There is nothing wrong with putting in a low offer – however there are some strategies you can employ to better your chances.

1. Get your hands on recent sales that will help your case and a reason why you are putting in that offer. 

2. Building defects. If you have an eye for defects then point them out. For example, termite damage, structural…[Read more]

I would wait unless there is an urgent need to get finance. More importantly, I would ensure that the next time you apply – you are confident of an approval. This means that you should ensure that your situation meets the policy of that lender and also your serviceability passes. There is plenty more things you need to prepare before the…[Read more]

Hi Sam,

Try Wincrest homes – they will ask for the plans so you will need to email this to them for them to provide you with a quote. 

There is not a lot of builders that do custom designs and those that do charge an arm and a leg.

Regards

Shahin

G'day MBA,

It still doesn't sound right and also 5-6 queries in the past 12 months isn't too bad. When applying for the loan you need to proactively explain why you have had the queries. The biggest concern is if you have had say 3 queries within the last 3 months. If you had 3 or more queries in the last 3 months then I recommend you wait.

Did…[Read more]

Hi Sam,

You are looking at around $1300 per sqm. Do you have DA/CC? Also what area of Sydney are you building as that would dictate the type of duplex you build and thus the builder.

Regards

Shahin

If you are getting knocked back at 80% LVR then something is not right. Have you been able to ascertain why the loan is getting declined? 

Are you going through the bank/branch or via a broker?

Regards

Shahin

Ok so lets assume your property value is $350k – then the equity you have @ 80% would be $130k (i am not factoring the redraw amount). This would mean you have at least $130k to contribute to the purchase of your next IP. This also means that with a deposit amont of $130k you can purchase a property (without paying LMI) for about $520k. So from an…[Read more]

HI Newjo,

You need to ensure that the loans are standalone facilities. You need to also ensure that you are borrowing as much as you can against the IP and paying down your PPOR as quickly as possible. Therefore, having an IO loan on the IP would work well.

You would want to have an offset against the PPOR and pay as much principle into that…[Read more]

Wow – I genuinely thought they were new cupboards. Nice work.

Ok the bank with need a signed rental letter together with the agent/real estate letterhead. The bank and the valuer will also need to see the DA before formally approving anything. Therefore, you need to get a credit assessed approval subject the to valuation and of course the DA/CC approval. Also you are fine with Blueprint as a licenced builder. 

Hi Daz,

Suncorp is one of the harshest when it comes to servicing – however a lender like Westpac is quite good especially when using rental income and negative gearing benefits in the Servicing calculation. Based on the information you have provided above – there is no reason why you will not be able borrow the amount requested with at least…[Read more]

Hi Eddy,

Absolutely – and if its not bedroom I would consider some form of living area or storage area. What is the sqm?

An investor I manage did something quite similar and made a very handy profit (Capital Growth). Make sure its not a DIY and you engage a licensed builder to give you advise re foundation work.

Regards

Shahin 

G'Day NHG,

The property is on a 550sqm block and i am relatively confident GF should not be an issue. The agent mentioned to them that with a very simple reno they could get $400 at the very minimum. My real interest in the property was the CG potential. You can do a lot (by way of CG) with a brick house, close to the station and in a…[Read more]

Hi Jane,

Re the Kitchen for $1,607 – does that include the benchtop? Also where did you get a kitchen of that size for $1607? 

Regards

Shahin

Hi David,

You can borrow up to 90% of the existing property value. Cash flow is very important as part of any investment strategy but please don't lose sight of the Capital Growth potential of a property. It sounds like you need a 5 and 10 year investment strategy plan. This way you can determine what type of properties you need to be chasing and…[Read more]

I don't think so on the basis that a had a client purchase a 3 bedder 2 weeks for $315k. It was in a cul-de-sac, brick and 7 minute walk to the station. They were going to live in the property but it was being rented for $350 per week. Had good potential for a renovation however it was rented so the reno could have been done at a later stage.

Budget permitting I would stick with Mount Druitt and suburbs on the train line.

Hi Jane,

Nice blog – what's your thoughts on the re-use of existing materials (such as floorboards, internal doors, cabinets, etc) within the house instead of buying new or even buying second hand as opposed to buying new?

Regards

Shahin

Hi Pat,

Your income is fantastic but your deposit base is not so much. Depending on your future needs it sounds like you need to be able to park and accumulate funds so you need to consider an Interest Only loan with a linked offset. This way you can start accumulating the principle payments in an offset account that can be accessed in the future…[Read more]

Everyone's situation is different. I personally try at contribute as least amount of deposit as possible but I try to stay at the 89% LVR mark because after 90% the LMI premium increases significantly. Having said that, I have previously found 2 properties at absolute bargain prices when I didn't have too much deposit so I went for a 95% LVR lend.…[Read more]