Hey guys,
Im not sure how the hole revaluing thing works.
Example: you buy a house for 150k and renovate. After the renovation its worth 200k. How can you access the equity to buy more properties? Do you have to request from the bank to revalue the renovated property? Also, what happens to the home loan of the renovated property? Lets say the loan is at 130k.
Thanks for your time.
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Hi Engelo
Yep – you have it revalued by the lender, explaining to them that you’ve carried out renovations.
Some lenders will allow you to “top-up” your loan to 90% of the properties value.
If the property is worth $200k – you could possibly top-up the loan to $180k, which gives you around $50k to play with.
I would encourage you to set up the $50k as a second split so it’s easily identifiable in the event that it’s used towards further investment (ie. tax deductible).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hey Jamie,
Thankyou for your response.
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
No worries, all the best with it. Let us know how you go.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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