If the loan amount is under $1mil then regardless of LVR ME Bank will accept the COS and will not order a valuation. Quite a handy niche.

Try ordering a few different types of valuation across a few lenders. Most likely there will be a bit of difference in the valuation amount quoted by each valuer. 

You may find that another bank will give you more equity than your current bank.

Just finished my development in Pymble so need to offload that and move onto the next development – I have eyed a few places but need to make the time to act rather than procrastinate. 

It doesn't matter if its interest only or not. Most banks offer free upfront valuations. Speak to your banker or broker and order an upfront valuations first to see how much equity you have. Its quick and its free.

Equity is calculated on the between 80% to 90% of the value. So lets say the property is worth $500,000 and your current loan against…[Read more]

Why not just go with a lender that has a no valuation policy?

Depends on where you are building. A GF in Mosman will add 110% in value (value defined as the amount that the valuation will increaseby) whereas a GF in Wilmot will add 60% in value. This is a time where an upfront valuation will come in handy.

Oversupply of GF's in far western sydney is a massive concern. 

Where exactly are you building?

Have you considered the land releases in schofields?

Western Sydney is a massive area – how west are you willing to go?

$15k isn't going to take you far so jumping on the FHOG wagon might be required.

I have used service seeking for my current development in sydney and generally found it excellent. Some jobs attract a lot of people (like tiling, concreting, timber floor board installation, etc) and some don't (fencing, etc). I recommend you still do your due diligence. I also found that it was hard for them to give a quote over the…[Read more]

Creasy23 wrote:
 My questions are:

what is the optimum amount you should have in your super before looking into this?

is around $10K the average cost of setting up a SMSF? ($7K to set up and $3K for incidentals)

if we were looking to purchase a property for around $320K, I am thinking $90K be sufficient to just cover these costs? (set up,…[Read more]

In that case your only option is to go with a specialised lender (i.e Pepper) but you will be charged an arm and a leg for establishment fees, rates, etc. You may need to go down this path and then refinance at a later stage.

There are a lot of policies that puzzle me like Homeside's 6% cap on rental but this is one of the policies that definitely make sense.

CBA was running at 5 days but now its around 3 days because they worked over the weekend.

Is your total borrowings with CBA over $1mil because it will go to LMI and that will create blockages.

Other than that I suspect the broker (sorry I don't want to blame the broker) may have forgotten to send the necessary information the first time around…[Read more]

Pretty straight forward but you will be up for stamping charges when you transfer the title to yourself. Have you factored this in?

What exactly is the default? i.e how much, lender default or telco default? Did you go bankrupt? What is the LVR? Also are you married? If so can the loan service under your partner's name?

Do you have plans? if so are they DA plans or CC plans? Are you factoring in site costs? if so do you know much excavation, etc is involved? Do you have DA? If so what are the additional conditions of the DA? These will also sway the development costs. Also have you determined the council contribution costs? Have you considered the DA, CC and OC costs?

I dare say that a block in hornsby would be sitting on a cliff or will be extremely steep. If this is the case – then your biggest issue will be rock excavation. This is going to cost lots. You can start by getting some ideas from an architect and then discussing this with a builder to determine approx cost.

The only variable here is the council.…[Read more]

The valuer spoke to the broker? Hmmm that doesn't sound right?

Do your own research and don't just follow someone elses. Your first purchase is oh so important because it will either anchor you or set up very well for subsequent purchases.

This forum is full of useful information. Also set yourself up with a network of like minded people and see what has and hasn't worked for them.

Bankwest shouldn't have an issue financing this unless there is a specific issue.

What have they advised you?

Are you dealing with them direct or via a broker?

Also have they done the valuation? Do you have the valuation report.

You shouldn't just apply with another lender because at 95% LVR you don't want multiple hits on your credit…

You need to engage a town planner – try Aaron:

http://www.aaronsice.com.au