Hit your current lender up for a lower rate
Most lenders differentiate between owner occ and investment.
With some lenders it’s a straight forward process – with others it can be more difficult.
Sounds like you’ve got the correct structure in mind.
The loans don’t have to be via two different lenders – you can have the two loans (equity release and IP) with the one lender and still keep the loans uncrossed. The benefit here is that you’ll be able to negotiate a better rate discount due to the higher aggregate borrowings. If you’re on a…[Read more]
Keep the house uncluttered and well presented for when the valuer arrives.
If you’ve got strong, recent, comparable sales – have those available to show the valuer.
In terms of best bang for your buck – usually painting/flooring is the cheapest value add.
Jamie Moore replied to the topic Finding the market value of a property before and after renovating in the forum General Property 6 months ago
You’ve got a couple of options.
As above – you could engage an REA and get their opinion.
Otherwise – you could get a valuation done now and another done after the work is complete.
Jamie Moore replied to the topic Live in a great investment that was our first home. in the forum Help Needed! 6 months ago
Which suburb is the property in? I have one in Downer that’s near a future light rail stop. The recent growth in the area has been quite good!
Whether another purchase is doable depends on your borrowing capacity. On the surface – it looks like you have enough equity to support a second purchase so it will just come down to your…[Read more]
Jamie Moore replied to the topic How do you rate your experience with Property Managers in the forum Help Needed! 6 months ago
I’d only ever use a property manager for looking after my IPs – I don’t have the time/patience/expertise to deal with them.
Having said that – finding a good property manager isn’t always easy :-( I’ve had some shockers, some great ones and everything in between.
Jamie Moore replied to the topic Possible to get into property with little yearly earnings & savings in the forum Help Needed! 6 months ago
Realistically – you’ll need to bolster that income. Whilst technically it’s probably possible to purchase something (providing you live rent free, have no debts, minimum living expenses and a deposit) – that property will prob be in an undesirable area with little prospects for growth.
I’d focus on the income side of things before…[Read more]
Chance are that REA is affiliated with the company they recommended.
Personally – I like to minimise conflicts of interest so I’d appoint my own MB rather than go with the one the REA is recommending.
If you have no intention of purchasing an owner occ in the future – and if cashflow enables it then I’d consider going down the P&I path.
With the rate difference between P&I and IO widening these days – you’ll probably find that the monthly repayments aren’t going to be drastically different (depending on how long your previous IO term ran…[Read more]
Best to keep the loans uncrossed.
It’s easy to do. Assuming you have one PPOR and are looking to purchase one IP. The structure is pretty much:
Loan 1: Current mortgage
Loan 2: Equity release to cover 20% deposit and stamp duty on IP
Loan 3: Investment loan to cover remaining 80% against IP (deposit comes from loan 2…[Read more]
What sort of investment income is it James?
If it’s dividends – and if you can demonstrate some consistency in terms of the duration you’ve held the shares, etc then you can use that income for servicing.
However – not having earnings from s/e or PAYG sources will likely cause headaches unless your investment income is high.
Are you looking to do an equity release for $200k at 87% ?
If so – that’s not an easy deal to get approved!
Banks aren’t overly keen on large cashouts above 80% LVR these days. If you’re going above 80% you’ll most likely need to have evidence of what that $200k is being used for.
Contract employment is quite common – and certainly doesn’t preclude you from borrowing.
Factors that come into play are the size of your deposit, the length of time you’ve been in the industry you currently work in and the duration of your contract.
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