Forum Replies Created
Retail value of remaining prop is 360k with bank valuation of 330k.
The bank will generally want to keep LVR at 80% – so if remaining property has been valued by them at $330k then remaining loan should be $264k. So if it was $500k initially – then you’d probably need to pay $236k…..so not sure why they’re asking you to pay $340k unless the property is in a high risk postcode with a restricted LVR
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I am undecided on this as I see benefit in both, however, I am leaning towards the benefit / immediate gains of having the $ to reno etc outweighing the very minor difference in repayments on IO?
It depends on what you’re aiming to achieve.
I work mainly with investors – and a lot of them (particularly those starting out) leverage at 88% + LMI. The LMI is deductible and they can borrow more with less which enables them to be more aggressive with property acquisition.
If you’re looking to hold onto cash for renos – then work out what the end value will be after the renos. That will help work out whether the LMI cost is justified.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi guys,Can anyone recommend a property lawyer/solicitor based in Sydney?Cheers,Gavin
Hi Gavin
What sort of work do you need? Is it conveyancing or something more complicated?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Look to go back to your current lender and do an equity loan.
Agreed.
Your existing lender should be your first point of contact – look at ordering an upfront valuation first so you can determine how much equity there is to access.
If the valuation comes in low then consider ordering another via a different lender- in the hope of getting a more favorable result.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Are all banks now assessing servicing around the 7.50 per cent? Do they provide flexibility if your fixing in your loan say for 3 or 5 years?
No – there’s a few still with generous borrowing calcs. Not sure how long they’ll last for though.
Just need to start looking outside of the mainstream.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
What sort of default was it?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You’re banker doesn’t have a clue :-(
Speak with an accountant rather than a banker on taxation matters. The banker isn’t going to help you when the ATO come knocking.
What they’ve suggested you can do is incorrect.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I do not know much about investment properties and I thought if I could somehow get another mortgage on the house and turn it into our investment property it would make a good investment. My husband however says that we can’t do this because our house is mortgage free.
Your husband is spot on.
You can’t take out an investment loan against the property now – unless you use the funds from the loan to actually invest. Only other thing I can think of is a possible spousal transfer but that’s likely to come at a cost.
However – you can access equity in the property to fund the deposit/costs on a new home in your new location.
All in all – you might be able to purchase another home BUT it’s unlikely you’ll be able to obtain any interest deductions on your current investment property.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Whoa – that’s crazy!
Although – I’ve got an IP in Canberra where rates are circa $3k p.a and land tax is around $5k
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
AirBnB can work out well.
Only problem is that banks won’t take into account the income generated from an Air BnB property unless you can show a year or two of tax returns. With a normal rental – they only need to see the most recent rental statement or a rental appraisal from a local property manager.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I’m not a fan of OTP at all.
You generally pay a premium – and have to keep your fingers crossed that the valuation will actually match the purchase price upon completion.
I can’t speak for the Perth market – I haven’t seen a great deal of OTP from the west coast. However – Melb OTP gave us headaches in 2016. Had a few valuations come in much lower than purchase price :-( We were able to implement a Plan B on each occasion but it was quite a stressful time for all involved.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There’s nothing wrong with buying in a lower socio economic area providing you’ve calculated the risks involved – and not all socioeconomic areas are the same either!
Generally speaking – if you can land an IP in an area that’s prime for gentrification then you can experience some decent growth. Same deal with some fringe areas of capital cities. Look at West Syd for example – detached houses were selling for low $200’s not that long ago…that’s no longer the case!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Nice post!
We’ve got a few property related links on our website – not sure if they’ve all been covered above.
Link is here- http://www.passgo.com.au/property-data-websites
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Woodlin
Welcome aboard :-)
How are you calculating the equity that you have available?
Generally speaking – when accessing equity we set up a second loan account with redraw. The surplus funds are then dropped into that redraw account at settlement to be used to cover the deposit/costs on your future IP. The benefit of this approach is that interest won’t be payable until you actually spend the money.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
New to property investing and would appreciate any recommendations for a financial planner in Victoria…preferably Mornington Peninsula area. I’m 54 and my partner 50, both employed and with a decent amount of equity in our home and keen to enter the PI market…
Hiya Lisa
Do you need a financial planner or an investment savvy mortgage broker? To me – it sounds like the latter is required.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Staging works wonders for the right property.
Some basic cosmetic renos – paint, new flooring, etc can also help.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Based in Canberra and Sunshine Coast.
Service clients nationally.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I guess it was just a matter of time :-(
Looks like they won’t honour pre-approvals under the old servicing calc for very long either.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Bunnings voucher – they might spend it on improving your place :-)
Movie tickets are always nice.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Agree with Corey – changing ownership can be costly. Speak with a decent accountant and crunch the numbers to see if it’s worth the costs.
Joint ownership with a non-spouse can cause huge headaches for serviceability :-(
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
