Hi all,

Thanks for all your valuable inputs.

I got RP Data and Residex report and report from local RE agent.

After reviewing both reports and if I use Residex comparables sales method then the valuation is about 20% higher then the one did by the valuer.

However, I am not sure how to pitch this to the valuer or go to another lender.

The ultimate aim is to borrow against this asset for purchasing the next one with 80% LVR.

Currently I am in the LMI zone. So trying to get down to 80% LVR.

I prefer not to use the cash for the next purchase.

Any further tips/successful experience of similar situation would be appreciated.

Thank you in advance.

Best Regards,

WC

Yes, I did change the lender. But the valuation company put the same valuer in both valuations.

The valuation systems assigns it randomly and I was advised that I don't have any say or control over choice of valuer.
I paid for the valuation report.
Very strange to me.

I have challenged the valuation with some new data about comparables sales, actual buildling year. The valuer just assumed the building year.
I am now therefore hoping that the valuation challenge becomes successful.

If its not successful, then I am also thinking to have another valuer no 3.
But can I have control over the choice of valuer , if I pay for the valuation report ?

Any thoughts?

Thanks.

Regards,
WC

Thanks.

So far I have understood the following steps from Richard’s response –

1. Set up line of credit(LOC) with existing lender
2. After LOC is approved, use LOC for loan application with new lender
3. Demonstrate part of LOC as deposit towards next Investment with the new lender

However, in my case, the order of events is bit different.
I have already applied for the loan with new lender and demonstrated funds in off-set of my existing lender as evidence for deposit.
Therefore, in this case, I am doing the following steps –
1. Put IP deposit amount from the offset into home loan which is Principle Place of Residence(PPOR).
2. Then re-draw/recall the deposit amount and spilt the home loan into 2 parts 1. Line of credit and 2. remaining home loan.
3. Use the line of credit for IP deposit at the time of settlement, thus create a tax deductible investment debt for 2 nd IP.
Order is bit different. Is this sensible method to achieve the desired results ?
I hope so. ??? Or rather I would like to think so.
Any corrective inputs appreciated.

Thanks.

Cheers,
WC

Hi all,

Thank you very much for your inputs.

Apologies for a late reply.

I was busy planning for our 2 nd Investment Property(IP).

Update.
I am in the process of purchasing one.

I will not cross securitise. I do not intend to sell but I guess main reason is to have better access to equity.

And the method I am advised is to –
1. Put IP deposit amount from the offset into home loan which is Principle Place of Residence(PPOR).
2. Then re-draw the amount and spilt the home loan into 2 parts 1. Line of credit and 2. remaining home loan.
3. Use the line of credit for IP deposit, thus create a tax deductible investment debt for 2 nd IP.
I am not sure how this method works.

Any experience with such methods ?

Any inputs appreciated.

Thank you in advance.

Regards,
WC

Hi all,

Thanks for your valuable comments.

I have started considering Brisbane market.

The market is pretty flat now. But I am hopeful that there is a scope for profits, if you buy well-located and right kind of property, considering the next 10 years time-line.

Regards,
WC

Hi all,

Thanks for your valuable insights.

I am reading Michael Yarndey's book. It is interesting and useful.

I guess in 2010, affordability is key for buying an asset in any of 3 major markets in Australia.

I am also interested to find out about any historical studies done that shows trends in supply/demand Vs affordability in Brisbane,Sydney and Melbourne market for the past 100 years and projections of supply/demand for next 10-20 years.

Were there similar or worse conditions in the past as compared with 2010 (except the great depression, world wars etc)?

Any references to useful web-sites or articles is welcome.

My next question is whether to go for a house,townhouse or unit in 2010 ?
Are there any good holding costs calculators available on-line?

Thank you very much again.

Sincerely,
WC