Hi there

What’s your current property worth?

Did you pay LMI on it previously?

How much are you looking to spend on the next property?

Cheers

Jamie

Hi there

What’s your current property worth?

Did you pay LMI on it previously?

How much are you looking to spend on the next property?

Cheers

Jamie

Which bank doesn’t regard rental income as a legitimate form of income?

All the lenders I know of take anywhere between 75% to 80% of gross income.

Cheers

Jamie

1. Probably for the first year – ask your accountant to confirm
2. Don’t cross collaterise the properties. Release equity against one to fund the deposit/costs on the other

If in doubt – get a decent finance person to sort it out for you.

Cheers

Jamie

The bank will generally want to keep LVR at 80% – so if remaining property has been valued by them at $330k then remaining loan should be $264k. So if it was $500k initially – then you’d probably need to pay $236k…..so not sure why they’re asking you to pay $340k unless the property is in a high risk postcode with a restricted LVR

Cheers

Jamie

It depends on what you’re aiming to achieve.

I work mainly with investors – and a lot of them (particularly those starting out) leverage at 88% + LMI. The LMI is deductible and they can borrow more with less which enables them to be more aggressive with property acquisition.

If you’re looking to hold onto cash for renos – then work out what…[Read more]

Hi Gavin

What sort of work do you need? Is it conveyancing or something more complicated?

Cheers

Jamie

Agreed.

Your existing lender should be your first point of contact – look at ordering an upfront valuation first so you can determine how much equity there is to access.

If the valuation comes in low then consider ordering another via a different lender- in the hope of getting a more favorable result.

Cheers

Jamie

No – there’s a few still with generous borrowing calcs. Not sure how long they’ll last for though.

Just need to start looking outside of the mainstream.

Cheers

Jamie

What sort of default was it?

Cheers

Jamie

You’re banker doesn’t have a clue :-(

Speak with an accountant rather than a banker on taxation matters. The banker isn’t going to help you when the ATO come knocking.

What they’ve suggested you can do is incorrect.

Cheers

Jamie

Your husband is spot on.

You can’t take out an investment loan against the property now – unless you use the funds from the loan to actually invest. Only other thing I can think of is a possible spousal transfer but that’s likely to come at a cost.

However – you can access equity in the property to fund the deposit/costs on a new home in your…[Read more]

Whoa – that’s crazy!

Although – I’ve got an IP in Canberra where rates are circa $3k p.a and land tax is around $5k

Cheers

Jamie

AirBnB can work out well.

Only problem is that banks won’t take into account the income generated from an Air BnB property unless you can show a year or two of tax returns. With a normal rental – they only need to see the most recent rental statement or a rental appraisal from a local property manager.

Cheers

Jamie

I’m not a fan of OTP at all.

You generally pay a premium – and have to keep your fingers crossed that the valuation will actually match the purchase price upon completion.

I can’t speak for the Perth market – I haven’t seen a great deal of OTP from the west coast. However – Melb OTP gave us headaches in 2016. Had a few valuations come in much…[Read more]

There’s nothing wrong with buying in a lower socio economic area providing you’ve calculated the risks involved – and not all socioeconomic areas are the same either!

Generally speaking – if you can land an IP in an area that’s prime for gentrification then you can experience some decent growth. Same deal with some fringe areas of capital…[Read more]

Nice post!

We’ve got a few property related links on our website – not sure if they’ve all been covered above.

Link is here- http://www.passgo.com.au/property-data-websites

Cheers

Jamie

Hi Woodlin

Welcome aboard :-)

How are you calculating the equity that you have available?

Generally speaking – when accessing equity we set up a second loan account with redraw. The surplus funds are then dropped into that redraw account at settlement to be used to cover the deposit/costs on your future IP. The benefit of this approach is that…[Read more]

Hiya Lisa

Do you need a financial planner or an investment savvy mortgage broker? To me – it sounds like the latter is required.

Cheers

Jamie

Staging works wonders for the right property.

Some basic cosmetic renos – paint, new flooring, etc can also help.

Cheers

Jamie