Forum Replies Created
- FMS wrote:Mgs4 wrote:Hi All,
Related questions, are banks normally waiving annual/initial fees for new loans at the moment? We recently got new loan which had an applicable annual fee but also a cash payment for new loans, some promotion offer.
Also if you rate lock for 3 years, the property goes up in value and you want to tap the equity to say buy another IP, can you easily add another loan on the property instead of initiating break fees on the 3 year fixed loan? What is the easiest way to borrow additional debt against the property in this circumstances?
NAB/Homeside have also increased thier fixed rates recently.
Most banks are waiving application fees but still charging the annual fee as the trade off is you get a discounted variable rate.
CBA are offering $700 for a refinance from another bank and St George are offering $1250.
If your loan is fixed and you get it revalued and the property has increased you will be able to access the equity &increase the loan with a separate sub account/loan split to the existing fixed loan therefore avoiding break fees.
Hi FMS, thanks for the reply, not sure I get it entiry.
Lets say you've got house $100k, 80% LVR, 50/50 variable/fixed. Value then goes to $200k, could you just increase the variable up to hold LVR 80% at new value? Or how would a sub account/loan split work in this instance?
wilko1 wrote:A lot of older housing used to have 2nd living areas. That was there actual design back 10-20,30 years ago. Not some much in fashion now days. So there is a better use for these spaces.trying to fit a room in the original floor plan. Because more often then not you don't have to get council approval. Council approvals and development approval, if your buying the property to resell takes extra time, extra money and if your spending 1200-1500 sqm building a new room at say (10 sqm-12 sqm) that's a cost of 12k to 18k (for building alone) plus xouncil fees, drawing fees, interest.
It just doesn't have that good a return as say If you giprock off a 2nd lounge area for 1500 dollars.
Thanks. Do you find the extra room value add mainly works well for cities, does it also give much of a kick to rental yields/price for regional or rural areas?
Do a lot of investors look for mortgage brokers that are also sophisticated property investors? I find a lot of mortgage brokers, particularly new entrants to the industry, wouldn't meet this criteria.
Hi All,
Related questions, are banks normally waiving annual/initial fees for new loans at the moment? We recently got new loan which had an applicable annual fee but also a cash payment for new loans, some promotion offer.
Also if you rate lock for 3 years, the property goes up in value and you want to tap the equity to say buy another IP, can you easily add another loan on the property instead of initiating break fees on the 3 year fixed loan? What is the easiest way to borrow additional debt against the property in this circumstances?
Terryw wrote:Mgs4 wrote:Normally do mortgage brokers have websites or PDF docs with loan comparisons on key metrics eg interest rates, annual fees, maximum LVR etc. As loans are relatively commoditized products the main variables are total costs (ir, fees etc.) and ease of application (LVR and other relevant constraints). The tricky thing I find is brokers can access different rates to what the average person can, so using online comparison websites often isn't on accurate comparison if your going to go through a broker.Yes, most brokers would have such soft ware which compares all costs of various loans.
But is this normally provided to the client or do brokers normally like to keep this internally as their "value add"?
wilko1 wrote:New bedroom – but only if it can come out of the original floor plan of the house. Ie making a 2 bed home into a 3 bed home provided their is the room. Or increasing a 1 bed unit into a 2. Adds value to property Because of the additional income stream that can come in.But My top 5 things i would do first to a undesirable property or just to increase its value is. In no order of expense or preference.
Paint
Render
New kitchen
New bathroom tiling
Additional carparking or bedroom (If in areas like Sydney or inner Melbourne)
Then 5 lessor things i would consider
Flooring
Lighting
Landscapping
Outdoor area
Front fence / curb appeal
Thanks for the post. On adding an extra floor on the original floor plan (ie not increasing the size of the interior area) do you find this works much better for city housing than regional/rural locations? On not adjusting the original floor plan, do you recommend that because its just easier to do?
Do you find this is often difficult to do because if you could easily add an extra room on the original floor plan the original developer would have done so?
Normally do mortgage brokers have websites or PDF docs with loan comparisons on key metrics eg interest rates, annual fees, maximum LVR etc. As loans are relatively commoditized products the main variables are total costs (ir, fees etc.) and ease of application (LVR and other relevant constraints). The tricky thing I find is brokers can access different rates to what the average person can, so using online comparison websites often isn't on accurate comparison if your going to go through a broker.
Does anyone have some recommendations on research and questions you should do to see if you have a good mortgage broker. The reason I ask some of this is there is obviously a scope for a conflict in interest in the mortgage broker recommending certain banks because he gets better commission, where we may not know of superior rates/process with another lender that may not give the mortgage broker as good a comm.
Thanks for the reference to On The House, it certainly is a great resource but I find it is missing data with certain properties.
