C2, if the valuation comes in at less than the one that’s there already – which has happened, I have to leave it as is. My banker did not say – hey, you better pay us some money to top it up – thankfully.

Costs of refinancing can vary. If you are staying with the same lender and aren’t changing a fixed rate loan, it can range from $0 to $600ish (brokers would be able to answer better than me on this exact point). It’s up to you if you want to pay this out of your pocket, but it’s always been deducted out of my loan at settlement. It just means you have that much less cash in hand i suppose.

If you do have a fixed rate, like I did in my example where one loan was $143.1K, and i got an extra $32K. Same bank, same terms, just a ‘2nd’ mortgage against that same property. So ‘new’ loan fees rather than refinance (plus MORE paperwork which i’m beginning to hate).

My bank manager of 5 years took off to the gold coast this year which was a bugger, but also good in a way that now I don’t feel bad if I go to a broker, who can offer me a better range of deals than just the one bank. If you’re having trouble with continuity of people, and differing opinions, I would find a broker you trust and use them for everything.

Josh

If I just spent the money rather than investing it I would be negatively geared. Rents certainly haven’t risen to keep up with values.

So if I’m buying another property, I calculate my return based on borrowing the entire purchase price, and so rent has to beat those costs for me to proceed. As Bill said, I’ll have it in a Line Of Credit, and so if I haven’t found anything to buy, it will be there and available, but won’t be costing me any interest.

I hope I’ve answered everybody’s questions.

Cheers
Mel

Simon

Should be in your inbox now.

Cheers
Mel

Poltergeist, I sent you a picture.

Paul, what’s your website? Does it have pictures? let us all know. As for selling yourself – you still have to convince Huey – and I think LuckyPhil too now![]

Cheers
Mel

sleeping

Cheers
Mel

Well Poltergeist, you’re in the bottom 75% and the top 8%. Maybe you need to spend some of the cash in your wallet to put food in the fridge![][]

Cheers
Mel

Hi Steve

Sorry, I thought you were suggesting that you were going to be doing it quite often, rather than as a once off.

Have you ever lived in the apartment that you currently own? If yes, and you haven’t rented it out – you should be able to sell it with no CGT. If no, but it’s never been rented, you would have to check with an accountant/solicitor/ato as to whether it would qualify as your PPOR.

If you are in the process of selling it and moving into your new place, as Simon said, you have six months to sell it without CGT. You can then claim your new place as PPOR from purchase date, and so sell it without CGT also. I think you need to talk to your accountant before making any decisions – from what I’ve read, you might be able to swing it, but there’s a couple of things I’m unsure about with your situation as stated above, so I will not advise you absolutely.

Cheers
Mel

Oh shucks!![][] I must admit that at about bedtime last night I considered not answering some questions, but then felt bad and went back and answered them anyway – sometimes just to give a brief, and then suggest a search of the forum for the rest.

Besides, I want to be like Poltergeist and Arty – they look like they can wreak havoc on the forums if they want!!

Cheers
Mel

I’ll give you an example of what I am looking to do at the moment:

I bought a property for $159K about 3 years ago. I borrowed 90% or $143.1K. I got it revalued a short time later at $195K (It was valued at $185K when I bought so it didn’t need to grow much to get to $195K). I then borrowed another $32K.

So at the moment, my loans are $143.1K and $32K.

The value is now $300K, so I am looking to refinance again to be at 80% borrowings. This would allow me to borrow up to $240K. So basically yes, I would get cash to the value of $240K – $32K – $143.1K = $64.9K.

So I now have almost $65K in cash to do whatever i want with.

Cheers
Mel

Hey first timer, there are many websites that have been mentioned re learning about trusts. I can’t remember any off hand, so might be best to do a search through the forums.

The other thing I would recommend, and how I learnt (initially, then with solicitor and accountant) is to read books. There is one by Dale Gatherum-Goss (www.gatherumgoss.com) called Trust Magic – I haven’t read this one though. There are others by N.E. Renton – Family Trusts, More about Trusts (I think), and Wills and Estate Planning. I would recommend all of these.

Cheers
Mel

Hi Fudge

congrats on the century!

I’m guessing that you are asking if people have used growth in value of properties to purchase further ones?

If so, then yes, that’s about the entire way I have purchased mine. The first place I bought (actually two – my grandad’s half of his house with grandma was the second) I was able to use my folks place as security. Every purchase since I have funded deposits by refinancing the previous properties back up to 80% of val, and using that money. Except for some trouble we got in last year where we had to put in $200K cash (expensive lesson I can tell you!), I’ve not put up any of my own money as deposits.

Cheers
Mel