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TheFinanceShop
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March 21, 2013 - 8:27 am
How did you go with your valuation?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 21, 2013 - 8:25 am
Ok so your equity at a 95% lend (which is hard to achieve but let's park that for the time being) is approx $19k.
What is the purchase amount of the new IP?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 21, 2013 - 8:07 am
It is very unlikely that the valuation on this property will be higher than $290k unless you have done some extensive renovations on it and even then there is no guarantee of a higher valuation.
Therefore lets assume that the valuation is $290k. If this is the case then your current LVR is 86.20%. This means that you can draw upon the equity at either a 90% or 95% LVR. If we assume that you can do it at a 95% LVR then the equity available would be $25k minus the LMI payable. The LMI payable at a 95% lend will be around $6k so the equity would be $25k – $6k = $19k.
Who is you current lender?
Regards
Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 21, 2013 - 7:59 am
You mentioned your house is worth $170k and the loan owing is $175k. Is this correct?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 8:24 pm
How are you calculating equity? What is your current loan amount and the purchase price of the PPOR and when did you purchase it?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 8:22 pm
Westpac increased this week and the other majors will follow within the next few weeks.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 11:45 am
Gosh its only $29 – I spent more on lunch today.
Have you seend this http://babylonfrog.com.au/app/App.htm
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 11:42 am
You have to treat this transaction like a business and do the numbers.
Ok so lets look at the second option first. If you sell your current property, factor in all the costs associated with selling your current property and buying another property and then look at the net operating cost.
Now weigh this up against your current (which is your first option) property which you can rent out for $600 p/w and has a mortgage of $250k. When doing this dont forget to factor in ALL the operating costs.
From there, the numbers will tell you which is the better option.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 11:33 am
You will need to advise both your solicitor and your lender ASAP of the change. Change of ownership means the loan application will get re-worked.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 8:35 am
What program are you referring to?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 20, 2013 - 8:22 am
Yes you can do that and you can even get secured car loans at around the 6.50% mark. However I am a little confused – you are struggling to meet repayments so why are you considering a car loan?
Also based on the numbers with property 1 – it looks like you are cross securitised however you mention that property 2 is owned by your partner?
Can you clarify this?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 19, 2013 - 11:02 am
Great guy and I have had several client use him as a BA and have been happy. I think he has a trial of deal finder where you can see old properties.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 19, 2013 - 10:59 am
Be very careful when considering personal loans – they (and other unsecured debts) have horrific consequences on credit scoring so if things are tight you need to tread carefuly.
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Shahin
TheFinanceShop | Elite Property Finance
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March 19, 2013 - 9:50 am
Yes it is – which state is this?
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 19, 2013 - 9:43 am
Good work sounds like you are on the right track. A lot of investors overlook the simpler strategies.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 19, 2013 - 9:42 am
Just because the properties are positively geared does not mean that it will help with servicing. There are numerous ways to improve your servicing. Most of the investors I manage hit the equity wall faster than the servicing wall so you need to factor that in.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 19, 2013 - 6:28 am
How long have you been self employed?
There is a big difference if you are planning to construct 2 vs 3 vs 4 dwellings on a single title. This will be a crucial thing to consider when choosing the lender. Most lenders will do 2, some will do 3 and very few do 4.
Regards
Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 14, 2013 - 2:20 am
DB's on OTP's are expensive and you can only do one.
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Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 14, 2013 - 2:17 am
Where abouts in Sydney?
Regards
Shahin
TheFinanceShop | Elite Property Finance
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TheFinanceShop
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March 14, 2013 - 2:16 am
Seriously they are terrible investments – do the cash flow numbers and understand each and every outgoing cost. I know $175k doesn't give you huge options but there several properties that I can see in that price range that will give you both good scope for CG and cashflow.
Regards
Shahin
TheFinanceShop | Elite Property Finance
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