I haven’t heard of them – but there are hundreds of one stop shops opening up. What do they do? How much does it cost?

Cheers

Jamie

It’s a crazy approach. If the lender has granted a preapproval previously, and providing there’s been no major changes with their financial situation, then applying for subsequent preapprovals is just silly. Even if the client is adamant they need a new one – the banker needs to explain to them the ramifications of reapplying each month or…[Read more]

Hi there

Sorry to hear about your predicament.

You won’t be able to use a guarantor to assist with servicing (borrowing capacity) – you can only use them to put up collateral (cover your deposit).

If you’re locked into the purchase (you’ve already exchanged contracts) and are required to settle, then perhaps consider purchasing it as an IP. The…[Read more]

I’m mildly obsessed with photography at the moment. I purchased my first decent SLR a little while ago and it’s turned into an expensive hobby.

Cheers

Jamie

Hi Stephen

Which lender is the loan with?

Some lenders will allow you to tap into equity right up to an LVR of 90% without too much hassle.

Hopefully the current lender allows you to order an upfront valuation on the property. This will give you an idea of how much the property is now worth – and how much equity you can access.

This equity can…[Read more]

Hi there

What do you require from a mentor?

There are paid services offered by hundreds of one stop property investing shops – which I’m personally not a big fan of.

The other option is to educate yourself via free resources such as this website, books, etc and surround yourself with excellent professionals (finance person, accountant,…[Read more]

Hiya

You either agree to it or ask them to sign a fixed agreement.

Cheers

Jamie

Hey Chris

If the IP increases in value – either via growth, improvements or a combination of both, you can access this equity by setting up a second loan split alongside the current IP loan. That second loan will fund the deposit/costs on your IP.

So if we take a simple example for illustrative purposes, let’s say you’ve bought an IP for $100k…[Read more]

Hi Chris

Welcome aboard.

It’s each to their own. Personally, I prefer to purchase properties in high growth areas, renovate and hold. These properties are usually neutral or negatively geared slightly.

A property that doesn’t go up in value over time isn’t going to assist in reaching your goal of purchasing another.

The extra few dollar from…[Read more]

Brokers can be used for deals of any complexity – easy and hard. Most don’t charge a free – and we can negotiate on rate, ect on your behalf. Using a broker doesn’t result in the cost being passed onto the borrower – that’s a myth.

All in all, do your own due diligence and find someone you feel comfortable in dealing with – whether that be your…[Read more]

None. Banks are generally more concerned with attracting new business.

Shopping the banks might result in inadvertent hits to your credit file (they might be applying for credit without you being fully aware). A few of these hits to your file in a short space of time can be detrimental – you may find that no bank will be willing to take you…[Read more]

It’s money you receive.

Rent from the investment property is included.

Cheers

Jamie

Yes – it’s possible. You just need to be able to demonstrate that you can make the repayments.

Cheers

Jamie

Spot on.

The suburb I live in was developed for the working classes back in the day. Now they charge $5 for a flat white at cafes and a run-down ex govvy house costs $600k!

Cheers

Jamie

Dangerous advice – in so many ways.

Rate is not the most important factor – structure is paramount. A poor structure with the lowest rate can end up costing you thousands.

Cheers

Jamie

Hi Manley

Welcome aboard.

A trust structure isn’t going to enhance your borrowing capacity.

As Mick said – changing the ownership entity could be quite expensive too.

Cheers

Jamie

Hi newgen

Had a few clients in a similar predicament this week – vals with existing lender coming in low.

For a couple of them, we were able to get decent “desktop” valuations with other lenders which we were able to use for a refinance/equity release application.

Cheers

Jamie

Look at reducing the asking rent for the front house. Most properties will rent – the price just needs to match the markets demand. If you’ve got a unit in the back, you’ll need to charge less for the front house (in comparison to other houses in the area without the second unit) as it will be less desirable.

Cheers

Jamie

That is a cheap personal loan.

What are your longer term plans? Are you looking to purchase more properties?

If your borrowing capacity is on the tighter side, then getting rid of the personal loan may help future serviceability.

Cheers

Jamie

Hi youngm

I guess it’s all relative – 144 vacancies in a smallish town is a lot whilst in a larger one it isn’t too bad.

I’d call a couple of PM’s in the area and have a chat about the current situation. Ask them about how many properties they have vacant at present – and if it’s difficult to source tenants at the moment.

Cheers

Jamie