the voigtstr's battle plan

We wanted 95%. ING allowed us 90%

 

Doesn't that mean your up for MI as you are over 80% and will that not eat into your current equity?

 

Yes, but we are controlling sooner, an asset that will go up in value, rather than sitting around saving cash for 3 or 4 years (for a 20% deposit).

 

I know a couple who recently (6 months ago) bought a house in Emu Plains through NAB for $320k or so.. and they only had a 10% deposit, but NAB waived the MI fee? So MI isnt always in concrete it would seem

 

As an update to the battle plan...

We have had an offer on a house worth 270k accepted. We will use our 20k loc + approx 4k of savings to pay the purchase costs... The mortgage on the 270 k will cost us about 1900 per month, the house will rent for 300 p/w. (we are staying put in our villa unit for another 2-3 years)(after that we will rent the two bedroom villa, and live in the 3 bedroom house)

Once the contract settles and we have a tenant in there, I want to build up a bit of a buffer in case the tenants miss rent payments.

After the buffer is there I still have a savings goal to meet (emergency money) and a few small debts to clear.

After that... will be investing in navra + cfs geared share and use the distributions to help towards the negative gearing costs. When we have more distributions coming in than what we are paying in negative gearing its time to look for another IP, (using equity again where possible for the purchase costs).