Forum Replies Created
O.K
here is what we did.
used $50K of parents line of credit for the deposit. Then a year later used another $15K of their money line of credit to pay for the reno. So all up we used about $65K of their line of credit…….
P.S thanks guys… MERRY CHRISTMAS TO YOU ALL!!!!!!!Thanks guys
Sorry I mean prepaying your interest. instead of paying it every month with your loan?
Wll I would sell it if I could figure out that selling and putting the money into my current PPOR will be better than the value increase over the next few years from my IP? Not sure how to make this calculation and what I need to include? Any suggestions on how to figure out these scenarios? P.S at the moment the rent covers the IP loan of $194K but I stll pay 260 fortnight on my parents loan that I used to help fund the deposit on the IP. I could be selling the IP and use the profit and money i am spening on the repayment to pay off more on my PPOR??? But how do I know this is a worthwhile strategy…..
IN additon to this… what could I do to increase my cash flow ie: I am already interest only. What is the benefit of prepaying my interest? Will this help my cashflw throughout the year…. ie: I have some savings I can use to prepay interest if I need to….
I would like to know this also.. Does anyone have any insights?
How close does the second hand kitchen need to be in terms of design or is it easy to mix and match etc……The reason I may need to refinance is that we are currently doing up an IP that we would like to sell in the next 12-24 months. We would like to use the profits from that to pay down the new PPOR we just bought. That will mean a refinance right? does this incure Defereed establishment feed or only if you pay out the loan in full. I also want to be able to fefinance in a few years time as we are planning to have a family. The idea is to pay as much off the loan as we can between now and then and then also use profit from sale of other house to minimise out payments as much as we can… does that make sense?
Also, The property we have bought will incur LMI of $6000. the Loan is at 85%. If we use the proceeds of the sale of the other house we could bring the loan down to below 80% but that would mean a refinance (still with the same comapny just changing the loan amount if you know what I mean).
My first impression would be to rent your own house out while you move into the other one to do renovations. Also I have just done the exact same thing and have come to a great realisation.
We spent 6 months renovating it from scratch. And I mean we did everthing ourselves from the tiling to the pastering. painting etc…
I would strongly advise that unless you can work as fast and as efiecient as the tradies that do their particular trade ie: plaster as fast as the plasterer can plaster then I suggest you dont waste ime with those things. It only takes you 10 times as long and you are missing out on rent every week that goes by. For example, we spent weeks putting in new paster boards and in the end actually got a plasterer in to do it for us and he was done in a day which probably would have taken us a week (we could have done just as good a job but its the time spent). best of luckSnowflake
Thanks Simon,
I have been a bit disheartened at the forum lately as I see so so so many posts that say 90+ people read but no-one replies to. I personally have a habit of trying to help as much and as many people as I can in return for some advice to my own questions and queries…[inlove]
Snowflake
I understand your frustration. TOTALLY. Husband and I spend out 2’s drinking and partying (never thoughtou about investing until 2 years ago). Now we are early 30’s and I am the main income earner. My husband is on a very average wage and we would like to have kids. I am havng anxiety issues with wanting to have achild and wondering how to do this on one wage and pay rent and pay IP. Our IP is an older house (newly renovated) cost us 270K and rents for 285p.w (value $320K) but because we used equity from parent we have a large amount to pay out of our own pocket after rent (about $130p.w). SO: $130 for IP, our own rent and bills = all of husbands wage… HOW CAN I AFFORD TO GO ON MATERNITY LEAVE… And I’m not getting younger… How do people manage???[inlove]
Snowflake
Hi “foundation
WHAT NEW RULES!!!!
[inlove]Snowflake
Why does your IP purchase need to be $400K, (unless you have already found this good deal)? What about buying one for a little less but just as good a deal on paper ie: yield and growth potential?????etc….Then you can have your cake and eat it too…
P.S I know I am in the sam situation.. Do I rent or buy…. Personally we will be buying and then doing it up over 12 months and then renting it out whilst we move to the next one…[inlove]….Snowflake
thanks Terry
Is there any way that we can have the property and the loan in mine and husband name but use parents $250 equity as deposit???like a guarantor ? Even though their house is not sold yet?[inlove]
Snowflake
HI Sepcific,
Just out of interest, where about is this place? I looked at purchasing one like it a few months ago now but my plumber said that as a 4 bedder a laundry is vital and not to loose that aspect……
He also quoted about $200-2500+ costs for plumbing to put applicances in for a brand new bathroom… and that was at mates rates….Snowflake
Rayson,
If you have $7000 t pay of PCM, and only half of it $3500 in rental incomce…. how are you paying for the difference ($3500 at least including expenses) on only $50K?????
