Give it a go – just don't let them know that your LVR is above 80% because they'll know that the cost of refinancing to an external lender due to LMI charges will deter you.

If they mentioned that you paid LMI previously, tell them that the properties have been renovated and are worth more now

Joe – pretty sure that it's all documented but I wouldn't let it stop you.

Cheers

Jamie

I've personally requested rate discounts with CBA twice on a couple of loans and each time they've agreed – they even waived the package fee for a year.

Agree with Mick – try again later.

Cheers

Jamie

I haven't head of them. What were they trying to sell?

Just looks like one of those one stop shops where they sell and finance the property. Personally, I like to keep these transactions separate.

Cheers

Jamie

Yep, it's a pretty sharp rate. 

STG just dropped their 1,3,4 and 5 year fixed rates as well – not as low as 4.99% though.

Cheers

Jamie

Awesome post from D Wolfe.

7 months on the market is a long time – unless they're not strongly motivated to sell, you should be in a good negotiating position.

I would disregard the asking price and work off the figure that you think it's worth – which should be based on a comprehensive due diligence process, which D touched on above.

Cheers

Jamie 

Hiya

It comes off your taxable income.

ie. if you earn $100k a year and claimed $5k depreciation on a property – your taxable income would be $95k.

Of course that's a very basic example though – there's a heap of other claimable items when it comes to IP ownership.

Cheers

Jamie

Hi Kat

Following on from Paul's post, the general rule is that if you're planning to turn your PPOR into an IP – then it's best to set up the repayments as interest only now so you can preserve your future deductible debt. This becomes more important if you have other non-deductible debt (personal loan, car loan, credit cards, ect) that can be paid off first and/or if you're planning on owning another PPOR at some point in the future.

If your only debt is the PPOR (soon to be IP) then place all of you spare savings into the offset so you can reduce your immediate interest repayments. When it comes time to turn it into an IP – you can move the funds back out of the offset and bolster your deductible debt. This works particulaly well if you're purchasing another PPOR – because your reducing non-deductible (PPOR debt) and increasing tax-deductible IP debt.

Make sure you get a valuation on the property when it becomes an IP as well. It's important for working out future capital gains tax if you ever decide to sell it. 

Cheers

Jamie

Depends on the lender.

Some allow upfront valuations for free – NAB, Homeside, St George, AMP, ANZ, Advantedge…I'm probably forgetting some, will do this.

Others won't charge for the valuation but will require you to submit a loan application upfront before the valuation is ordered.

There's not too many lenders I can think of that would charge you for a val if you're lodging an application.

Cheers

Jamie

Yep, the rate goes up and the deal goes to Genworth.

If they can't keep it under 90%, then AMP is a no go because LMI probably won't be comfortable with the number of credit hits.

This is so important with AMP. Make sure you write it into your notes to reiterate that LVR is to not go beyond 90%!

Some of the sub 90% deals will still end up with Genworth if they're a little unusual – but for the most part, they should fall under AMP's DUA. You'll also need to provide some decent notes around the busy credit file.

Cheers

Jamie

The last major reno we carried out was a 3 bedroom place and we spent about $15k – including new flooring, paint, kitchen updated, window and light fittings and external render.

Homemade – Jac M knows the area. Probably wouldn't be a bad idea to PM/email her for assistance. 

Cheers

Jamie