Generally speaking, you can do more with a house (in my opinion) than a unit.

With a house, there's more scope for structural change. You can add an extra room, extend, build a granny flat, render, landscape, etc.

You can still make huge improvements to units – just make the work that any work requiring body corp approval is actually approved.

Having said that, I wouldn't restrict yourself to either type – I'd just go where the numbers look good and what fits with your strategy.

Cheers

Jamie

Yeah I think the $51k mentioned above was to cover the min deposit plus costs.

Just be careful if taking out a 95% lend above $500k – the LMI will be through the roof and depending on the lender, may not be able to be capped above 97% LVR in total.

Cheers

Jamie

Without knowing the specific of your situation, your incomes alone should place you in a good position to meet the repayments on a $500k mortgage.

Having said that, I don't know what your spending habits or existing liabilities look like.

Cheers

Jamie

It depends on how much you’re wanting to pay for your property as well as the LVR that you’re comfortable with (which ties in with how much mortgage insurance you’d have to pay).

Some people don’t have an issue with using a 5% deposit and copping a large LMI premium while others are more risk adverse and prefer to come up with a larger deposit. There’s no right or wrong – just different attitudes to risk.

I didn’t have an issue with using a 5% deposit on my fist property many years ago. That same property helped me establish my current portfolio.

Cheers

Jamie

Obviously some common sense needs to apply here. I wouldn’t encourage someone to build a granny flat while having a YouTube vid playing in the back ground.

For simple, basic DIY stuff it’s fantastic.

Cheers

Jamie

Hi Shell

A new property won't necessarily value better than an older one. There are a lot of different factors that come into play with a valuation that aren't dependent on the actual property itself – they include a number  of market conditions in the area such as the direction of the market, how volatile the market is and the local economy.

Another agent isn't going to provide much of an insight into the value of a property that they're not selling.

An upfront valuation is possible depending on the lender – but it might not be a good look from a negotiating perspective because you may come across as looking overly keen. It's just my opinion anyway.

Cheers

Jamie

Yes, yes and yes if set up as a separate loan split.

cheers

jamie 

You need to base your offer on what you believe it's worth and what you're happy with paying.

It should be based on a comprehensive due diligence process that involves assessing comparative sales within the area, the demand for the property, the sellers motivation for selling, the condition of the property – the list goes on and on.

Use the REA's price as a guide only.

Cheers

Jamie

Lol good point!

Cheers

Jamie

No worries.

I can't see why you couldn't redraw those funds unless the loan that's been set up doesn't have that capability. 

Cheers

Jamie