DFP recently assisted clients in releasing their equity as cash out to purchase their next investment property.
Our clients owned their Melbourne investment property unencumbered, so when it came to purchasing another, DFP helped to cash out the equity in the property to put it towards the new purchase. This meant our client didn't need to put any of their own money in at settlement time.
Behind the scenes
When our clients discovered their new investment property, they realised it had huge potential but would likely value as uninhabitable and unrentable. In the short term, they wanted to tidy and renovate the property to make it tenant ready, and their long term plan for the site to become a larger development project.
How did DFP help?
DFP were able to offer a short-term solution by providing a mortgage over both the new purchase, which covered the purchase price in full as well as the interest for 12 months and stamp duty.
Once the property has had its minor renovations and is tenanted, DFP can assist in refinancing the combined debt into a traditional home loan product for a longer term solution.
Finance Terms
Finance: 100% of purchase price + capitalised interest + stamp duty
Loan amount: $2,075,000