Hi!
I have 3 IPs and a mortgage broker who does all the sums….wondering how often members revalue your properties to borrow against increased equity? How much increase do you find is needed to purchase more property? I’m really awful with the maths!Dani67
Dani,
I’d suggest you have a meeting with your broker and find out the requirements of your bank in relation to LVR adn DSR levels. Until you know what levels they expect you won’t know if “any figures you work out” will fit their requirements.
Secondly, if you go through one bank and you want to revalue then find out which valuers your bank accepts valuations from, it’s pointless getting a high valuation from a valuer they just won’t look at. Your broker should be able to tell you who they are.
I only revalue when I think a property has increased enough ie: from watching the genenral market I think the value should be there.
Regards
PKThanks for your advice, PK.
Dani
I only revalue my properties when I am comfortable in borrowing more money to ivest.
No good having access to more money but not being able to meet the interest payments.
Dani,
If you have 3 IP’s, you probably know a little about what you’re doing. Thing is, you can borrow to but CF+ props no problems at all, because it will repay itself. Anything other than that, and it doesn’t matter how much equity (via a reval)you have, you’ll still have to find the money to repay a mortgage. This can be done through a pay rise or a lotto win. Or you can do a reno to make the place achieve more rent :o)
kay henry
If you have equity available can you use it or do you have to still satisfy the bank as far as servisability.
This should be a smart sounding comment but it isn’t!
Mike, you still need to be able to service the loan (and ask what you like in here. As for me, if I understand the question, I’ll answer it. If not, I let the smarter ones do it! :o))
A pensioner with a multimilion dolar mansion in sydney is not going to be able to use his or her equity to buy another place. Well, perhaps an unscrupulous lender might let her, but sheesh! It’s all about being able to pay back the loan. That’s why people who have multiple properties like Brenda Irwin and her hubby (profiled again in last month’s API mag) have had to sell up properties to be able to borrow more. Her hubby also had to keep his job to be able to qualify for loans.
This ain’t an easy game. And I am NOT being negative or a naysayer, for those who think we should tell everyone the only thing stopping them is their mind. Reality is, generally, you have to have a job and increasing levels of money to service loans or you can get into trouble.
And Brenda and Les’s props were all CF+ ones too.
kay henry
Originally posted by mikeej:If you have equity available can you use it or do you have to still satisfy the bank as far as servisability.
Agree, and also, if your +ve cashflow properties can generate enough cashflow to service another possible loan, even when your out of a job and no income, you can still purchase more properties..
.. though dependant on who and what your lenders criteria is..
Cheers,
sis
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