I read it as if he is taking 80% of the value of the property and then subtracting the existing loan amount for this to get his equity. 

Paul – what is the current value and loan amount?

Regards

Shahin

Honestly I hate Guildford – there is/has been massive development in the area for several years and there is an over supply. Its not a very desirable suburb – its quite industrial. Its not on the train line to the City whereas Harris Park and Granville are. 

Harris Park goes quickly because there is no more units that can go up – its developed to…[Read more]

It doesn't quite work that way. Just a few things – in the above scenario you will may not be able to use rental income as part of the servicing (depending on how the application is structured).

If you have an aggressive IP strategy have you considered borrowing as much as possible on the first purchase and leaving a higher deposit amount for the…[Read more]

If its units I would stick to Harris Park and Granville – yield is better and CG potential is stronger as well. 

The only issue with Harris Park is the crime rate but thats been an issue for a very long time. 

Granville had the same stigma but its changed a lot over the last few years. 

Regards

Shahin

Start with the upfront val to determine the equity and tee up a time to see your banker and broker about the numbers. 

Also re finance submit the loan as the worst case (high loan amount) you think you will need in case you decide to use the funds for renovations, subdivision, etc.

Regards

Shahin

Yes and no – there are certain sections that the State policies refer to the DCP so they work side by side. 

Would it be worth it? Depends on the area – every is doing Sepp 5's in Kurring gai because its almost impossible to do it via the council policy. Land value is high so numbers stack up in that area.

Regards

Shahin

No stamp duty is included in the above numbers. 

The total loan amount is tax deductible. Not sure when you purchased the property at $371k but definitely look at an upfront val. They are free and will let you know exactly what you can do with the equity. 

I get the feeling you haven't discussed this with your banker or…[Read more]

In short if you are purchasing a property for $190k in NSW with a $40k deposit then your LVR is almost 82% and the LMI would be around $800. You can capitalise this on top of the loan. 

Therefore the costs are not as much as you think. The other costs would be the conveyancing costs which is around $1,500 and the Building and Pest Inspection…[Read more]

No issues with 10% but what are the costs you are referring to re 'purchasing costs'? Do you mean stamp duty costs, tc?

Regards

Shahin

Re postcodes it depends – some banks will not lend to some postcodes and other will have restrictions on either the LVR or the loan amount or both. Double check but you should be fine. 

Re structuring the loan – this is the set up:

Property 1:

PPOR Value: $400K (example)
PPOR Loan (a/c 123): $280k (example)
Loan 2 – Deposit for other purchase…[Read more]

Hunter Valley is a massive area so you need to speak to your banker or broker to check that there are no restrictions on postcode but I highly doubt that there would be so you should be ok. 

You are also calculating equity correctly which is great. 

You shouldn't have any issues with finance and the application seems straight forward. Keep the…[Read more]

Ok you need to make sure that the sum insured is equal or more than the valuation amount for the building. At $320k you should be fine.

Spend a couple of bucks more and go for the higher amount.

Regards

Shahin

Which state are we talking about? Whats the postcode? How are you calculating equity? 

Regards

Shahin

I would highly doubt you can speak to the bank rep directly. It would have to go via the agent.

Who did speak to in the bank?

Regards

Shahin

Yeah I was using NAB quite a bit on those applications but they recently changed it to 3. Also yes they are definitely 4 dwellings on one title. They need to be dwellings though – not boarding homes, etc. 

Sammy – please lets us know how you go. 

Regards

Shahin

Who is your building insurer when you settled the property and what was the amount insured? Or has settlement not taken place yet?

Regards

Shahin

Is the 228sqm including courtyard or is the actual interior floorspace?

Regards

Shahin

Yes I have done 3 at 90% and 1 at 95%. All were approved. They all came back with 4's for market but they were countered by recent sales and overall the applications with either good or strong. 

They will only decline it if the application itself is borderline and you need the rental for servicing and of course you get a bunch of 4's for rating…[Read more]

A 228sqm is gargantuan – is this normal for the suburb?

Regards

Shahin

You can definitely do it with CBA. The issue will be around the risk ratings. If there are any 5's then its not doable. 

You cannot order the vals upfront for a property that has 4 units on the one title.

Regards

Shahin