Need to demonstrate borrowing capacity in order to access it.

Cheers

Jamie

Agree with Corey – a refinance to another lender isn’t an option.

The good news is that both those banks don’t like to lose customers – so call them up and see what they can do.

Cheers

Jamie

Paul Gerrard is great

Paul Gerrard
Accounting & Tax Manager

Price Accounting Services Pty Ltd
http://www.pricefinancial.com.au
Unit 11, 1 Central Avenue
Thornleigh NSW 2120
Ph 02 9875-2444 (61-2-98752444)
Fx 02 9481-0594 (61-2-94810594)

A good BA is definitely worthwhile.

8% of purchase price seems very steep though!

The BA’s I’ve worked with (via mutual clients) seem to charge in the vicinity of $5 to $10k

You’ve had some great BA’s respond above.

Cheers

Jamie

I generally opt/recommend interest only on all IP debt and either P&I/IO on owner occupied debt (depends on the clients situation) – here’s a blog entry on the topic

Cheers

Jamie

Hiya

Could you check out the http://www.homeimprovementpages.com.au/ ?

I’ve used the site before and found it pretty good.

Cheers

Jamie

Banks don’t like them – they generally expect at least a 30% deposit so that says something.

High yields seem attractive – until the management costs quickly erode the benefits.

There’s generally bugger all growth too.

Cheers

Jamie

Sounds like a tough deal to get approved – if anyone is going to do it though – it’s probably CBA.

Cheers

Jamie

Hey Timmy

Plenty on these forums that would be willing to assist.

Cheers

Jamie

Don’t cross your loans.

That rate discount should be on offer regardless of whether the loans are crossed up or not.

If in doubt – get a second opinion.

Cheers

Jamie

I’m biased – but I’d give the DIY a miss (going direct to the bank) and get a decent investment focused broker on board. Shouldn’t cost you anything – and should ensure there’s no hiccups.

Cheers

Jamie

Maybe see if Terry W could help. He’s on this forum.

Cheers

Jamie

You’ll be paying the whole amount regardless – generally best to do it with borrowed funds and maximise your deductions.

Cheers

Jamie

Best not to use your own cash for costs.

Borrow extra for those – and you’ll maximise your deductions.

Cheers

Jamie

It’s the unfortunate reality with OTP purchases.

The developers can typically delay settlement for months – but if you’re not ready to settle when they are, you’ll be hit with penalty interest. They can be quite ruthless!

You could ask your conveyancer/solicitor about options – but in reality, I don’t think there’s a whole lot that can be…[Read more]

Sounds ok.

How much is the new purchase worth?

Will that $100k cover off a 20% deposit plus costs (stamp duty, legals, etc)?

Will you be using the same lender or a different one for the IP?

Cheers

Jamie

As long as there’s no issues with the valuation you should be in the clear. The vast majority of valuations come back at purchase price.

Cheers

Jamie

Is this a seek ad?

A block of land won’t generate an income so unless it’s going to appreciate in value – it might not be a good investment.

Cheers

Jamie

Hi and welcome aboard :-)

It’s impossible to answer. There’s thousands of markets in the country – what works well for some won’t for others.

Your best bet is to get clued up. Read widely and educate yourself. Forums like this are a great start.

Cheers

Jamie