This already falls under the Sepp and everyone is doing it so I am surprised if the State government puts out a further incentive.

Regards

Shahin

Most lenders offer upfront valuations so check with your banker or broker.

You need to sit down and give some thought on how much equity you going to draw from your existing property.

Also make sure that the loans are structured and set up correctly for each of the properties.

Regards

Shahin

Have you tried ascertain an upfront val via another lender?

Regards

Shahin

Can you list all the things you are including in your cashflow analysis?

For starters have you included the following:

1. Building insurance (if its a house)
2. Strata (if its a unit)
3. Landlord Insurance
4. Property Management Fees
5. Loan Interest
6. Water rates (if its a unit)

Regards

Shahin

$80k is a good size deposit that will give you a range of options. Depending on the state due to stamp duty charges, you will be able to pick up a property for approx $720k with a $80k deposit. 

A strategy could be to perhaps purchase one now with a smaller deposit and another property later. Just make sure you think about your long term strategy…[Read more]

Also option 2 would be a definite no go for me as it carries massive risks.

Regards

Shahin

Can you rent some of the rooms out? 

Can you downgrade to something very 'modest' or better yet move in with family and rent out the property?

Regards

Shahin

Which lender is it?

Regards

Shahin

Ok then you need to compare using cash vs going for a higher LVR ratio. You may find that the higher LVR ratio is the better option that using all/most of your cash/deposit upfront.

Regards

Shahin

Some banks will not allow you to go to 95% on existing loans whereas some lenders will if you are refinancing. 

If you are taking out say $40k against your existing property and the existing loan is $284k then you need 2 loan accounts. One for $284k and the other for $40k. Then you will have the third loan which is for the 2nd…[Read more]

Ok so at an 80% lend you have $20k in equity to use and at a 90% lend you have $58k (minus the LMI payable) in equity. Don't forget to set up the facility as a standalone facility instead of topping the existing loan.

Who did the valuation?

Regards

Shahin

How are you calculating equity? i.e what's the loan amount and the value of the property?

Regards

Shahin

Yes this is very true – I lot of people do not realise that campbelltown has a close proximity to beaches.

Regards

Shahin

Have you or your banker/broker done any cashflow analysis? Start from here. Measure the total net loss you are incurring per year and weigh this against the projected CG. You should be doing this for every purchase.

Regards

Shahin

I would find another broker – you should be able to find a good one in Perth.

Regards

Shahin

Are you talking about a unit or house? What is average net loss per year for the next 5 years?

Regards

Shahin

Good Engelo. Im working on a 2 dwelling development but like anything its a matter of finding the time to do even more!

Keep the forum updated with your progress.

Regards

Shahin

LMI is a once off upfront payment which protects the lender not you. It is also tax deductible for the first 5 years. 

Regards

Shahin

They all need to be re-structured properly. Did you originally deal with a banker or broker?

Regards

Shahin

Sounds like you are purchasing the property in Mackay as a PPOR and then turning this into a IP. If this is the case then you want to be wary of paying it down. You need to ensure that the structure is set up correctly.

Secondly, are you purchasing in Mackay because you are going to be working there or because there is scope for good CG? Im going…[Read more]