We bought our first IP about 14 months ago. We bought it due to the great location and potential for capital gain from renovations. We bought it on 20% deposit. We are not able to renovate the kitchen and bathroom (new) but when I went to the bank and since i have very little equity in the loan I cannot refinance to use for the reno. The lady at the bank said that they could get a valuatiion done for acots of $100 but that they usually come back undervalued…
WHAT DO OTHER DO IN THIS SITUATION?
I can currently think of some options:
1. self finance the reno and then once done revalue the house and get my money back in the bank
2. get a short term personal loan and then revalue and pay off the loan with the new equity.
3. ???Sorry I have run out of ideas for this one…..Anyone????
[hair2]
Snowflake
you could:
1. Try another lender that will give you a bettter Loan to value ration … this way you can get some of your 20% equity out (Unless the market has moved dwon an aborbed your deposit value).
2. 6 month 0% credit card transfer – Pay for job, revalue once complete (Take lots of before and after photos) and then pay back card.
3. get an 18 month insterest free, nothing to pay deal … then do the same as (2).
Just my 2 cents worth,
Cheers,
KiwiHow much will the reno cost? If you increase the loan to 90%, you may be paying a lot in LMI.
You don’t know the valuation will come in low. Why not risk $100 and take it from there?
Terryw
Discover Home Loans
Parramatta
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If you need to save on the kitchen cost to compensate for the added cost in LMI…. let me know and I can perhaps assist with getting you upto 50% off good quality kitchens…. however it is not top of the line … I would say it is in the top 25% percentile with good quality hinges, door ranges and cabinet styles.
Cheers,
KiwiHi Snowflake,
How much equity would you need to take out to complete the reno? You may be able to refinance to 85% without LMI if this were to be sufficient. Otherwise, as Terry says, it would be a reasonable risk to go ahead with a valuation in order to access more equity.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Cameron
Ho[blink]w would you organise 85% without LMI?
Snowflake
Try W/Pac or Liberty.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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