Hi everyone,
I am hoping some of you may read this and provide some insight into our situation.
We own 1 xIP. Full reno and now have good equity to use for further accqusition of IP’s. Issue: my husband is about to have a career change and he will be going from full time work to CASUAL full time work. We are wondering how this will affect our investment strategy in terms of:
Q: our borrowing capacity
Q: should we get IP refinanced and valuation done now before husband goes to Casual status? Does it matter?
Q: Should we pay for valuation of renovated IP before tenants move in or before? Can you value it without refinancing or is it always done as part of a refinnce? Ie: can I just get valuation for valuations sake???[inlove][withstupid]
Snowflake
It will affect your borrowing – although you still have options.
If you were my client I would be discussing getting as large a LOC against all property investments as you can. Leave it undrawn and it will cost no interest.
But it will be there to use when you need it without an application showing the casual employment.
Any additional finance needed from then may well be LODOC or NODOC loans unless the casual is permanent enough and the LVR low enough ……
Please discuss this with your broker or accountant – DO NOT discuss it with your banker [blush2]
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon,
I have been a bit disheartened at the forum lately as I see so so so many posts that say 90+ people read but no-one replies to. I personally have a habit of trying to help as much and as many people as I can in return for some advice to my own questions and queries…[inlove]
Snowflake
Hello Snowflake
Don’t be discouraged from reading or posting on the forum.
I think that most people work on the principle that no advice is better than bad advice so if they don’t have experience in an area they don’t post an answer.
To answer your second two questions you can get a valuation without refinancing. I would ring up your lender and ask what they will charge you for this and if they are willing to do it. If you have just completed a reno they may be willing to do it even if your last valuation was just a few months ago. If you are paying for some sort of pro package it may include a certain number of free valuations per year.
Personally I would do it before the property was tenanted but that’s mostly so as to avoid the hasstles of access. I can’t think of a reason why it would be better to do it with tenants in place.
Hope this helps[smiling]
Elka
Hi Snowlake,
I’m with Mortgage Hunter. If you have any choice in the matter it makes much more ‘sense’ to get this done before the official change in circumstances (based on the information you have supplied.) As a sidpoint, lenders like to see job continuity from the point of the actual trade or position. Ie. If you have three jobs in two years, but all the same trade, is generally seen better that when a person has done same job for several years, and then totally changed career type. (ie.Mechanic decides to become a hairdresser or something like that). All the best with the future plans….[strum]
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