Hi Terry

Thanks for the reply.

Refinanced PPOR 420k into two loans + a separate equity release.

So accounts should look like this

1, -$220,000 V
2, -$200,000 F
3, -$53,600 IO
4. $00,00 (offset acc 1)
5, $53,600 (offset acc 3)

Instead they look like this

1,-$166,400 V
2,-$200,000 F
3,-$53,600 IO
4, $00,00 (offset acc 1)
5, $00.00 (offset acc 3)

I hope that explains things clearly.

Thanks

S

Hi Guys

Yes Benny worth the second opinion in this case for sure.

Have moved forward with the sale, unconditional next Tuesday with settlement & renovations starting straight after Easter.

Cheers

S

Hi Ethan

Totally agree, it is very poor service and extremely lazy. It was not a hard decision to make.

The loan is being set up as three separate loans. 1 fixed 2 Variable & 3 the equity deposit. As I understand it I just need to ensure it does not offset interest on the the PPOR.

Thanks

S

Thanks For the reply Benny.

Terry +.20 -.10 on fixed & +.10 on variable (I was going 50/50). Matched rate on IO equity release. They are good rates, well below advertised.

Their Valuation has come back 5k higher than ING. What really gets me is no valuation was done when I was told my property was valued at 2014 purchase price, like they were not interested in the business at all. I even told them at the time I would be looking to other lenders & was told OK! Should I expect this from all banks.

ING is internet only, that’s the only downside, but that balances out as I don’t yet view them as being run by a bunch of monkeys.

An unrelated question…….

Is the equity release from my PPOR used for a deposit for the IP deductible?

Thanks Guys

S

Hi Ajay

Thanks for the reply.

I had a termite inspector come look at the property the next day. He took one look at the spot the building inspector claimed termite activity & said “Na that’s water damage”

He gave the property a good going over and got up into the roof, something the first (much younger) inspector did not do.

He said it was the first property he has seen in 25years that has steal framing under a wood framed roof. He was also able to show me what some real “old termite activity” looked like. there was some tracking on an old post down the back of the property.

Glad I got the second inspection, tricky situation when you are new at this having advice & opinions coming from every angle when an inspector shouts “termites”. I was promptly refunded the fee of the first inspection after giving them some “Feedback”. I now have a pest inspector I have some faith in. Good learning experience that.

Cheers All

S

Hi Benny

Thanks for that, I do have a broker who unlocked 50k in equity from my PPOR through a refinance as my bank (NAB) was telling me the house was still valued at purchase price two years earlier. I am quite aware of the market in my area & I knew they were just being lazy / extra conservative. I had bought well & the aria had 7% increases both prior years, though this did not reflect on RP Data which I am quite sure is where they did there”research”.

My broker had three appraisers come to the property, two valuations came back at 60k above my bank & one at 80K. These variances are also reflected across various online tools. This is what I am getting at.

Valuations for my PPOR came back from various lenders at the following numbers 1x 510K (NAB), 2x 550k (desktop valuations) 2x 570k & 1x 590k. The last three visited the property. Property was “as purchased”

When I initially spoke to the broker I stated “I am not looking for a better rate, I am looking for a good valuation” Of course we looked at rates but I was clear that was not my primary focus. They delivered :)

I am seeing the same wide range of prices on the online tools looking at a potential IP that I had with my PPOR, including a low valuation on RP data even with the area performing very well the last two years, the last three months 6% increases alone.

The rules, as I have seen them played out over the last 8 weeks is get the broker to send in the valuers. Some refinancing fees were well worth the reward I feel. The reduced rates alone was worth the refinance, the equity was the cheery on top.

Cheers

S

• This reply was modified 7 years, 9 months ago by  Simon.

Hi all & thanks to Benny & Richard for the feedback.

It all makes sense in my head, it is great to have a platform to share those thoughts & hear the “opinions” ;) & experiences of others.

I am of course somewhat nervous going into my first buy. Looks like we should agree on a number over the next couple of days well below valuation that should see this one set me up for the next quite quickly.

Cheers guys.

Thanks for the responses guys :)

I have read that repairs are not tax delectable until a tenant is in? Is this correct? I have a PPOR so the property is obviously an investment.

Thanks guys.

Simon

Edit”, Just found the info, crap.

• This reply was modified 7 years, 9 months ago by  Simon.

Thanks Ethan

I registered with the networking group & will keep an eye out.

I think I have narrowed down my search to a couple of the less desirable (or at least that’s the perception) suburbs in Logan. I will look to buy well with option to add value. I have found several property’s on good size blocks that are cash flow positive.

I am thinking “how is this going to get me into the next property” every time I look at one.

I will let you know how I go. The refinance is a longer process that I thought so I have had to cool the jets somewhat. This is a good thing, the longer I look & more information I take in the better I realize there is a lot of options out there.

Cheers

S

Hi Ethan

Thanks For the Welcome.

“Then what? You wait until it goes up in value enough to be refinanced so you could buy another? That could take a very long time…”

I have actually been thinking about that very issue while looking at property’s over the last week, “Then what” is a very good question!

I have been spending a few hours each night digesting sales figures of different areas from the Gold coast, Logan & Brisbane while reading books, seeking info on the net & conversing with assorted “Advisers” & “Agents”.

Its remarkable how what “I think” a good investment is or would be has changed over the last two weeks.

This is my plan as of today.

I am looking for a + cash-flow property under market value that has opportunity to tidy it up with out requiring major work. I Work in Hotels but in my youth worked for builders, landscapers, painters & can throw up a fence. While not being a master of these trades I am handy enough.

I found one a few days ago that looked good on 700m2 in Loganlea that went to contract the same day I enquired.

I have just found another that has just come on the market, below market on 600m2, in my estate, It needs some love but it is just cosmetic from what I have seen externally (its probably 5-6 years old). Purchased for the right price it is instant equity in a area of owner occupiers & higher than average rental returns for the aria. That is, I guess, what I will patiently seek out.

My refinance is going to take some time to complete. So I am not Market ready just yet. There is no reason at all for there to be any issues with it. Is it too big a risk to submit a contract with small deposit & “Subject to finance” clause before the refinance is complete? I have an appointment with my broker on Monday where we will be looking at a loan through a different lender to finance the first Buy. I understand not to cross collateralise the property’s.

I also have some “value adding” work to do on my home. So I would be hoping to be ready to go again in 6-12 months.

I would love to hear some more feedback & advice.

Cheers

S

• This reply was modified 7 years, 9 months ago by  Simon.