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best ways to buy second home

Discussion in 'General Investing Discussion' started by taurus 64, 23rd Aug, 2011.

  1. taurus 64

    taurus 64 New Member

    23rd Aug, 2011
    Hi guys,
    Bought PPOR 3 years ago with FHOG. Moved out 18 months later and turned PPOR into IP that family members are now renting.
    Boyfriend and I are now renting and looking to buy a house together in the next few months.
    I originaly paid 17k extra on first mort with the idea of redrawing to purchase property with boyfriend. I now know that has serious tax implications on IP and now cannot redraw these funds.
    boyfriend and I looking at property around 280k and he has 10k in savings. Boyfriend and I not eligable for any FHOGs.
    How to buy 2nd property with little deposit?
    How to avoid LMI again?
    Do I start paying minium payment off IP and save the extra money?
    Any ideas thanks
    Taurus 64
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    If you have equity in the existing home you would generally set up a second loan split on that and then use this as the deposit for the new one with the remainder coming from a new loan.