[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

June 8, 2016 - 9:45 pm

Thankyou so much everyone :)

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

June 8, 2016 - 8:50 pm

Thankyou so much for your responses. I feel confident now, but Corey – would this transition to YBR likely have any impact to the borrower?

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

March 29, 2016 - 11:25 pm

I am no professional in fact I have yet to purchase an IP. However, it occurred to me….

I was under the impression that CBD apartments were high in yield but low in capital growth and hard to resell??? But 10% historic growth sounds pretty good, if that is what you mean by profit record.

Also I know that apartments under, I think 50 sqm, are hard to get finance for, and most banks require 50% deposit.

Possible this info I have is out of date/no longer relevant but perhaps worth researching?

I did look into city apartments some years ago and that is what the bank wanted. (Honestly I wish I bought it anyhow because I still don’t have any investments, but that will change within the next 3 months.)

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

March 29, 2016 - 2:25 pm

Sounds sensible :) Thank-you for your perspective :)

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

February 18, 2016 - 7:21 pm

Thank you so much Terry.

Is it a fair assumption that if I am approved for a certain amount, but my house plus the reno amount is that approved amount, then it would be fine? (EG approved for $400k but buy $350K IP and $50K for the reno for sake of argument). Or impossible to say?

Would I be able to combine my equity loan for the deposit and the LOC for the reno together in an IO loan once it is all said and done?

Using a LOC do I need to prove my spendings? eg do I need tradespeople quotes and adverts of the tiles I plan to buy etc? Or show them my receipts? Do I need to prove it would add value to the IP?

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

February 18, 2016 - 2:18 pm

Whose course is it?

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

February 18, 2016 - 2:02 pm

Thankyou Jamie.

Yes I have been wondering how I could pay the deposit if I couldn’t negotiate a $1000 deposit. If I paid in cash how I would get it back into the loan? The more I think of it the more I realise I need to do it. Talking through a problem really helps – and so does someone’s confirmation when I am going against advice given…

Do you (or anyone) know if I would need 2 separate equity loans, one for deposit and one for reno funds, or could they be combined somehow and if so is there any problem with it? Are there any conditions attached to getting an equity loan for renovations?

I have opened this question in a new thread in finance, as I think it is really totally separate, and I think I am resolved to refinance as soon as I am sure of my structure. Hope this is not against forum etticut.

With thanks,
Jo

• This reply was modified 8 years, 2 months ago by  jojo.

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

February 18, 2016 - 8:04 am

Thankyou for your reply.

My servicing ability is limiting the amount I can borrow but it is still enough to move forward and make a purchase. I guess this is the reason I would feel much more comfortable with a proper pre-approval.

The main reason I want the loans with the same bank is because I want and equity loan for the deposit and another for the renovations.

Wouldn’t having the loans with the one bank maximise my borrowing?

• This reply was modified 8 years, 2 months ago by  jojo. Reason: add info

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

October 29, 2015 - 10:16 pm

Thanks Jamie :) It’s a good reminder for me.

Yes that was my original plan, buy and hold, but after doing a lot of reading/researching etc I realise if I could reno and sell 2-3 houses at even low to medium success before getting a buy and hold, my financial situation would be greatly enhanced.

Nevertheless, if I need to hold my potential renovated house, it certainly won’t be the end of the world, especially if the rent can hold its value.

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

October 26, 2015 - 10:41 pm

Awesome. That both makes logical sense, and is an answer I wanted to hear… :)

Essentially means if I have to go with plan B, the prospects are pretty good.

Thankyou so much for answering.

[jojoParticipant@melbjoJoin Date: 2015Post Count: 18]

October 22, 2015 - 1:21 pm

Whose course is this?