Forum Replies Created
Hmm, I didn’t realise that I could combine the reno loan and the IP loan together.
I’ve spoken to my bank this afternoon, and the outcome is I’m not able to refinance due to my current LVR.
I borrowed at 95% LVR, and the bank has advised that due to their policies they need a maximum of 90% LVR for the new loan. It means that my property would need to be valued much higher than it would be worth, so the refinance is not possible.
It’s not ideal, but I do have a plan B so I’m not sitting around worrying about how I’m going to pay off this loan. It just works out to be a bit more expensive.
I’ve learnt a couple of things – make sure you check your loan structure at the start and understand the implications of refinancing. In hindsight, using the recommendations from everyone above would have gotten around this.
On the positive side, the reno is almost done without any major problems and within budget should increase in value regardless.
Thanks again!
Jamie – Thanks for the advice. I'll speak to my accountant and work out what I could do and what the most beneficial choice would be.
Richard – Thanks for the advice as well. That was my original idea, as I thought I could just add an extra amount onto the loan at the cheaper rate. However, I was advised by my mortgage broker that it's better to get a separate loan. Perhaps as my LVR was already 95%.
I'll let the forum know what the result is, in case anyone else has this question as well.
Thanks!
Hi rumrunner,
Thanks for the advice. I guess there's no point in going over what you believe is a good price, even if the vendor doesn't. Looks like you got lucky as the vendor changed their mind!
I was told the other day that the vendor had rejected my second offer with no counter offer. I told the agent that was as high as I'd go. So I'll see how that property goes, maybe they will change their mind, but I'm out looking at others and getting ready to make other offers.
Hi Jamie,
Thanks for the response. I thought that 280k would be an appropriate offer to start with, it's only a 10% discount from the asking price and there's always room for negotiation.
I'll see what happens with this one though.
Thanks
Thanks for the tips everyone! I've started looking up places that meet my criteria and I'll be heading along to my first weekend of inspections (and auctions soon after) to see how it works. I've got a checklist for inspections so I'll take some of those along.
Cattleya wrote:Emails can be changed, for example you can make changes before you forward / print it. Email address can also be fake and some email addresses are from free accounts like hotmail, etc. If it is on paper, you have address, name and signature. Plus nobody can make changes without somehow damaging / leaving marks on it. This is also why emails are not as strong as written evidence in the eyes of the law. Cheers, Catts.Thanks for the clarification. I understand that emails can be changed and aren't as legally strong, but if someone goes to the effort of writing an email to offer a specific amount and conditions, it would still indicate they are serious from an investment perspective?
Also, how else would a written offer be provided other than going into an office and signing a piece of paper?
