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  • Profile photo of Denny CraneDenny Crane
    Member
    @denny-crane
    Join Date: 2011
    Post Count: 5
    March 21, 2012 - 11:31 am

    Thanks,

    As I said a bit of a stoopid question, but some good discussion ensued. Given that we haven't had to worry about connecting electricity in our PPOR for about 10+ years and before that things were a bit different as they used to actually come out and disconnect from memory…..

    Cheers,
    DC

    Profile photo of Denny CraneDenny Crane
    Member
    @denny-crane
    Join Date: 2011
    Post Count: 5
    September 29, 2011 - 11:05 pm

    Thanks for the great advise.  I am a little confused about borrowing deposit from PPOR.  How does this work?

    Is it – I borrow 80% of IP value + draw on PPOR for 20%?  Could I draw on PPOR more to include some reno costs or mortgage repayments whilst it is untennanted?  Or is this unwise?

    Off to hound the real estate agents and check out open houses this weekend to get a feel for the market in the area.  Can't wait!

    Another scenario – I have a friend who has just left his wife and is looking at temporary accommodation whilst he sorts out his finances and settles into his own place.  If he lives in my IP for very cheap rent in exchange for me accessing property to reno, would the banks need to know that?  Could it just be 'cash'?

    Profile photo of Denny CraneDenny Crane
    Member
    @denny-crane
    Join Date: 2011
    Post Count: 5
    September 29, 2011 - 8:44 am

    Thanks Jamie and Michael – I see you both are very active here.  I was hoping to attract some solid advise.

    A couple more questions please…..

    Is it better to use cash as a deposit or save it for reno costs?

    Can you include the reno budget in the borrowing of the property?

    If I was to borrow 100% what are the risks?

    I have read that you should buy a property that requires no more than 10% of purchase price as a reno budget.  How true is this?

    I am cautious as a first timer, and was thinking of embarking on only cosmetic renovations for my first purchase.  Such things as paint, garden make over, carpet, tiling, door knobs, bench tops, basic appliance upgrade (oven,stove, air con).  Is this really worth it?

    ok – that was more than a couple!

Viewing 3 posts - 1 through 3 (of 3 total)