Forum Replies Created
Ok, but you would only make Interest payments on 340k until you draw upon the 60k LOC is that correct?
Thanks again Terry and Richard, I think I have this somewhat organised in my brain now.
Just to clarify and sum up,
House worth 320k, consolidate 20k personal loan to make 340k and reaccess lender to use. Keep IO format but create a 100% offset account for non deductible debt. Split loan with line of equity up to lenders LVR limit and summary should be a new home loan at 340k and a line of equity of hopefully 60k (80% lvr and new valuation 500k).Do I sound on track?
Thanks Terry, Just trying to work out how its arranged in account format. and how funds are accessed ie. transfer of funds similar to personal loan within accounts, or if funds need to be requested.
So the seperate split would be for the agreed amount of equity the valuers have agreed upon? The interest rate charged on this seperate split is this just linked to the home loan interest rate?
Thanks Richard I thought as much. Just starting to look at some lenders now, would prefer to have it all with my main banking if possible so all accounts can be viewed.
If I were to consolidate how does it get arranged in the account with a sub loan line of equity.Eg. Say I consolidate and I have a total HL Debt of 340k. In my account it shows the account and the 340k debt, does it then have the sub loan account underneath saying 150k available (purely example purposes) of credit much the same as a credit card or any other loan does. So I could just draw on this credit say for a new IP Deposit and it would be calculated at the interest agreed on the homeloan?
Are there restrictions on what the loan could be used for, obviously this could be a slippers slope to spending all of the equity you have in a property on toys and other items that could leave you in a bad position.Is this basically how it works and is this the standard way its setup for most trying to leverage off other properties consectively?
Thanks Terry,
With the renovation loan, whilst the property is my PPOR is it correct to say I cannot claim any tax deductibles until it becomes my IP? I have done extensive work to the property and looked at the potential of claiming the % of house occupied by the GF but did not want to persue this path as it was rather complex and didn't seem to give much value back over the long term. I usually do my tax as its straight forward for me, ie salary, minimal work expenses and we live in the houseMy other question was, when reaccessing the home loan and looking at transferring, is the best method to just call around to lenders and explain what I am after. Or can a mortgage broker be worth there weight in this situation?
Thanks Terry, the should in your reply was a shouldn’t* was’t it?
Really appreciate the feedback, do you have any suggestions of suitable lenders, Rams i know arent ideal but at the time they were the best choice to get in, and honestly were great to deal with. So when I got in I knew I would need to reasses in a year or 2 which is now.
Thanks again,
thanks for the replies. Any suggestions into lenders i should take a look at to facilitate such a move?
So basically if I consolidate with Rams (should be possible) or to another lender, they will pay down the personal loan I have with my bank for the renovations or do I just get access to that additional funds?
Terry above you mention should be ok for the loan to be consolidated if spent on renovations alone which it has. Is there any issues if the HL is with Rams and the reno loan with westpac?
Just wondering how they go about doing this consolidation, by either releasing equity on the property or increasing the loan value? Bit confusedSorry forgot to mention this but thought I did. Loan is already io and not paying it down. Would it cost me alot to move from rams to a lender who has a sub loan setup. Or if I remained with rams should I be asking for consolidation
Thanks guys,
I owe 320k on my PPOR and at the moment just doing some renovations. At the moment in the area you can get a renovated 3 bedroom place like mine for 400-420k. Just trying to work out my next step, do I put the money into my renovations or do I just keep it and save for another deposit on another place. I expect to be in the place until end of next year but after that I think I will be leaving. When the renovations are done I could probably get 600 to 650 p/w for the rent as it was valued at 500 p/w prior to renovations. So wondering if its worth saving seperately for another IP after the renovations are done and renting this place out or selling it depending on the market at the time. I dont think trying to use equity after the renovations are done is really going to help much.
Thanks Jamie that clears it up a bit for me. So basically if I owe 320k on a place, increase its value to 400k, the max value of the next property can only be 320k minus fees etc.. If the house is my first place and my PPOR now and then i decide to move somewhere else and rent it out. Say 3 yrs down the track i decide to sell it, I can still claim CGT exemption cant I?
Hi,
Wouldnt you only be able to get access to 80k not 320k. So they 80k would effectively become the new deposit for whatever property you buy next. If the person sold for 400k and made the 80k -25k profit, if it was their place of residence isnt it CGT exempt??thanks Brian,
they will definately be core filled. The piers will be 2m but inbetween the piers its only 2 block courses high. The ground conditions probably move quite a bit because of the underground firing, but i think the reo will take care of it, and thinking of putting horzontal reo between the 2 courses between piers.This would definately be a concrete truck job wouldnt it? A mixer would just take to long for the size of the pour wouldnt it?
thanks for your help guys,
I havent spoken with the neighbours yet, didnt think I needed to because it is my front fence and I am not touching either of theres so is there still a need to? I am using the line of there fences as a guide to my boundary and going a little back onto my property then the original fence, so I dont think boundary is an issue.The land is mostly level and should not need step footings. Do you think 600 x 400 deep is to deep would 300mm be ok?
Also whats the best way to screed it if I dont have formwork? If i use some reo at the heights i need then wont it be exposed when i screed down to it?
Cheers for the reply,
Insurance is all taken care of. Not getting any on-site quotations from contractor as I am doing the work myself.
I see where the lawyer is coming from, but i do remember reading that this was a investment technique some people used. They buy a house, get early posession, smash some renovations up quick smart and rent it out or sell it straight away (im assuming certain fees and charges are wavered in this process). I think I will hold off and we will just go do some paint colour shopping, kitchen designing and carpet choice and have it all in place for when we take full posession. It would just be nice to get some work done asap, prior to having my knee reconstructed mid this month……..cant see me getting on all fours to lay a bamboo floor with that.thanks Daniel, will watch it now. It says its for laminate flooring is it the same with bamboo floating floor?
I live in mt isa, are there any things i should be careful of with the heat out here etc?forgot to ask, is Tongue and groove or click better in terms of installation and fit? I plan on only doing a floating floor on the underlay on not fixing it to the concrete slab. I am assuming click is easier as it generally seams more expensive, do you still need to use glue with click?
Thanks,
Hi Muddwiggle,
I found a place that I will probably be using although freight is a bit high IMO.
http://www.lionkingflooring.com.au/index.php?act=thanksI am looking at strandwoven natural semi gloss click selection (NSWSG) for around 52m^2. I am also looking to get there 2 in 1 underlay for 2m^2. They have advised freight to depot in mount isa is $770 though, so its a bit high but I am getting 80m^2.
They have a 10 year strata warranty covering splitting and warping (manufacturers) and a 5 year pealing warranty which is dealt through them. Prefinish is german grade polyurethane (not sure how many coats but bamboozle.com.au seemed to have the same type?)I am going to keep looking around and ask a few more questions before buying but i think it looks good. Anyone used them or heard of them?
I'm looking at floating floors myself and those prices seem really high to me for bamboo. Were you looking at strand woven with any special details?
I have come across a few floor places selling vertical natural sections for $39 per/m^2 and the highest I have come across was $74 m^2. I am trying to organise around 80 m^2 for around the $40-50 mark and will let you know how i go. You can get cheaper stuff on ebay, dont know the quality but im thinking it wouldnt be great, but alot of ebay stores are real stores aswell.i orginally wanted to go westpac as i bank with them but they would not lend over 240k in mt isa after GFC. So i tried looking for a place that would do 95% LVR with LMI Capped as i dont have a massive deposit. RAMS was the only one i found i didnt need to be signed up with to go through and not alot of places doing 95% lvr with capped lmi.
