And to afford the occasional good one themselves – they need to do a good job and help their clients buy suitable properties for a long while to build up their income/savings. ;)

You can always assume the worst in society – but we didn’t get this far as a people without people doing the right thing for the most part.

It looks like your existing properties are slightly below 80% LVR. How are you paying for the deposit for the new purchase? If you’re looking at releasing equity it will be dependent on the current lender whether they will allow this as there has been a large number now denying the ability to release equity above 80% LVR.

Based on this scenario the balance would be to work out:

*how you are paying for the deposit on the new property – if via equity whether the existing lender will allow this, or do you need to go to another lender
*is the existing structure appropriate – if any changes need to be done whether this might need to be done before you buy IP3 and potentially then run out servicing/ability to make any changes
*whether IP3 needs to be with another lender, or the same (borrowing capacity, cost considerations etc)

I wouldn’t necessarily split the loans up as 1 property/loan per lender as this is overkill and is generally a novices understanding of risk mitigation. Definitely avoid cross collateralisation like the plague, but you can still build a good initial portfolio putting more than one loan with the one lender should it be structured correctly to fit your needs not the bank.

Good luck, getting the right a lot of the time is in being able to trust your adviser.

I think you’re over thinking it a little bit. It’s all fairly simple – just look at what properties are on the market/recent sales and compare any property you’re considering against those. Yes you’ll have to factor in the minor differences of the factors, but this is relatively minor.

If you try to come up with some abstract ‘intrinsic value’ for a property – you’ll probably find you’ve spent too much time, came out with an inaccurate figure and when you offer it to the agent you will get knocked back.

You’ll find a lot of these figures will be able to still be accessed from most property data sources like Pricefinder, though not to the same degree as residential property. Otherwise RPData/Corelogic.

Draw out all available to 80% LVR and then store the funds so nil interest charge until used.

Then for the subsequent purchase purchase at whatever the most appropriate LVR (80%, 88%+LMI) etc and then you’re set.

It’s best to draw out the equity while you can, as serviceability decreases with each purchase you may otherwise find yourself with equity you cannot draw out and then you’re stuck.

Likewise lender regulatory risk is a real thing with the significant policy changes ever coming through. We’ve seen a number of lenders reduce their IO terms available and LVR’s which interest only can be taken – so it would be best to get this sorted ASAP whilst you can.

The key is understanding that cheap doesn’t equal good. Insurance profitability vs likelihood of making claims – so if they’re offering cheaper premiums where are they making the money?

There are still good cost effective options out there – but the number 1 thing you should be looking at is what you’re actually getting for your money in terms of the PDS.

It’s completely normal. The valuation for a purchase is completed with a contract of sale – generally signed with exception to NSW etc.

They’re not going to do a pre-auction valuation, there’s no point to it. You’ll find mortgage manager products are generally pretty restrictive too in these regards.

Simple- consistent rollback of planning laws which will increase supply creating greater affordability, but also increase the quality of stock options available. (not having to cram yourself into an apartment/small block – but can live on larger blocks of land etc.

Look at Houston for an example of how this can work.

I hear a lot of people say lines about waiting for the next budget, next RBA update, next report – and five years later they still have no properties and waiting for x to happen.

In the end there will be some form of uncertainty in life – that’s part of the risk on taking any action. If it’s a good investment and you believe it will do well, you’ll just have to ask whether you want to take the leap.

I think I’ve heard reference to government stating they will make changes to the next budget for housing affordability for years upon years.

Nice high voltage power nearby too as well – if you can walk away from this it might be the best option.