If your budget is $350k then you should be able to ascertain a TT villa.

1. You have paid LMI and therefore have LMI credit. Do the numbers before freely considering a refinance. Thats not to say that future properties cannot be with another lender.

2. If the properties are cross securitised and you do sell one then NAB will need to order a valuation to ensure that they have adequate equity against the current…[Read more]

Can you renovate the property and draw upon some equity? 

Prices may have not gone up in the past few years but is there scope for CG growth in the upcoming years?

What do the numbers look like if you sell the property (factor in sell costs) and purchase another property?

I would take a torrens title villa/townhouse over a unit any day. The other problem I have with units in blacktown is that there is a massive oversupply. Townhouse is a much better option.

Which country is the property in?

Short answer is yes if the application is structured correctly. Make sure you draw upon the equity against the land and not linking the securities together.

Different lenders will lend different amounts. Some are conservative in their borrowing capacity and other are more generous.

If we make a few assumptions like we use a more generous lender, the fact that you are single, with no dependents, then you would be looking at the high $300's in terms of servicing. Use of proposed rental income would…[Read more]

Best to map out a few scenarios – you have strong cashflow and a decent deposit base. You need to determine whether you go for more of a cashflow play or CG/equity play. Depending on the purchase price – you may consider a high LVR lend or less (80%). Lots of things to consider and think about. Start with a few scenarios and don't forget to do the…[Read more]

Which state is the property? 

Another common strategy is to purchase an PPOR property and then develop it and turn into a hybrid PPOR/IP investment. 

Get specific advice on this.

Did he pay LMI on any of the existing properties? If so then he is losing the LI credit he has up his sleeve. UBank is a good non frills lender but terrible cash out policy and security/development policy so it all depends on what he plans to do with the each of the properties. 

A lot of people underestimate cashout (in order to fund for further…[Read more]

As Oscar suggested – contact Terry W from this forum. 

Think longer term. If you have an aggressive IP acquisition strategy then go hard go early. $240k is a sweet spot for a 95% lend. LMI is tax deductible for the first five years and you can park the remainder of the deposit in an offset account to be used for subsequent purchase/s, renovation or development. 

Many investors hit an equity wall so…[Read more]

Far out there are so many where do you begin? Here are a couple:

1. Check out zoning (if you want to build or development)
2. Check out location of sewer lines and easements
3. If we are talking rural then check out possible LVR and postcode restrictions depending on the bank
4. If you are building – check out the council's contribution costs…[Read more]

Hi Peter,

Your comment seems to be purely based on their service and not the tangible product itself in order to measure/rate the quality of the stock. Are you able to comment on the quality of finishes, strata, etc?

Excellent post Ryan!

Speak to your banker or broker for specifi advice as the loan is in LMI territory and certain things would need to be verified. 

Darryl is excellent as is Leonie from CSM conveyancing.

Need much more information to give you a definite answer but taking into consideration certain assumptions (such as the fact that you don't have any dependents) you do service with a few banks but servicing is very tight. This is also on the basis that the casual employment cannot be used. 

Which state are you purchasing?

Variable rates are subject to change and I think this is a bit gimmicky. There is a bit of debate whether their product is a true offset and I haven't seen anyone at Firstmac confirm this. In their defence historically they have had quite good rates – its just that their conservative policy let's them down.

What is the loan amount and what are…[Read more]

Ok so the existing property will be turned into an IP and the new purchase will be your PPOR – is  that correct?

Also are you planning to convert the new PPOR into an investment anytime afterwards?