….well I guess 15 is better than 20 :-)

Hi Mah

Just make sure that the bank you’re dealing with will offer a loan approval for a 6 month period.

Cheers

Jamie

There are some lenders that will do a 90% loan without having to demonstrate genuine savings. However – I personally haven’t written a loan where the client’s use a personal loan to cover deposit/costs for a while….so not entirely sure if it will fly but can’t see why it wouldn’t.

Cheers

Jamie

Hiya

I guess the obvious response is to look around where you live since you’d like to reno the property yourself – you don’t want to travel too far.

Which city/town are you in?

For what it’s worth – I think it would be quite tough renovating and selling cheap properties for a profit. I think you’d be better off renovating, holding and…[Read more]

No – not really.

You’ll have a large non deductible debt (Umina) and a small deductible debt against your previous PPOR (now IP).

Might be best to sell the PPOR (CGT free) and then place the funds against Umina (perhaps in an offset just in case you decide to rent this place out later).

In any case – talk with a good accountant about your…[Read more]

Best to use an inflated rate when calculating the anticipated holding costs. Rates are at historical lows at present – so use a rate of 7% which is closer to the long term average.

Cheers

Jamie

I think the “just do it” mentality refers more so to not getting trapped into over anyalsying absolutely everything which ultimately leads to not taking any action at all.

Agree with not applying with lots of different lenders – that can wreak havoc on your file.

Cheers

Jamie

Agree with Corey – you’re going to have to look into overseas funding. Perhaps hit up Richard Taylor who spends time in the UK – I think he might invest their too.

Cheers

Jamie

Paint
Tidy up gardens
Detailed clean inside/out
Allow pets

A 20% deposit isn’t mandatory – some lenders still do 95% loans.

Some states have attractive incentives for FHBs too. Look at ACT and NSW for instance – if it’s a new property you might get the FHOG and not pay stamp duty.

Cheers

Jamie

Hiya

Is your loan set up as interest only or principal and interest at present?

Cheers

Jamie

Yes – always get an upfront valuation done so you know exactly how much equity can be released before proceeding. Most lenders provide them for free. Some will simply go off a desktop assessment.

Cheers

Jamie

Because they should have done more precise calculations of your borrowing capacity upfront.

All of it would be deductible though given that both loans are being used for IP purposes….the biggest downside of course is that you’ll be using up a large chunk of equity so you may not be able to purchase again.

Cheers

Jamie

Hiya

All comes down to what’s on your credit file. There are non conforming lenders that might consider.

Cheers

Jamie

Hi Curtis

Generally interest only – particularly if you have an owner occupied loan or other non-deductible debt.

If you have no other debt- then interest only is still usually best. Link up an offset account to the loan and park all your spare cash in there.

Cheers

Jamie

Hit up DT and Corey – I’m sure they’ll be happy to arrange :-)

One week isn’t too long. Have you had any interest at all? If you have no luck after the second week then I’d look to reduce.

Cheers

Jamie

That’s the issue right there – it’s ONE bank.

Speak with a decent broker who specialises in IP finance structuring – you’ll likely find out that you can do more.

Cheers

Jamie

Hiya

It’s impossible to answer without knowing the specifics of your situation.

Who said you couldn’t borrow? Was it a bank or broker? If a bank – they will be restricted to their own borrowing capacity calculator whereas a broker will have access to many lenders.

Cheers

Jamie

Savings, equity or a combination of both.

The first property or two are usually the hardest. Hopefully CG kicks in after and you can release equity to rinse and repeat.

Cheers

Jamie