Forum Replies Created
Thanks JamieM for your comments.
I do have some questions:
1. We have previously paid LMI in our home loan. How much more LMI do we have to pay?
2. Can this LMI be capitalised on the top up loan?
3. Is the the top up loan a separate loan account?Thanks again for your help.
Thanks to everybody for their valuable input.
After reading some related posts, there's going to be change of plans. Won't rent out our home anymore (after some horrible stories I read) and will just stay put and pay interest only on the mortgage with the offset acct. Will try to build up our savings for our 1st IP. When the fixed period expires on June 2011, we will ask for a valuation. Hopefully this time, we can get a better one, which will give us enough equity to use for our 1st IP. Will it be a good idea to get another valuation from another lender at least just to compare? How much will this cost?
Also, the 9k in our redraw, should I transfer this over to the offset account (to form part of our savings for the IP) or leave it in the redraw?
Do you know of a lender who can give us a better yield (valuation)?
Actually, I already converted the variable portion into IO 2 wks ago. Need to wait until the 10/06/11 (Fixed loan expiry) before I can convert the Fixed loan (the bigger loan) to IO. I considered converting to IO as we are thinking of renting out our home and thus turning it into IP. But if we stay and pay IO, that seems kinda odd as we are supposed to pay down our mortgage which is a non deductible debt, right? Can you pls clarify as this is something new to me and seems outside the norm.
Thanks Jamie for the reply.
Actually, CBA did a valuation August last year at 430K which we think is so low. I just based my estimate on the selling prices of same houses in our suburb. So we just accepted that maybe we can't tap on the equity as of this time.
That's why we are thinking of ways to boost our savings for the deposit of the IP. That is when the option to rent out our home came out. Do you think this is the best option available to us? We really want to start this year..Unless..you guys have other suggestions…
Hi, this is my first post. I think Pootie and I are almost in the same situation only with us, we don't have the equity.
We bought the land and built a house on it in 2007. Total cost is 420K. Estimated value now is around 440-460K. Amount owing is 380K (286 Fixed and 94 variable). Paying P & I of 2,695/month.
Got a balance of 5K in our Offset account and 9K available for redraw.
As we don't have enough amt for deposit for an IP and no equity, someone suggested we rent out our PPOR which would improve our cashflow. Possible rent income is 490wk and then we can rent somewhere else for 375/wk. However, a financial adviser told we can save almost as much if we stay in our house and pay interest only on our loan.
We'll be saving around 4K more if we rent compared to staying as is and paying interest only.
Appreciate your advise/comments on this. Many thanks in advance.
