I purchased an off the plan investment unit in june 07 in Brisbane. It is due to be completed in about 3 months. Based on sales of simillar units in the same street and area it has had some good capital appreciation. At the time of getting the loan approval In June 07 I was only just able to get a big enough loan for the unit.
I am considering buying another unit and would like to know. Can I have a re-evaluation of my first unit done, with the resulting increase in equity allowing me to get a second invetment loan approved for another off the plan purchase.
Also If the above is possible do I have to wait untill the first unit is built and settles before I can get a loan for the next unit.
Thanks
It depends if you were restricted due to lack of deposit or income?
If income, then you will need to have had a large pay rise, probably. Things have tightened up since then so it will be harder to qualify – in fact you should check up that you can still qualify for the one you have applied for.
If your income is ok, then you may be able to utilise the equity, but you will probably find the lender will only lend you x% (maybe 80%) based on the value as long as it does not exceed purchase price. This may free up the money you were going to use as deposit so you can use that on the second one.
Otherwise you will need to settle on the unit and apply for a quick increase – whether this will be granted so soon after settlement is up to the lender, but pobably will not be approved if LMI is involved.
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
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