Hi there

The bank won't knock back a loan application because you intend to reno and sell.

Mortgage brokers receive a claw back on the commission the lender pays if you sell the property within the first 18 to 24 months.  That may explain why you received the advice you did…..that's only speculation though.

Avoid shopping – it can cause more harm than good if each of the enquiries end up on your credit file. 

Best of luck with your first property – it's an exciting time

Cheers

Jamie

Hi and welcome aboard

Do yourself a favor and contact Terry W on this forum. He's in Sydney and will be able to assist with the structure and answer all the questions you have. http://www.terryw.com.au/

Cheers

Jamie

Hi Susan

This looks ok to me – the property type as well.

Can't see why it couldn't be done.

Cheers

Jamie

Oh well – best to lose a few hundred on a building/pest inspection then lose thousands on a dud property.

Seems a bit dodgy that problems are already presenting in a new build.

I don't know which lender you're dealing with but you may get away without paying for the val – if it's a major then you should.

Cheers

Jamie

Agree with Mick – it's probably too early to warrant a call to the insurance company.

Just make your the PM is being proactive and is following the processes applicable to rentals in your state.

Cheers

Jamie

Good point.

That book has good criteria for basing your search around. You don't necessarily have to use all 20 that are recommended – but can cater your own search criteria around the ones that she lists in her book.

Cheers

Jamie

Yes you can turn your current property into an IP.

You might want to covert the repayments to interest only if you're planning on purchasing another owner occupied home.

It would also be an idea to have the property valued now so you know how much it was worth when it became an investment property. This is important if you ever sell it and are required to pay CGT – the valuation will help your accountant work out how much CGT is payable. Hint – a high valuation comes in handy here.

You can use the equity in your current home (soon to be investment) to purchase another owner occupied home – but the equity that you use won't be tax deductible (because the purpose is to purchase an owner occupied property rather than an investment).  

For that reason, you need to structure the loan carefully so you can identify which debt is tax deductible (the current loan securing the current property soon to become an investment property) and which loan isn't tax deductible (the equity that you extract to cover the deposit/costs on your next owner occupied property).

Please also make sure that the broker/banker you decide to use doesn't cross collaterise your investment property with your owner occupied property.

Hope that helps.

Jamie

Hi young j

I can't specifically answer the question but there's a decent list of research websites here that might be of assistance.

Cheers

Jamie

Personally, I would look elsewhere – cheap doesn't mean good.

You can get decent yields closer to civilization.

Cheers

Jamie

Refinancing to a more competitive rate is another way.

Cheers

Jamie