For PPOR or for investment? Very small area full of units close to Parramatta CBD. Low vacancy but a high'ish crime rate.

Regards

Shahin

I generally wouldn't be doing what you are planning via a LOC and also his comment about not match rates is rubbish as once you start talking to the banks discharges team its a different story.

Regards

Shahin

Sit down with your broker or banker and nut out what your finance structure will need to look like. 

You will need to determine whether you use the entire deposit, some of it or the minimum amount so you don't hit the 'deposit' wall. By the sounds of it you should not have any issues with servicing. 

If you are going to go hard and do a 95% LVR lend then its generally better to do it sooner than later in the purchase cycle.

Newcastle is a good place to buy right now but not a lot of stock. I would consider purchasing a property which can be renovated or developed into a 2 dwelling block (could be on same title or separate depending on the strategy). 

Regards

Shahin

There are 4 lenders – I would start with CBA and NAB/Homeside. The problem with CBA is that although they offer upfront valuations – they don't provide upfront valuations for properties that have 3 or more units on one title whereas Homeside does.

So first get your broker to do the standard analysis – i.e. postcode, servicing (although if you service with Bankwest you will service with Homeside), etc and then order the upfront val. 

Make sure that there is plenty of commentary and supporting documentation as possible sent to the valuer.

At 90% you don't want multiple hits on your credit file so do the upfront val and then go from there. 

Regards

Shahin

Yep thats what gave it away for me. I  thought he may be he/she is from the states but living here.

Regards

Shahin

This is tricky and its not best to gear that high with all properties. How high you should go on an LVR depends greatly between investor, situation and IP strategy. 

Also getting an approval at 95% is harder than many think.

Regards

Shahin

No bank will value the property on 3 seperate titles if the DA is staged as construction and then subdivision which this is the case.

You will have to find another bank (and there is a few out there and they all offer vals) – order the upfront val and contest the hell out of it.

Has your broker contested the val with Bankwest?

Regards

Shahin

They have niches but you I would only use them as a last possible resort.

Regards

Shahin

Yes completely agree on the $50k part. 

Regards

Shahin

Yep there you go – the valuer can only value the property as is. Why? Because if the proverbial hits the fan right after construction and before subdivision or you don't have the funds to do the subdivision of whatever reason then the bank needs to protect itself.

I would suggest getting an upfront valuation with another lender – I have done this (even personally) many times and you will find that the valuation will differ greatly because its quite a unique valuation. Are you running against the clock?

Regards

Shahin