- Stuart Wemyss wrote:Can I shamelessly plug one of my articles in API on this very topic???
Good article, but your point about valuation costs is not really accurate … the sector is so competitive now and banks (at least the major ones) will pay for the valuations ..
Maybe a poor choice of words but I find it offencive to suggest I am wrong on this point. I take pride in my work! Some lenders will waive valuation cost but there are plenty that will not. Consider the example where you might have five properties. It will cost the lender more than $1,000 in out of pocket expenses to value these properties. Mange lenders will not waive a fee of this size – at least not all of it. Therefore, it is a valid and correct point to make and something borrowers should consider when structuring loan and choosing lenders.
Wow, I am going to be very smart one day, if I just keep reading advice other people receive. Thing is, my brain isn't working much today (I've got a cold), and I don't know some of the jargon. What are LVR's? I am also trying hard to work out how to structure the loan we need, as husband and I have had our offer to buy 2 blocks of land next to each other accepted, and now have to apply for finance. We don't want to use the homes we own to secure the loan… so what do we do? We intend buying more IPs, but need to know how to do the financial side of things. Unless everyone else out there has positive cash flow properties from the word go, I don't understand how you can increase your portfolio – wouldn't your loan repayments be HUGE?
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