What are you on an interest rate of 9.75%?

G'Day Intrerested,

In terms of servicing – you will not have any issue borrowing the required funds. The only question is around your deposit. You do not have any equity in your unit at 80% LVR but you can borrow up to 90% which means that you will have approximately $33k in deposit to use as a contribution for the new purchase.

There is no problem in paying Principle and Interest repayments as opposed to Interest Only repayments. The benefits of Interest Only is that the funds are liquid which means that you can easily use them for any future needs such as renovations or even another property purchase. The disadvantage is that the funds can also be used for any purchases as they can be accessed quite quickly and easily. The real question is your investment strategy strategy for the next say 5 years. This will dedicate what loan structure is best suited to your strategy.

Regards

Shahin

Adelaide Bank Fixed rate has a fully available offset option but the rates are slightly higher than the majors.

Bathroom and Kitchen are arguably the most important parts of a house so reno away. I was referring to the fence and bi-folds. Bi-folds are super expense. My wife wanted then so what I need was get $110 solid french doors (they needed handles and a paint) and it was a cost effective replacement that looked just as good. The deck is in the same boat. Every single buyer wants a functional and attractive bathroom and kitchen however not every single buyer will require a deck. Its a nice to have in my book. Decks are expensive even if you do it. 

G'Day Kate,

You have 3 options:

1. Advise your broker so speak to NAB as they do up to 95% (including LMI)

2. You speak to NAB directly

3. Speak to a broker who has experience dealing with Hybrid Trust applications and have him handle the application submission for you.

Regards

Shahin

I have a property in Botany in my personal portfolio. It has performed very well and I have had no issues finding tenants (I have been lucky to have consecutive long term tenants). You should also look at Hillsdale. My recommendation is to look at places that can do with a reno. Focus more on the land size as there are some smaller blocks in the area.

Very rarely is it a good idea to purchase off the plan. NRAS is another story all together. Be very careful NRAS doesn't suit all investors and you need to be careful of the stock. Some are great and some not so much. What's your investment strategy for the next 5-7 years?

G'Day Investhut,

You draw upon on the equity from your existing PPOR. You can either draw up to 80% LVR or 90% but you of course pay LMI. 

Lets take 80% – you have $348k in equity. Minus the existing mortgage of $140k, that leaves you with $208k to use as a deposit for the next IP purchase. Make sure the facility is a standalone facility so that the interest of PPOR is not contamanted with the interest of the IP. 

Depending on your future investment strategy (even beyond the next IP) it may be best to go onto an interest only loan with a linked transactional (or non transaction) offset. 

What's your budget and when you are looking to purchase?

Regards

Shahin

G'Day Brmiau,

I would strongly recommend that you stay well clear of Serviced Apartments and Studios. I recently tried to help a client refinance his Serviced Apartment that he bought in 2007 for $700,000 and it has now been valued at $370,000. The cashflow is fantastic however the capital growth is extremely risky. 

That aside finance is very difficult. You will find yourself feeling like a leper when it comes to finance. 

There are some really good buys (houses) about 20km out of the Melbourne CBD. 

What is your budget?

Regards

Shahin

Im glad I asked the question about how you have calculated equity!

Don't assume that you can automatically borrow the $10k. Make sure you get the Formal Approval on the amount and at the same time get the pre approval for the new IP purchase. Its better to do both with the same lender so they can see that the cash out relates to the pre approval. Also make sure that the Pre Approval is a credit assessed approval rather than a system pre approval.

Bottom line – get your approvals in order before doing anything futher.

Regards

Shahin