Sorry this is not a pick but I’m just curious!!! [inlove]
Snowflake
Isn’t anyone willing to help me out here? Please![inlove]
Snowflake
Hi Steve,
OUr offer on IP2 has been accepted (good deal).. We sign stuff next couple of days…….We have 60 days settlement, is this enougth time for bank to revalue in fortnights time???Will they be approachable to this????
P.S THANKS FOR YOUR REPLY!!!!!! My ARGHMM^#$^%($ is turning to[inlove]
Snowflake
Here is my experience from 3 reno’s.
Painting:
DYI including wall, skirting, undercoats and 2 top costs, ceilings
4litres does about a 14 sq room. Does not include cost if you pay a painter to do it. It takes a lot of time!!!! And I find I have to do it in stages as my arms get so sore I get RSI!!!No kidding try paining a 4 br house al by yourself….It takes lots of time too… not the painting but the drying and repaining etc….We once paid a guy to do the lounge and dining and it costs heaps.Carpet and wood floors: Personally I like woodf flooring if I can -less wear and easier and less costsly to repolish….
Costs vary GREATLY last month I got 3 quotes for a lounge and dinind area only….(1) $950, (2) $800 (3) $550… went with the third once and he did a marvelous job!!!!I consider a 3 br fllor sanding job almost whle house except for kitchen and bath and wet areas etc… Cost you at least $2-3000 professionaly done. Waste of time and your own money if you do it yourself.. too hard and messy.. you could be painting instead!!!Kitchen:
I buy very run down places where the kitchens almost always need replacing. This cost me between $5-8000 with all appliances. I chard rent accordingly…..
Bathroom:
Total makeover DYI ($2500-3500), geting someone in ($4000-8000)I know a lot of people will have different figures but these are my estimates based on my eexperience and the way I renovate.. [inlove]
Snowflake
Terryw
Can I request the broker to organise this?? How do I do this?[inlove]
Snowflake
Hi TerryW
I should have explained my querie more clearly….
I have the money for the reno. I was hoping to finance the new house (Deposit plus costs) from using the equity in my current IP (draw on equity from a property I have just done reno on).. but I was told from the broker that:
1. He can get a preapproval so that I can purchase the new place (at auction)
2. Wont kow how much equity I can draw on from existing property to finance this purchase until the full refinaince valuation is known of the house.. then he can tell me how much I equity I have to spend on purchasing the new place….My problem is….I have a general idea what its my current place is worth ($300,000). THat should give me enough equity to finance the 20% plus costs on the new place.. BUT WHAT IF THE VALUATION comes back at say 30,000 less or something ater the auction?? Then I will have gone to auction only to find out that I the refinance value is less than I thought and not have enought to cover the purchase costs…….ARGHHHHHH
Sorry Still not sure whether i am explaining this o.k…..Anyone???
Terry you have been a big help to me as you always answer my MAD and silly posts… thanks again in retrospect…..
[inlove]
Snowflake
TerryW…and others….
Do I need full approval or only pre-approval to go to Auction???
Also, it looks like we may need to go over 80% LVR maybee 95%… but if we are successful at purchase and we can improve the property we could then refinance at 80%….My questions is-at over 80% I will incur LMi…. that gets charged at the begginning of the loan and you pay it out over the life of the lan right? If we then refinance after th reno, will we get some of it back… I guess the question I am asking is … Is it worth us going over 80% and paying LMI just to have more $ for the reno or do we go 80%, finance reno out of own pocket and then get the money back via a refinancing to 80% …..I would hate to pay $5000 approx LMi for a 3 month reno and then revert to 80% with a revaluation…. a costly reno then???
ANy tips?[inlove]
Snowflake
