It differs between banks and even within banks. SOme do not do checks at all, others ring a portion of employers to check.

Generally it is done first up, but you never know. If I was her, I would not hand in my notice until I get full approval in writing.

Which bank is she with?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Hi Pinny

I am not sure selling is the right thing to do. If you are only going to buy more property to replace the one you have sold, then you must factor in all selling costs such as agents fees, legals, NSW exit tax, CGT etc and then when you buy again you have loan costs, stamp duty, stamp duty on mortgage, legals etc.
It seems you think your property is going to keep dropping in value. It may or may not, in the short term, but if it is in a good area, long term it should be back to good growth. But no one knows how long this will be.

You also seem to be concerned about the yield. This these are low in major cities, but in the long run having a a high growth propety will make you much more money than a cashflow +ve property that does not grow in value.

If you want to buy more property, you could always keep the existing one and then borrow against it to buy more. Maybe cashflow property to balance out the low yield.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Some questions to ponder:
Does your current home have a mortgage?
If you sell, what ywill you do with the money?
Do you think it will drop in value further?
Is $285,000 gain in 6 years really that scary? That’s more than doubled. Imagine if you had pruchased a cashflow positive property with no capital growth instead.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Usually just a switch fee of a few hundered $$.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Challenge it! The values used were way too high.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Sounds similar to a caveat. Have you asked the land titles office? Does it have a number next to it? if so you should be able to get a copy (of whateve it is) like you would with a caveat and this should outline the restricitons.

A solicitor would be the next best person to call.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

From a tax perspective, you should have IO on investment loans while paying all extra off your non-deductible debt first.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Dazzling. yes, normally they would, but these are adult children!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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You should look at trusts. Probably discretionary or hybrid discretionary trusts. If you wish to use a super fund, the fund will have to pay cash for the properties. ie they cannot be mortgaged under a superfund.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Based on the common garden variety No Doc, you could get 65% of value of your two properties less your current loans = $193,000 approx.

If you are using the funds for another property, you could also get 65% of the value of this property.

Good luck

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]