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Buying investment with cash then using equity to buy first home

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Ktrina Gross | 25 Dec 2014, 10:03 PM Agree 0
I am looking at purchasing a country property (approx $100k) as an investment which my mum will then rent for average rent (approx $8k p/a). I then wish to use equity in this property to purchase my first home as I will not have a cash deposit left. Is this a good idea or even possible? also I was told that I can purchase an investment property then purchase my first home, claiming the first home buyers grant on the second property as this will be the one I live in - is this correct?
or am I better off not purchasing investment and just using 100k as deposit for my home?
  • shane231 | 26 Dec 2014, 09:54 PM Agree 0
    Wonderful idea of buying with cash as the rent of one year complete this investment and further profit help for other projects and paying installment for home. The [url=]custodian wealth builders complaints[/url]"> help in this regard.
  • Paul | 28 Dec 2014, 07:21 PM Agree 0
    That's a terrible idea.
    Use your 100k in your home and then borrow against the equity for your investment.
    Interest on the Borrowings for your home is not tax deductible where interest on borrowings for investment is.
    Get advise.
  • Nick | 29 Dec 2014, 08:23 PM Agree 0
    Hi Ktrina,

    It is best to speak with professionals who provide free advice and offer you a variety of alternatives to the situation, as factors such as your household income etc come into play as factors on which is the best option for you.
    We provide this consultancy service free of charge, from where you can choose the best option for your situation. We can provide a mortgage broking and financing service if you choose our services once you decide your best option.
    Tandem Uehling- Nick- 0411306344.

    Tandem Uehling.
  • ElisaT | 23 Feb 2015, 03:43 PM Agree 0
    I agree with Jdelly87 there is not a problem with purchasing an investment property first but you need to think about how you structure the debt so that you do not cost yourself money.

    Use as little of your savings as possible for the purchase (check the post code and see if there are any lending restrictions) so that you can owner occupied debt as possible.

    It is usually best to speak to an Accountant if you unsure of the tax implications of your strategy.

    Best of luck!
    Awesome Lending Solutions
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