Agree with Richard – using an appraisal from an REA isn’t that uncommon.

All comes down to the lender/scenario.

Cheers

Jamie

Hiya

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]

Nope.

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:

PPOR
Loan 1: Current mortgage
Loan 2: Equity release to cover 20% deposit and stamp duty on IP

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.

Cheers

Jamie

Hi Matt

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.

Cheers

Jamie

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.

Cheers

Jamie

You could try releasing equity against an Australian owned property – however, the “purpose” of funding an overseas property might not be accepted by some lenders.

Cheers

Jamie

Agree with the guys above – keeping the account active to enable you to reinvest sounds like a good option on the condition that you won’t be tempted to spend the funds for non investment purposes.

Cheers

Jamie

Hiya

Richard above would be a good starting point.

Sounds like you need a decent, IP savvy broker rather than a financial planner.

Cheers

Jamie

+1 for Paul – good guy and very switched on.

Cheers

Jamie

Paul Gerrard
Accounting & Tax Manager
Price Accounting Services Pty Ltd
http://www.pricefinancial.com.au

Unit 11, 1 Central Avenue
Thornleigh NSW 2120
Ph 02 9875-2444 (61-2-98752444)
Fx 02 9481-0594 (61-2-94810594)

Hiya

Probably not with a mainstream lenders unless you are deriving a lot of income from other sources.

Cheers

Jamie

There’s nothing stopping them – but if they do get caught they may be penalised. It’s not common at the moment – but no doubt lenders will become more observant with tracking this into the future.

Cheers

Jamie

Hiya

As a very general rule – valuations for refinancing tend to be on the conservative side. It’s not uncommon for a valuers estimate to be less than the client believes their home to be worth.

On the flipside – it’s not uncommon for purchase valuations to come back at the purchase price. It’s quite rare for them to come in less.

Cheers

Jamie

Hi there

Yep – I’ve done it before.

It was part of our offer. We required access to the property post exchange/pre settlement to carry out some renovations.

Our solicitor put something in writing to the owners solicitor – the owner signed off on it and everyone was happy.

Cheers

Jamie

Doesn’t sound like an independent buyers agent at all.

Sounds like you’re simply dealing with a real estate agent who’s trying to sell you a property.

Cheers

Jamie

Hi there

Which state are you looking to purchase in?

BA fees vary quite a bit – on average I’d budget circa $10k

Cheers

Jamie

I’m biased but I’d have a chat with a good broker who has access to dozens of lenders.

They’ll be able to run the numbers for you.

Cheers

Jamie

Hit up your current lender first and see if they can provide any further discount.

There’s some second/third tier lenders that are reasonably competitive but have terrible borrowing capacity calculators for investors – such as Suncorp, ING etc

Cheers

Jamie

From a lending perspective – you’ll need to use a lender that’s ok with a dual occ construction. Not all are keen on them.

Cheers

Jamie