Hello All,
I have an investment property on the Southside of Brisbane with about $60k equity in it, loan $240k & value $300k (depending on the valuer!) Now its a good property requiring little maintenance and returns a resonable rent of $300 per week. Thought I would throw it out there for everyones opinion, should I keep the property and refinance it at 95% with the same lender, refinance with a new lender at a lower rate but pay the fess or sell the property (personal friend is a realtor so low commission). What I have noticed is that valuers are coming in low on refinances but seem to be soft on purchases as long as it is ball park. We dont normally sell properties, however, the money can be put to better use i.e. splitter / reno / build etc.
No thoughts? None at all? Not even a single one?
(Maybe I should post a topic to cause an arguement amoungst certain forum members and then slide a question in)
I think its a great time to buy an investment property and no one can prove me wrong. (How's that?)
perpetrator, give people a chance to read your posts. You shouldn't expect instant answers.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You will have a hard time refinancing it to 95% LVR, probably 90% would be the max and then LMI is payable. Valuations coming in low as you said too.
Why sell? do you need the money? Since prices are low it may be better off just to hold and wait for the next jump in prices. Consider refinancing on a lower rate, but make sure it is worth it with the exit fees. Should be almost paying for itself – so I would keep.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terryw, for both messages. I do need the money but only to invest elsewhere. The reason I was leaning towards a sale was because it seems that valuers are not so hard on purchases as they are on refinances.
A valuation is based on recent local comparative sales so should be pretty close to the selling price.
I hate doing it but if you cross collateralise you might be able to get 95% on the refi.
Richard Taylor | Australia's leading private lender
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