Hi could really use some advice on right loan for IP3 so I can use equity for deposit on IP4. My situation is that I have asked my bank o do a valuation of a property prior to loan application. I am expecting the valuation to come in at 150,000. My loan will be for 90,000. My bank operates on 80% lvr. What would e the best way to access this equity for deposit on IP4 thanks everyone I learn so much from this forum
How much is the purchase price for the 4th IP? What is the value of IP3? What is the amount owing on IP3?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi purchase price on IP4 looking at 240,000 max. Value of IP3 150,000 owing 90,000.
cheers
Miller based on the fact you cant squeeze a higher valuation out of IP 3 with another lender then way to go would be:
1) Refinance IP 3 to a 90% of the valuation. $150K x 90% = $135K less existing loan of $90,000 = $45,000.
2) Purchase of IP 4. Take 45K raised from IP3 Refinance less stamp duty and other acqusition costs and use balance of funds to apply for a standalone loan secured against IP 4 solely.
Once you now the exact valuation on IP 3 you could play around with numbers to see the savings in LMI etc by reducing or increasing the individual loan amounts.
Any questions ask away.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Miller
Richard's on the money as always – providing the phones are still working in Brissy, I'd be giving him a buzz to get this sorted for you.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Depending on which state you are in you will require at least 21k for a deposit to purchase a property for $240,000. This would be at a 95% lend. It may fit well with your longer term strategy to use the less deposit/equity. Additionally the LMI premium is tax deductible for the first 5 years.
If IP3 is valued at $150,000 and it has $90,000 owing on it then you have $30k in equity @ a 80% lend. So you can use the funds for the deposit for the purchase of IP4. If you use the $30k in full then you may fall under the 90% LVR which means a much lower LMI so depending on your strategy you have a few options. Equity wise go higher on IP3 than on IP4 as the LMI would be lower. Make sure that they are standalone facilities. Also make sure the decision you make today caters for what you want to do tomorrow.
Also most lenders offer upfront valuations – it may be good to utilise this and confirm that the value IP3 is in fact $150k.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Ah Jamie is that the thing that sits on the right hand corner of my desk and rings lol
Yes we are back.
Anyone need any firewood? Got a tree down on my block that would keep you warm down South for many a Winter.
That's a job for the next few weekends.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
