Info on guarantor
- Thread starter Brian84
- Start date
You don't have to. Some people prefer to get their guarantor off ASAP however, using the cash they would otherwise use as a deposit, to pay down the LVR and release the guarantor security.
If you've got equity in your current property, the guarantee would make this difficult to access. Best to remove the guarantee and see where that takes you.
Ah, this is further digging the hole then. Best practice to remove the guarantor and see what's possible from there. Do you know what LVR you will have with the guarantee removed?
Existing loan balance and estimate of property value?
If you have a LVR sub 90% you can remove the guarantor through a simple refinance + pay LMI. If you're at a situation where the property is at 80%, you can then setup an increase to draw the total LVR up to 90% again - which may provide sufficient funds for a deposit.
If you have a LVR sub 90% you can remove the guarantor through a simple refinance + pay LMI. If you're at a situation where the property is at 80%, you can then setup an increase to draw the total LVR up to 90% again - which may provide sufficient funds for a deposit.
That shouldn't be an issue based on those figures.
Based on a 630k valuation you could remove the guarantee as well as access circa $76,000 in equity, bringing the LVR up to 80% LVR. If you entered into LMI territory you could make available equity funds of $139,000.
My goal in 10 years is to have between 10-20 positive cash flow properties with also growth.
Retire/semi retire by the age of 40 (I am 30 now)
Having financial freedom.
Some people say its a bit ambitious but I say it's not impossible and believe I can do it.
DT- I'm not going to purchase in Sydney as its to over priced now being near the top end of the market. My areas would be as follows in order preference.
Central coast of nsw
Newcastle in nsw
Wollongong in nsw
Areas of Logan in qld (although I haven't looked to much into this town yet)
Retire/semi retire by the age of 40 (I am 30 now)
Having financial freedom.
Some people say its a bit ambitious but I say it's not impossible and believe I can do it.
DT- I'm not going to purchase in Sydney as its to over priced now being near the top end of the market. My areas would be as follows in order preference.
Central coast of nsw
Newcastle in nsw
Wollongong in nsw
Areas of Logan in qld (although I haven't looked to much into this town yet)
Definitely possible to get started on your investment portfolio buying in those areas with the equity you have available, if you utilise LMI effectively you would be able to squeeze 2-4 purchases. There appears to be a lot of re-surging interest coming into Newcastle as of late, which may be a follow on from the Sydney market moving so strongly in recent times.
I certainly do know investors who buy along Central Coast - nowhere near to the same volumes as the capital cities, but they still exist.
I certainly do know investors who buy along Central Coast - nowhere near to the same volumes as the capital cities, but they still exist.
I'm getting more and more applications for purchases in Newcastle - perhaps there's a bias given geographical proximity, but definitely noticed a pickup there.
Same reasons as you suggested Brian - Sydney overheat/ripple moving outwards. Region in between is quite popular too.
Obviously, my sample size is way to small to make meaningful judgements from though.
Cheers,
Redom
Don't think its too ambitious at all, I think aiming big is pretty important to succeed - with a well mapped out plan, some hard work, avoiding bad luck, that's definitely achievable over a 10 year horizon.
