounts. This innovative product has been developed for investors to pay off their home loans quicker with some additional tax benefits. Once we have the required information we can send you a report for you to compare the huge benefits in comparison to other conventional loan products. If you would like to know more about it, please get in touch with us via HashChing or our profile. Thanks! Jay

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Kumar

2 years ago

Hi Dianne, Firstly a valuation your current loan balance is needed to work out Equity, we will arrange an automated valuation at no cost to you. Secondly working out how much you can borrow ? you can borrow up to 100 % + based on your equity to purchase the investment property. Give me call to check out the valuation of your place to start the process for a free pre approval

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Melanie

2 years ago

Hi Diane, thank you for your question. It depends how much equity you have in your current property. If you can support a loan against your current property up to 80%, you can take a 'cash out' component which you can use as a deposit to support funds required to buy your investment property. I advise my clients to try not to link the 2 properties together when it comes to borrowing as you may have differing plans for them in the future, for example, to sell one quickly, etc. Please contact me should you require help going forward building your property portfolio! Have a great day.

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Angelo

2 years ago

Hi Diane, Thanks for your question and congrats on deciding to invest in residential property. Fundamentally you would apply for two loans, the first one will be against your home and would consist of "cash out" for investment purposes, usually to avoid lenders mortgage insurance the amount required would be 20% of the purchase price of the investment PLUS Costs IE: stamp duty and legal fees. The second loan goes against the investment at 80% of the purchase price. Subject to equity in your home and you can pass the affordability tests. I'd be more than happy to discuss further I'm based on the Sunshine Coast in QLD if you'd like me to further assist please get in touch with me by visiting my profile. All the very best, Angelo.

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Daniel

2 years ago

Hi Diane - You wont need a deposit if there is sufficient equity in your home. What you will need though is a small amount of money to keep the real estate agent happy - this can also be covered with a deposit bond. Let me know if I can help.

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Allan

2 years ago

maybe a small deposit but if required a deposit bond can usually do. would suggest looking as an area such as Hobart for the investment. often you would be able to purchase 2 properties for the same as one would cost in Sydney or Melbourne while you would receive more than double the rent. good luck

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Sarcia

2 years ago

Hi Diane, sounds like you're setting yourselves up very well. If there is enough equity in your home than you won't require a deposit any deposit If you would like me to run you through scenarios please feel free to get in contact. I also have people in my office who look after investment properties for a lot of my clients, which also get really good reviews from everybody I pass them on to. Good luck. Thanks, Sarcia

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James

2 years ago

Morning Diane, as long as you have equity in your current home it is a simple 3 step process. 1. Get your current property valued and extract equity 2. Use the extracted equity as deposit 3. Obtain borrowing from same or different lender to fund rest of the property purchase Happy to discuss further with you, all the best Diane!

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Guido

2 years ago

Hi Diane, if you have enough equity in your property, you can use part of your equity as deposit for an investment property. Of course, your combined income after expenses plus 80% of the expected investment income must also service the loans. All the best

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Dominic

2 years ago

Depends on how much equity you have!! contact me and I'll sort ya Regards Dom

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Jassie

2 years ago

Hello Diane You dont need deposit as you can use the equity in existing property and borrow 100% for the new property. We have rates starting a 3.78% variable and 3.88% fixed rates for investment property loans. In addition you may qualify for 350,000 reward points.

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Kenneth

2 years ago

Diane, Good morning. As some Brokers have suggested, you will need to cover the Deposit on a the new purchase, some have suggested a Deposit Bond, however we could also look at getting an advance "Cash Out" from your existing property to ensure that you are Deposit Ready for the next purchase. One advantage of doing this is that this portion of your investment could be taken out at Owner Occupied interest rates with some Lenders. I am based in Sydney and if you would like to discuss the best strategies simply call 1300 ASK KEN

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Nadia

2 years ago

Hi Diane, you can obtain a Line of Credit Facility secured against the equity in your home which can be used to pay for the deposit and stamp duty, etc. Then, closer to settlement of the new property, you can obtain an investment loan to fund the balance of the purchase price. These loans can be consolidated after settlement if preferred to save on interest. This is a very common approach which we help a lot of people with. It is simple, straight forward and provides flexibility. We are based in Victoria and can help with planning this out if you need. Nadia.

