Hi everyone,
Here is out current situation:
My wife and I live in a rental on the Gold Coast, paying $450/week. We have an investment unit also on the coast, with monthly repayments of $1200, and monthly income of $1100. We bought the unit in 2007 for $270,000, and it is now currently worth around $230,000. We owe $236,000. We are stuck with a high interest rate home loan (6.21%) paying interest only. We have tried to get a lower rate loan, but as soon as the banks do the rough evaluation (without physically entering the property) they say that they can’t take us on as we don’t have any equity. I have even told the bank that I am with that I want a better rate, they said that I would have to refinance (I’m thinking that means an evaluation) and that they would call me back. That hasn’t happened yet. I am yet to chase them up again.
We have savings of $30,000. And we will have another $30,000 saved by the end of the year. I don’t really want to put any savings into the investment unit, as I want to use the funds for a renovation project. As I am a tradesman, I feel that a renovation is a sensible way for me to create equity. I am looking at buying soon, renting it out for a year while I continue to save, then do the Reno and either sell it after I’ve had it at least a year, or keep it and use the equity (if I create some!)
So this leads me to a pile of questions, here are just a few:
1. Without me paying down my existing loan, is there any way I can find a cheaper rate?
2. If I were to ultimately sell the Reno project, would it be more sensible for me to buy now and sell after a year, or buy next year, work on it over a few months, then sell?
3. Can you recommend any good buyers agents? What is their pricing scheme?
4. Which areas in SE Qld do you think would be of good investment value, with high rental yield and potential for growth?Thanks guys
Hi Mikko
Welcome to the forum and I hope you enjoy your time with us.
Often the case that once a lender holds the security property they won’t want to do a full valuation and work off a driveby, desptop or similar.
One solution is to get your broker to look to refinance the deal and instruct a full valuation.
Once the report is back your broker can work out the lvr available without even submitting a deal.
No idea who your current lender is but certainly refinancing would make sense at that rate.
With more information i can advise you further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for taking the time to read and reply Richard. The bank is ‘Pepper Home Loans’ which was previously ‘Anchorage’ which was previously ‘RHG’ which was previously ‘Rams’. That alone just spells shonky to me.
I will give them another call and demand that they investigate a refinancing situation for me.
Do you recommend any good buyers agents, in order to help me potentially find a property under market value?Hi Mikko,
My name is Ben Everingham and I am an investor based in QLD who has bought 6 properties in the last 4 years. I also own a buyers agency called Pumped On Property. I would be happy to offer you a Free one hour Strategy Session to look at each of your questions in detail http://www.pumpedonproperty.com/free-strategy-session/.
1. Without me paying down my existing loan, is there any way I can find a cheaper rate?
– I have a great Mortgage Broker who would be happy to take a look at it for you.
2. If I were to ultimately sell the Reno project, would it be more sensible for me to buy now and sell after a year, or buy next year, work on it over a few months, then sell?
– As you are aware you will save on your Captial Gains Tax if you hold the property for a year. This said your holding costs also accumulate.
3. Can you recommend any good buyers agents? What is their pricing scheme?
– http://www.pumpedonproperty.com
4. Which areas in SE Qld do you think would be of good investment value, with high rental yield and potential for growth?
– Inala, Acacia Ridge, Kallangur, Mountain CreekThanks.
I spoke to Pepper Home Loans and they said they would drop my rate from 6.21% to 6.09%. As I’ve got zero equity in the property, I have to take it on the chin I guess, until I have the leverage to change banks.Hi Mikko
I would be happy to order a full valuation for you if you wanted to email me some details.
Once we get the valuation report back we can certainly see how much equity you have in the property and look at the various refinancing options for you.
Also as a Buyer Agents we can certainly assist in sourcing a property for you when the time is right.
Both myself and my partner personally own over 50 properties between us so have plenty of experience in the field.
Shoot me an email and we can see what we can do for you.
Cheers
Yours in Finance
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This reply was modified 9 years, 2 months ago by
Richard Taylor.
Richard Taylor | Australia's leading private lender
Pepper is a niche lender – is there a reason you went with them to begin with?
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Thanks for the responses guys. Richard I will send you an email. Kinnon, as I mentioned in an earlier message on this thread, I was initially with Rams, then it became RHG, then it became Anchorage, then it became Pepper. I have never held any equity in the property as I bought at the peak before the GFC, and have therefore found it difficult to move to a new lender.
Apologies Mikko, missed it earlier in the thread where you stated that.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
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This reply was modified 9 years, 2 months ago by
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