At 90% NAB are still going to want a full val. I think it's worthwhile pursuing but there's still the risk of the val coming back with issues due to the lack of comparables.  Don't get your hopes up but it's worth a crack.

Cheers

Jamie

You could try ordering some upfront vals with other lenders using a different LMI provider.

Which bank said no?

Cheers

Jamie

mattliasiian wrote:
Thanks Jamie I also had a read on your article with Loan structuring on interest only and setting up a offset account it was really informative. It sounds fairly easy I was wondering why not everyone does it this way??

Because they just don't know.

Not many bankers or brokers for that matter have an understanding of the…[Read more]

Hi Nathan

I was just running the numbers for some clients and thought I'd quickly run your scenario before I closed down my software (yes – I'm a finance nerd that needs to get out more).

Good news – your borrowing capacity is much higher than what you've been told. UNLESS you've got some liabilities that haven't been mentioned.

For instance, I…[Read more]

Hi Nathan

Welcome aboard.

Have you approached just the one bank?

Have they submitted a preapproval for you?

If you've only approached the one lender – you'll be at the mercy of their own borrowing capacity calculater. 

All banks calculate max borrowing differently. So whilst one bank says your max is $x another might say it's $y

Any decent…[Read more]

Just start with an informal chat about the sellers motivation, if any offers have been put forward, etc. Just try and gauge how much it might go for and then provide a formal offer.

The process depends on the state you're in as well. For instance, in ACT you might get away with a verbal offer – but in a heated NSW market, they may want you to…[Read more]

Hi Matty

Might be best to call a decent finance person about your options.

Cheers

Jamie

1. If it's set up as an interest only loan and not a line of credit then yep – should be the same or possibly lower if your broker can negotiate it down for you.

2. I usually get them to lower the rate on the new and existing loan on the premise that you're borrowing more.

3. If loan 2 is being used for investment purposes then…[Read more]

Apprentice Investor. wrote:
Thanks 007 and Jamie. Just wanting to start at the lower end of the market for my next IP and looking for positively geared IPs I've found a 1 bedroom unit in a good size town for 45k, its currently rented for $140 A week. The current tenant is planning to stay there for a few more years. The rates are $2200 and body…[Read more]

Why not keep an eye on both markets?

You won't become an expert on every suburb in each city (they're too massive) – but there's nothing stopping you from familiarising yourself with a couple of areas within each city. Start with internet/phone research and once you're keen to make a move – visit them in person.

Cheers

Jamie

Another vote for the house. There's more scope to add value in the future. There's not a whole lot that can be done with a one bedroom unit.

Cheers

Jamie

Agree with above – there's often other avenues to consider before bridging finance.

Which lender is your current loan with?

Best to speak with a broker/banker about your options. A decent one will outline a few options and the pros/cons of each.

Cheers

Jamie

A splash of paint is a cost effective way to add value. It doesn't really help with durability though.

Stick to a neutral colour!

Cheers

Jamie

The thing I dislike about new properties is that the vast majority of the time there's middle men making large profits – and it's the buyer that's paying for it…..and if it's an off the plan property, that comes with a whole other set of risks to consider, especially if the development isn't due for completion for quite some…[Read more]

Hi there

Any reason why you have to sell? Looks like you've got some equity available in the first property that you could possibly access to fund the deposit/costs on another property.

Cheers

Jamie

Tiles are so much sturdier in an IP.

We just put down some bamboo flooring in our PPOR and I cringe every time I see our 9 month old drag one of her big plastic toys across it

Cheers

Jamie

dezability wrote:

Now what I don't understand is (and it only occured to me just now), how come we are going through a lender when we have usable equity to borrow against in our PPOR? Isn't it just a case of going up to our current bank and getting them to write a cheque type thing?

Hi and welcome aboard

There's a couple of ways to do…[Read more]

Apprentice Investor. wrote:
Thanks Benny I've booked in to see a MB next week. Cheers

Best of luck. Don't hesitate to post back on the forum if you're worried about anything.

Cheers

Jamie

Qlds007 wrote:
Would love to come along but i think i miss out on the age policy?

Cheers

Yours in Finance

lol – they're open to others on request. I think they might just accept you.

Cheers

Jamie

Hi AM

I'm with Richard – I guess you could do it but I can't really see any huge benefit from doing so.

Cheers

Jamie