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Sandeep

2 years ago

Hi Diane, you most certainly can. We can order free valuations with server all banks to determine how much equity you have to access for the investment purchase. In addition we can also obtain the same rate for your owner occupied and new investment propert. Please view my Hasching reviews and Facebook page to see the level of service and outcome I provide.

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LEZLI

2 years ago

Hi Diane. Yes you can - if we refinance both assets together.

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Allan

2 years ago

Hi Diane, as stated above if you have sufficient equity then you can borrow the full purchase price plus costs. However it is likely that you will require some form of holding deposit on the signing of the contract & the remainder of 5% deposit on finance approval. This can be covered off by a deposit bond which replaces the cash deposit and is readily accepted in property transactions. If you are in Victoria, I can explain the whole process in further detail. Feel free to contact via my profile: https://www.hashching.com.au/author/Allan-S1GajYXQfUh6IPCOe6gsYbkKmUyTjigCp_~~_1jbjqu_~_qU= Good luck Allan

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Carolyn

2 years ago

Hi Diane, Yes you can use the invisible equity as your deposit. Selecting the right investment property requires planning . There are positively geared, neutrally geared and negatively geared properties...you need to purchase the right property based on your strategy or reasons you are investing, the length of time you have to pay off if in fact you want to own the property in the end. I can check your borrowing power and then you can decide if you want to contribute any of your money towards the investment which will determine if this is going to be an interest only loan or a principle and interest repayment. If you are purchasing in Queensland then I would be happy to have a chat to explain this for you.

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Chris

2 years ago

HI Diane, form the lending point of view, you can use the equity in your house as security. however when you make an offer or bid at auction you will need to have between 5-10% of the purchase price as available as a holding deposit, you can always get a deposit bond but you need to ask the agents first to confirm if the vendor is prepared to accept either. Please give me call to discuss it in more detail if you like.

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Daxa

2 years ago

Hi Diane, Deposit is initially required but that can be a deposit bond once the loan is conditionally approved. You can then borrow 100% plus costs using the equity of your current home.

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MICHAEL

2 years ago

Hi Diane Thank you for the question If you have enough equity in your existing property to cover the the deposit required for the the purchase of the investment property then simple answer no you do not require a deposit as far as personal savings. However as you will be borrowing the equity and assuming you have a mortgage against your existing property you must be able to service the total debts - that is your existing mortgage + equity release + investment loan Best regards Michael

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Glenn

2 years ago

Good Morning Diane, I hope you're well? You can use the equity in your home for the transaction and it would be better to discuss your options and different structuring to answer your question properly? You may need to pay a deposit if you buy to hold the property during the cooling off period,depending on the vendor or agent? You can use a deposit bond for the 5% or 10% as well. I have years of experience in property investment and structuring loans to the needs of my clients. If you need any further help, please click ob my link and I would be more than happy to assist? Kindest Regards. Glenn Rowan

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Steve

2 years ago

Hi Diane, generally you will need some cash for the initial deposit. Otherwise, as long as you have sufficient equity in your home, good income & meet the lender criteria you should have no issues. If you are in SE Qld, please contact me so I can assist you get your investment property portfolio started - regards Steve

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Xavier

2 years ago

The equity in your home would become the deposit - Be careful how it is structured however so that the properties are not cross-collateralised as this is only a good way to structure things for the bank and never for the investor. We have lots of experience in portfolio building and managing - Happy to help you get the best structure and loan deals if you want to get in touch via my profile https://****/dxxEc9 - chat soon

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Peter

2 years ago

Diane, you may need a holding deposit but generally you can use your equity or a deposit bond. I'd be happy to discuss further with you. Good luck

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