Forum Replies Created
Hi Greg, Thanks for such a detailed response, are you a Mortgage Broker yourself? Based on my current calculations, the rough figure of 350k is based on similar property’s in the same area, I have received quotation from a property valuer to get a more accurate number at a cost of around $500, does this sound reasonable? The other costs I need to consider is legal and stamp duty, I have estimated around $1200 for legal, I know stamp duty is 3k and Mortgage Registration fee around $200. There is some other costs like ½ a fence, concrete drive way and landscaping. (con d-way and landscaping will be done by myself and my dad) so might save a bit of money there, so all up for that I’m estimating around 6k. You mentioned LMI at around 7k, is that just an additional cost associated with the loan until the LVR gets below 80%, how do they work it out? Is it a % of the original loan? At this stage we plan to get to 3 IP’s as quickly as possible, therefore as you and others have mentioned, choosing the right lender for our first will be critical. We will be looking within the price rage of 300k-350k for our 2nd and 3rd IP’s. I will be looking for an experienced MB and will be hoping to use someone from this site due to their knowledge in IP’s and because of the help that has been given to me thus far. Feel free to contact me directly through email if interested, [email protected] Thanks, Jules
Linar wrote:Having said that, it is not quite so simple. Assuming the house is valued at $350,000 on completion, and you have a loan of $224,000 against that property, you would have 56K equity as a bank will only lend up to 80% LVR. KThanks everyone for you comments,
This is the part that throws me, your saying that i can only lend 80% of the loan = $44,800 or 80% of what the property is valued at = $70,000? or do i just have 54k of equity because that is 20% of the original price of the property (20% of 280k = 56k) ??
I was thinking that putting our first IP under my partners name due to her paying more income tax than me. Then, putting our second IP under my name giving me tax benefits. Or will this cause problems in terms of serviceability?
Why is it harder these days to pull out equity?
Linar wrote:I would use the equity for deposit and legals. Get pre approval for a separate loan for the purchase. Best not to cross coll if you don't have toKDoes this mean you have one loan for first IP, then pull equity out for deposit and legal’s for second IP and then create a new loan for that. I think im getting what Cross Coloration means, when you have one loan servicing more than one IP?
Thanks again
Jules
Looks ok to me, I’m a geotechnical engineer, what company did you get the quote through?
If you got it through a large Engineering company i would recommend getting a second opinion from a smaller company, I work for a large company and know that these 'little' jobs get marked up due to the hassle of it being small.
Cant help you with the structural side of things, but it looks like 1 hour for a junior staff member which is ok.
J
Thanks for the reply K,
The loans will be serviced by both myself and my partner with combined income of around $120k. Would it be better to have the first IP under one name (mine) and the second under my partner’s name?
Does the bank consider income from an IP to be contributed as a method of serviceability? or is it just based on your wages?
I will be getting some paid help with regards to setting up the loan structure and if this is done right the first time I hope to be able to grow my portfolio without loan hassles. As far as the banks are concerned, is it better to get your broker/yourself to say right from the word go, this is my plan, I want to do this, this and that to get to here, now how can I do it based on this and that, or will they run for the hills?
I am very new to this game and appreciate any feedback,
Jules
The Entrance North, NSW Central Coast
Hi karlm63,
I am also looking for an accountant on the Central Coast, have done a bit of research and was thinking of giving Freeman Kennedy CA a call to discuss what the offer/experience. I will let you know how it goes.
Cheers,
Julian
Thanks Richard,
We were thinking that we are a bit short at the moment, just trying to set a savings goal and work towards that. Plus that will give us time to research and read forums like this one. I can't see it being a bad thing.
Thanks for your help
Combined income of $110,000
Current savings at $15,000, both of us are first home buyers.
Thanks
