Hi everyone. Little bit of background. Queensland resident. 42 years old. One PPOR no investments yet. Only had PPOR for just over 1 year. Townhouse in a reasonably good area. I want to buy an IP using any equity I have in my PPOR. I was made redundant last year and now only have part time/casual employment. Being made redundant made me realise how little my wife and I had to back us up if something went wrong.
Sorry if these are real Newby questions and if they are available elsewhere in this site please direct me.
1. How do I know how much equity I have and I am able to access?
2. If I pay for a valuer to come and value my place will the banks accept that valuation or do they need to use there own guys?
3. If Bank “A” comes back with a less than desirable valuation can I just try Bank “B” or “C” to see if I can get a better one?
4. If I do try many banks to get the best valuation will that trash my credit score?
5. If I have enough equity to purchase my first IP can you do it with all equity or do you need some cash in hand for expenses? I did see something in the media about new changes to investment rules requiring investors to have genuine savings???
Sorry for so many questions. I want to get it right. I think I only have 20 odd years before retirement so would like to set myself up before I retire.
This is my first post so if I have set it out wrong or put it in the wrong section please let me know. I am a quick learner but need to be shown sometimes.
Cheers.
JD1. apply for a loan with the same bank against your property. separate split, LOC best from a tax perspective. But to borrow money you will need to show income enough to service the loan
2. nope.
3. yes
4. only if you actually lodge an application. some allow valuations prior to this
5. If you can borrow enough againnst your PPOR then you could pay for the IP using these funds without the IP being mortgaged.
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.
Much appreciated.
It always impresses me when people give so freely of their knowledge.
May I ask, if in your business, you service the Queensland/Brisbane area?
Regards
JDBe careful with val shopping too – it’s not just about getting the highest valuation, but ensuring the lender you utilise for your PPOR is both flexible for investors in allowing equity releases now and in the future.
A good strategic view of the long term will see you paying down your PPOR, freeing up additional funds to continue releasing as investment property deposits – if the policy of the lender won’t allow this, you’re locking up your potential to rapidly expand your portfolio.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks Corey.
Appreciate the reply. Just checking out your website now.
Cheers.
Joel.
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