SearchEffective leveraging
Nathan asks:
(updated on Friday, March 08th 2019)
I have two investment properties worth $850,000 with a mortgage of $400,000 in New Zealand but I live in Australia. I have been told I can use $70,000 of equity towards my next investment property. Does this sound right or is there a better way to get into my next property?
Our Experts Answer:
It sounds a bit low. You should be able to leverage these to 65% which would release $152,500 or a further $82,500 above what you have been told. If you then used this as a 35% deposit for a new purchase you could buy something up to the value of circa $435,000. Also, note that you may be able to use non-bank options to leverage further than the above numbers suggest as well.
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