Ferdinand – im not registered to advice on REST product…and to be honest i dont know much about what REST offer.

However being “student” financial planer in training i do know you can get a lot of these “life” insurance via your super- so give REST a call and see what the offer is…yes you can simple increase the limit as you wish; it’s normally written in your quarterly super statement

Regards
Michael

HI,

Firstly- which bank are you with?? a few banks have recently changed their rules meaning instead of 80% LVR as acceptable “risk” they may want the LVR to be as low as 60% before they would allow your parents to be release.

If it comes down to push and pull…you can alwasy refinance as well to a lender that allows a higher LVR- hence releasing your parents from the security + possibly drawing some equity to fund for some of the renovations.

Generally speaking on a 32 sq meters with no car space and balcony space included – your max LVR would be 70%; if your an existing client of CBA or ANZ they may push it to 80% ( but unlikely – as releasing your parents security has no advantage for the banks)

About the price…i currently have a 1 bedroom + study investment property also in chippendale…and it’s a on the good street as well ( start of Regent street- next to central/ office of marriage and birth etc) …prices in the city influx quite a bit- do your own research dont trust the agent to much…..i bought mine in 2008 for $420,000 end of last year the agent said it would go for $580,000 min— placed it on the market for 3 month …and the highest offer was $495,0000
banks value come back as $485,000….

Chippendale has dropped a bit leading up to this year; due to over development and over supply of units currently…but it will pick up as demand in the city are quite high— so i say hold off on the sale for a bit till the market improves… especially when rates are expected to drop…(according to westpac)

Lastly about the Loft- i say dont waste your money or time on it;
1. you need DA approval + strata…will cost you quite a bit + construction – the amount of $$ spent on something that doesn’t add a lot of value .
2. It will make the place look even SMALLER with the extra clutter and walls etc…

P.s I didn;’t end up selling my unit, due to the value….and it brings in rent of $680 per week…so no rush to sell.

Regards
Michael

It is.
There are many ways to achieve a similar outcome- it all depends on your overall LONG term goal and objectives ie planning a construction? wanting to buy it in a trust etc…the above example is one of the 3 common ways to make Loan 2 tax deductible.

Buddy you chosen the right lender then.
NAB will not have a problem with your job change over.- but my suggestion is to leave it as it is….if they do a 2nd check then you take the next step to resolve.

If the branch staff/loan manager is telling you another-wise…shoot me an email and ill have a chat with them.

Regards
Michael

or your another option is to delay the start date…im sure if they really want you they would understand.

But really as part of responsible lending; you should let the lender know…but it may be a catch 22- you die if you dont…you die if you do.

Regards
Michael

From a true voice of a good lawyer ahha

Regards
Michael

Get job first then buy..that why u can lavage more from the bank; rather then using all ur cash.

In regards to the rual VS inner—it’s a personal choice and depends on your overall financial “plan”…i have personal have only invested in Inner city and have 6 good foundation property all with good capital growth ( all within 1-30km of CBD)…VS my older sister who has 17 properties but mostly located in the rural regions ( 30-100km CBD) —- one has good rental one has good capital growth.

Never hurts to have a mix of both; but i say for ur first property get a good “foundation ” property that you can keep on leverage against ( ie a capital growth property- established area)

Generally speaking House alwasy brings more CG then units- CG comes from Demand ( land) , location and gentrification.

P.s you can stil get a loan based on your “rental” income – just not a LARGE loan…

Regards
Michael

Fair enough- didnt sound all that positive compared to your another post…it was so negative + you sounded worried lol

Glad it’s working out either way!

Regards
Michael

Umm your solicitor isn’t really good…

1. solicitor Should have advised all reports to be done to cover his “legal ass” before 10%- it takes 1-3 days for the report…as need to have access
2. Title search should be in the sale contract; but one can be organised online for $19 instantly
3. Get finance ready…As a matter of fact…i normally DO NOT let my clients place a 10% down unless the finance is 1-2 days away form “unconditional approved “; because a lot of banks can not get the approval done within the given 5 days.

– Flood- If your area is flood prone ; your going to have a bit of trouble with the valuation + bank… look at the sale contract – it tells you the flood ratio ( or go to the council websites..it also tells you the flood ratio for each street- it’s part of their flood control management department) — if the ratio is LESS then 1: 100- you be limited to only a handful of lenders that would finance this place
If it’s 1: 50- then you better make sure the LVR is less then 65% and you better consider getting your 10% deposit back…hopefully it’snot less then 1: 25…

So my advice- read the sale contract- something your solicitor should have done for you before 10% ( or email me the contract and i can check the flood level for you if you want) + jump onto the councils website and check the flood ratio for that street.

Regards
Michael

Fair enough- let us know how u go with the lender…it would be great to hear some feedback from Cust

Regards
Michael