Hi Property gurus!
I’d be happy to get advice on the best strategy to finance repairs to a rotting deck on our rented house.
I’m aware we can claim the cost of repair to original condition and thats all I intend to do.
But the mortgage is maxed already and say it costs $10k, would it be worth trying to extend/refinance or take out some other loan? Credit card seems like a bad idea.
Might be a dumb question for some but I’m new to this so thanks for any advice!
Hi TTB
If the work is being carried out by a Licensed Tradesman with a written quote and the subsequent post work valuation increases the value by at least the same amount you maybe able to increase the existing loan by 90% of the increase. The funds would only be released post work so tradesman may not be happy.
Other than this is you have no available equity in this or any other property going to be a matter of raising it by any means you can.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ideally you would want to borrow to repair or improve an investment property – unless you have no non-deductible debt perhaps.
Richard’s idea is good. Perhaps you could use a related party loan to pay the tradesman and then refinance this with the bank once complete.
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 must be logged in to reply to this topic. If you don't have an account, you can register here.
