Agree with Solomon – it can add quite a bit of value. We’re getting our latest property rendered in a couple of weeks time – I’m confident it will add a fair bit of value.
Ours is being done by a friend so can’t really comment on how much it should cost.
How are you structuring the loan for the 2nd IP purchase?
Was the approval of $420k from one lender or from a broker? If the former, then you might want to look at having your borrowing capacity evaluated by a broker who has access to numerous lenders. Who knows – you might be able to purchase a house after all.
Keeping in mind that I’m not an accountant and would always insist that you seek professional assistance, I believe a valuation would only be necessary if you lived in the property and converted it into an IP down the track. If this were the case, then a high valuation at the time it becomes and IP would be beneficial.
In Wagga, the DOH properties are auctioned off by LJ Hooker (I think they might have an exclusive agreement with DOH). I’ll try and track down the last email I received from LJ Hooker with their upcoming DOH auctions.
Nice one Steve. Are the 10 other properties in the Wagga area as well? Hopefully the renos increase the val to around the $160k mark which will give you around $40k in equity to access….enough for a few more 90% lends on $100k properties
managed to catch ross greenwood on the today show the other morning giving this a wrap search for RPDATA on facebook the click on the free property valuations might be handy on your property research
As the subject suggests, all the savvy investors can you please advise how do you manage time
My iPhone I don’t know what I’d do without it. I track my to do lists, catch up on emails, schedule meetings and even use it as a GPS. You can even use it for IP searches.
This is my first post and am relatively new to the investing arena. Has anyone got an opinion on the hunter Valley as a developing hot spot? I have heard and researched a bit about musswelbrook and the infrastructure going in and the increasing production planned for the mining sector etc and it all sounds positive.
Ant thoughts would be appreciated. Thanks
I must admit – Musswelbrook has been popping up quite a bit these days. I think Terry Ryder gave it a mention recently in one of his many reports.
I have already identified 3 – 4 areas I am interested in investing in, I've started to research them – however when I have saved another 20% deposit (in 3 – 4 months) I want to be sure I get a good deal.
As an expat it’s possible to take out a 90% loan (meaning you require less of a deposit – this should help you reach your goals).
Some BA’s charge a fixed rate, some charge a percentage of the purchase price. Try Andrew Allen who posts on here – he’s a buyers agent in QLD and is a regular contributor to this forum and others.
Do you anticipate ever turning your next PPOR into an IP? If so, I wouldn’t pour too much money into the loan at the start (it will reduce the level of deductible debt – which isn’t ideal if this property is ever converted into an IP).
I’d also look to keep some of your cash in an offset account – just in case cashflow is an issue, it’s always good to have some money available.
Hmmm….personally, I wouldn’t be rushing out to buy another IP right now and I can totally understand why the idea isn’t all that appealing to you right now.
To answer your question, yes – you’d have to disclose all liabilities whether you’re purchasing an IP or a PPOR. Having two IPs under your belt (one if which is so negatively geared) will impact on your borrowing capacity when purchasing your PPOR. Obviously it’s also dependent on your income and any other liabilities.