Forum Replies Created
With a development it would be easier to place an end value on the project – I doubt this is the case with renos.
I could be wrong.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Michael makes some good points.
I'd just add that LMI doesn't need to be viewed as a bad thing – I wrote an article for API magazine on the subject here
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Some banks will let you go up to 95% + LMI of the current value. I don't know of any that will lend on the end value of a reno.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Hi Tuggerwagh
What's the owners justification for removing the carpets?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Nice work Engelo – that's a sweet deal. I'm sure Nathan is very proud
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Badlee1 wrote:The issue I have is that the lender I have spoken to are more than happy to do this for me, but my accountant says I am unable to do this due to tax reasons???It sounds like you can do it – it just won't be tax deductible.
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Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Hi Avena
Welcome aboard.
I have no doubt you'll find the forum useful.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
BMW wrote:You might want to check with a few local property managers, In Dubbo many of the property managers won't take on properties in high density housing commission areas.I was speaking with someone about Wagga IPs the other day and they mentioned the same thing with PM's up there.
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Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Orange has been a bit of a hotspot for some time due to the mining.
With the cheap housing, I think some of them are restricted to certain purchasers (ie. not investors).
I think it's one of those places where it's probably best to hit the ground and scope it out yourself.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Hi Chris
Welcome to the forum.
It's possible. It just depends on your asset/liability situation, borrowing capacity and a few other things.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Interesting indeed – they left out the capital city though
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Sundance
Welcome to the forum.
Sundance wrote:The bank has given the go ahead for us to borrow 100% on our first investment property interest only to enable us to get into the property market now instead of waiting for our land to sell as we originally intended.Terrific – just make sure that they don't cross collaterise your unencumbered home with your investment property. The bank will probably try and use your entire home as collateral for your investment property. This is in their best interest – and not yours. You don't need to use your entire home as collateral for your next purchase.
Sundance wrote:Once the land sells, and after CGT, we intend to put half the proceeds into the offset account against the investment property and use the other half as a deposit on a second investment property.I would consider borrowing the deposit for your second investment rather than using cash – that way, the entire debt is deductible.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi KH85
Welcome to the forum.
Purchasing the property as a PPOR can be beneficial given the concessions available (as you already know).
In terms of whether the bank will lend to you on the basis of it being a PPOR or an IP will depend on your borrowing capacity. A decent broker will be able to look into your situation and advise accordingly.
If you do purchase as a PPOR and intend to convert it into an IP after 6 months, then it's important you structure the loan correctly from the start.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Teds
Is the property you’re looking to sell in the same location as the one you’re wanting to buy?
If so, would you consider using the same agent that’s selling the properyt you’re interested in? If this is the case, let them know and I’m sure they’ll do their best to insure you get the property (because now they have two listings).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Hi Nick
Investors refi all the time but it’s usually not due to the rate. It’s usually due to their current lender not being conducive to their investing needs or because a messy structure has been set up from the start.
Depending on your current borrowings and LVR, you might be able to negotiate a lower rate with your current bank with the threat of leaving.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
goldies wrote:So turns out CBA's lending policy no longer suits me as an investor. Had discussions with Broker and we have a plan to get this purchase through and then we will head elsewhere to another bank who takes into account 80% of rental income, not a significantly lower amount….Hi Goldie
Good to hear that it's been sorted (for this one at least).
Yep, sounds like it's time to move away from CBA. There are lenders that will take into account 100% of the rental income if the deal meets certain criteria.
There are also lenders who will take Other Financial Institutions (OFI's) debts at their actual value (not at an increased assessment rate) which can be very helpful for those nearing the serviceability wall.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
jayhinrichs wrote:Let's stir something upWhat did you have in mind exactly????
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Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Hi Goldies
I understand the frustration – we deal with this type of bank craziness all the time.
I recently wrote a blog entry on how investors can improve their borrowing capacity. Do any of these work for you?Article here
If it is ANZ, the good news is that there are quite a few lenders out there with more generous ways of assessing your borrowing capacity. Your broker will need to choose carfefully though – you only get so many cracks at it.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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No, it's not true.
Your borrowing capacity will be the same irrespective of whether the purchase is under personal names or a trust.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If the LOC has been set up and used purely for this purpose than yes, the interest will be deductible.
If you have one LOC covering your PPOR and your deposits on investment properties, it's messy and dangerous because you will have a hard time trying to apportion your deductible debt from your non-deductible.
Therefore, if setting up a LOC, it's ideal to have have it set-up as a second loan against your PPOR.
Generally speaking, an interest only loan with offset will provide the same result as a LOC at a lower cost.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
