I generally wouldn't be doing what you are planning via a LOC and also his comment about not match rates is rubbish as once you start talking to the banks discharges team its a different story.

Regards

Shahin

It's the lower of the valuation or COS however in most cases the valuation comes back the same of the COS price so that is what the bank takes as the security value. There is scope to go back even as early as 3-6 months after the purchase and have the property re-valued however you will need to have a strong case as to why the property has since…[Read more]

Sit down with your broker or banker and nut out what your finance structure will need to look like. 

You will need to determine whether you use the entire deposit, some of it or the minimum amount so you don't hit the 'deposit' wall. By the sounds of it you should not have any issues with servicing. 

If you are going to go hard and do a 95% LVR…[Read more]

If the net operating cost per month of the new building is more than the older building then depreciation isn't really a benefit right? It is the same concept of negative gearing. 

Have you done the numbers of both properties and weighed this up against the CG potential?

Regards

Shahin

There are 4 lenders – I would start with CBA and NAB/Homeside. The problem with CBA is that although they offer upfront valuations – they don't provide upfront valuations for properties that have 3 or more units on one title whereas Homeside does.

So first get your broker to do the standard analysis – i.e. postcode, servicing (although if you…[Read more]

Funny you should say that as I have recently been doing bucket loans from Blacktown onwards. People just need to be careful of the renovation aspect (and of course the amount of unapproved granny flats)!

Regards

Shahin

Yep thats what gave it away for me. I  thought he may be he/she is from the states but living here.

Regards

Shahin

The other thing I just remembered is that your total loan amount is under $1mil which is the sweet spot for several of the lenders as it falls under their DUA.

Regards

Shahin

This is tricky and its not best to gear that high with all properties. How high you should go on an LVR depends greatly between investor, situation and IP strategy. 

Also getting an approval at 95% is harder than many think.

Regards

Shahin

Is the property in Australia?

Regards

Shahin

No bank will value the property on 3 seperate titles if the DA is staged as construction and then subdivision which this is the case.

You will have to find another bank (and there is a few out there and they all offer vals) – order the upfront val and contest the hell out of it.

Has your broker contested the val with Bankwest?

Regards

Shahin

I would agree with 99% of the things you say Matt but I am strong believer that its comes down to the specific valuer and not the company.

I have a some bad and surprisingly good interactions with the guys from HTW.

Regards

Shahin

They have niches but you I would only use them as a last possible resort.

Regards

Shahin

Well you have no choice – they will not change the valuation. So what I suggest is that you tell your broker to order upfront vals with the lenders have provide that. Before he does that need to check that the scenario is an acceptable policy for that lender, i.e. don't bother ordering an upfront val with Macquarie. 

Also if the val has come back…[Read more]

Yes completely agree on the $50k part. 

Regards

Shahin

Are you dealing direct with Bankwest or via a broker? Also why on earth did you go through Bankwest?

Regards

Shahin

Yep there you go – the valuer can only value the property as is. Why? Because if the proverbial hits the fan right after construction and before subdivision or you don't have the funds to do the subdivision of whatever reason then the bank needs to protect itself.

I would suggest getting an upfront valuation with another lender – I have done this…[Read more]

Hahaha – 'their website is hard to use' – gosh she was scrapping the bottom of the barrel there wasn't she? The best you can do Joe on the variable is 5.40% and they will definitely do that as we have done it for several clients. Negotiate the hell out of it and stand your ground. You either get off the phone saying thanks for the discount or…[Read more]

What's your definition of overpriced? Also re the subdivison and construction – I can't see good margins there – how are you finding it?

Regards

Shahin

So many questions that need to be clarified.

Ok what does the DA say? How is it staged? Its either constructions first subdivision thereafter or vice versa. I dare say its construction first subdivision later as most DA's (in most Sydney councils) are structured this way. This is why the valuer has valued it as 3 dwellings on one title. 

What is…[Read more]