Thanks for the heads up Daniel.

Forum members need to click on http://propertybuzz.com.au/?p=13 to learn more
and watch the you tube video as it is a hidden function on Google maps
unless you follow the instructions on the "you tube video" because the
 link to google maps real estate doesn't automatically come up on the screen.

There are a number of ways a bank valuer does a valuation.
One method is called a drive by . They drive by and do a valuation from the road
Another method they go into the house and look at it inside and out
And another method is from a plan usually for houses under construction.
The bank use a panel of valuers. You may be able to convince the bank to do another valuation with a different valuer from their panel of valuers but it might cost you a fee. This may get you a better valuation but it might not.

Due to what has happened in the Global property market and in the USA,  valuers are worried or being conservative about giving high valuations as they could be held responsible by the bank  if the value turns out to be over optimistic and there is a down turn in the property market values.

see
moving house
http://www.ato.gov.au/individuals/content.asp?doc=/content/36888.htm
6 month period of time cgt exemption could be on both properties
See section titled moving house .

Bec and Troy I haven't had experience in this but this product looks like a possible solution to your problem
Can you use this product instead ?
http://www.grass-reinforcement.com/index.php/products/description/bodcell-tree-root-protection-geocell
see
Australian reseller
http://www.boddingtons.com.au/PDF/Bodcell-CASE-STUDY-RCTAYLOR.pdf

What about a line of credit loan against any possible existing equity in the investment loan up to 80% LVR.
What you need to consider is the interest cost of the personal loan against a line of credit loan probably at housing interest rates.
Say 12% on a personal loan as compared to 5% to 6% on a line of credit loan.
say $115 on a personal loan as compared to $48  to $57 on a line of credit loan per week.

Daniel  – I think you might mean the below mentioned method..
What you are possibly referring to thinking of is an offset account that your wage and rent income goes into and you pay your bills from the credit card and pay off the credit card before the interest free period runs out. This offset then reduces your home loan interest charge.

or are you thinking about the transferring of one credit card to another credit card that some other bank offers . Unfortunately this is only offered to credit rather than cash advances. This is the catch with your idea in that cash advances do not have the interest free period and interest is usually charged straight away from day one.

Another thing to consider is it worth while spending 49,000 on a car that is going to be worth a lot less in five years time.

What is the insurance, council rates, Water rates for the IP cost you as you would be paying for these expenses . I will guess a figure of $3000.
Lost Rent = 14800
Expenses = 3000
Total = 17,800
Cost per week = $342
If you purchased the property after 2000 and rented it out you may be elligible for First home owners grant you need to look into this.
If you move in you need to get investment property valued by a valuer as you are changing the capital asset status from investment to PPOR and this is a CGT event. This makes it easier to work out Capital gains tax in the future for the time it was an investment.
As PPOR is exempt from CGT
So
Purchased –
Cost base = Purchased Price
Change of status
Capital Gain = Value valuer noted it as – Cost base = Capital Gain
Future sale proceeds – Value Valuer noted it at = Exempt capital gain
 

The main thing is can you pay off the principal quickly? Rather a better scheme is to pay enough off them to get them cash flow neutral. So they do not cost you any money out of your pocket to hold them with a tenant in them.
It is hard when you first start. It takes time for property values to increase and rents to increase and most of the repayment is interest.
The other method of doing renovations will put you into debt to afford the renovation however depreciation can be claimed on fittings. But you probably will only get an LVR of 80% so it relies on capital growth if you do not achieve growth you end up with a big debt or not being able to borrow more.
another strategy could be to get the LVR down through repayment and increase in capital so that house number three will not strain the LVR too much.
It depends on what has caused the borrowing limit is it LVR or capacity to repay loans?
.

The term redraw refers to a mortgage so if you redraw – you borrow back money that has been over paid off your mortgage.

Taking money out of your MISA account is like taking money out of a savings account.
So you start to pay interest on your PPOR purpose loan. So the loan is not for a investment purpose.
So the loan cannot be deemed as being an investment loan.

The purpose of the loan has to have a direct nexus with the income producing expense incurred.
Nexus means direct relationship it is the term used in the ITAA 1997 tax legislation.

Rather better idea might be to take out just enough out of the MISA account to cover the deposit and purchase costs for the investment property with another mortgage for the rest of the money needed.

Then you can claim say 80% of the new mortgage interest costs ( if LVR is 80%) as an investment property expense.

You then have a small interest cost on the PPOR that you would want to pay off ASAP the 20% into the MISA to build it up to over 500k again.
Be aware if the PPOR loan is <500 k the MISA cant' be 500k as it has to not exceed the loan amount.

The interest you are saving from the PPOR is non tax deductible interest.

A line of credit loan usually can't be done on a linked offset mortgage.

Nate welcome to the forum.
Your question is hard to answer what you need to be very aware of is your investment goals.
Are you wanting to make a quick profit?
Are you a buy and hold type of investor if yes then what is the likely capital growth ?
What sort of renovation works does it require as structural or roof repairs usually do not increase the value?
Are you planning to on sell it after renovation if so what are similar properties that are renovated selling for in this suburb?

if you are selling it after renovation work always calculate profit backwards.
Profit = (Future possible achievable market price sold for) – (renovation costs) – (purchase costs) – (bank interest on loan )

Note: bank interest on your investment loan is a holding cost and if your project takes longer than expected it increases !
As you are new have you read a lot of books as knowledge is a great thing to build on.

With the house you are living in you could get it valued by the bank and take out a line of equity loan up to 80% of the value.
So if the house you are living in is worth say $473,000 then 80% is 349,000 so subtract what is owing 173,000 leaves you with $176,000 you could borrow as a line of equity for investment loan for deposit on another investment property.
Or you could secure investment home against it with living in home value.

line of cred it seperates your live in home from an investment purpose loan for tax purposes.