Hi DWolfe,

This can be done, and happens all the time.

Let me know if you still need help with it.

Cheers,
YI.

Hi Roger,

You can use the existing property as security in addition to the new property when you apply for the loan on the new one. (This means you can potentially borrow 100% of thew new property if you so wish). 

Make sure you put some time into deciding on a good home loan lender as your best option is to continue using the same lender for any future property purchases (This is because that lender will have a mortgage over the Blue Mountains property).
 
It is possible to refinance to another lender down the track, but it can be quite costly and inconvenient depending who you are refinancing away from.

Regards,
YI.

I attended 6 auctions in S.E Melbourne suburbs this weekend.

3 Houses (3 & 4 BR's on good sized land)
1 New 3 BR Townhouse
2 Small, Older 2 BR Units in need of a lot of work

4 of the 6 properties sold within $30k of their advertised price (the first 4), and the average number of attendees was around 20-30.

The 2 small townhouses went WAYYY over their listed range and both had around 200 people in attendance.

The extremely high demand can only be explained by the first home owners trying deperately to get into the market before the FHOG is reduced and eventually wiped out. The demand I witnessed on the weekend has become a lot more severe over the last 2 months in particular.

Surely we will see a reduction in prices once the first home owners trail off. I would guess this will be around around 6-9 months after the grant is reduced as those who put in significant effort in researching and motivating themselves to buy will most likely still purchase something.

As for the 2nd home buyers, this market appears fairly strong, but at fair market value. I expect the FHOG end of the market to come back to the field by mid next year, so hopefully the rental yields in this area will improve a bit also!

YI

Another reason for perhaps being able to borrow more from banks 2 and 3 when bank number 1 says your at your limit is competition.

Rival banks will often push their boundaries a little further if you are willing to bring over your existing loans from another bank.

As Terry mentioned though, this can get expensive so do the sums on both and work out which is more beneficial.

Steve.
(YI)

“Knowledge is Power”

Hi all,

Just a bit of input on a few issues here. Im a business banker with one of the top 4 banks.

1. When requesting a valuation to be done for a security (property), we ALWAYS attach a copy of the title search, and 90% of the time a copy of the COS is provided too.

2. Our valuers tend to value conservatively, but they won’t just reduce the value arbitrarily to be safe. Reason being that we use an 80% shading for lending anyway most of the time. If the valuer is out by more than 20% then he probably shouldn’t be a valuer.

3. We will almost always do a bank valuation even when an independant one is done, therefore probably better off not to pay your own valuer unless you smell a rat.

4. These apply to Commercial, Residential, Industrial etc properties in the way.

Regards,
Steve (YI)

“Knowledge is Power”

Hi Eclipse,

I can recommend a very good and honest (especially with pricing) conveyancer who works out of Moorabbin.

Please e-mail me or send me a PM if you are interested.

Thanks,
Steve (YI)

“Knowledge is Power”

Hi Jeb,

I believe there is no LAW set in place to determine this.

Hence it will most likely come down to the decision Terry mentioned.

Are you willing to forego the extra amount for the current tenants?

Let us know what you decide and how it goes.

Thanks,
Steve (YI)

“Knowledge is Power”

d’oh!! [hmm]

Steve.
(YI)

“Knowledge is Power”

Hi guys,

I couldn’t find a relevant topic, so I’m just using this one to ask the following question.

How does/did one join the R.E.S.U.L.T.S group? And secondly, what is it!?

Forgive my ignorance, but i’ve only just come back to the site after a long absence.

Thanks in advance,

Steve (YI)

“Knowledge is Power”

Also, as always with rate rises, the immediate effects will be absorbed by short term debt (ie: credit cards, personal loans, home loan redraws) – at least initially.

No one can predict which rate rise will be the straw that breaks the camels back, but i’d suggest this recent rise won’t do it. Australians have been able to suffer HUGE increases in petrol over the last few years, and I think it will take at least another rate rise to push the market over the edge.

The reason we (Australia) are so vulnerable is that our marginal propensity to consume (MPC for those who have studied Economics) is something like 96%. This means that we spend 96% of our income and save only 4% [blink] This leads to our obsession with credit card debt, internet purchases and store cards – Quite sad really. [mellow]

By the way, I’ll give odds of 3-1 that we’ll have another rate rise by the end of the year… Any takers?[evil4]

My 2c,

Steve (YI)

“Knowledge is Power”