Hi everyone
we are looking at buying an investment holiday unit on the sunshine coast, I have so many questions I'm just going to list them all and would appreciate anyones help.1. We are going to the bank tomorrow! our home is worth approx: $650000 the unit we are looking at is on the market for $590000 and we owe about $169000 on our home. And we have another loan of $60000 IO from equity on our home.
My question…Is there anyway we could borrow from the equity in our home but not have the investment attached to our homes just in case the investment goes belly up???2. Also we are with one of the four big banks and would like to get the best possible deal for us. So how do I know what rate to ask for. We have been with them for a long time and have credit card, 2 loans and 2 accounts with them.
3. We have to make an offer on the unit there is 2 units for sale that we are interested in, one on the 8th floor and another on the 9th floor pretty much identical, is there anywhere that we can get a report about how much the units are worth??? so we know how much to offer and not offer a ridiculous price, that they will reject etc.
4. Also how do I get the body corperate minutes from the last 5 years to see what is going on in the buildind etc.
Thankyou In advance you advice will be much appreciated newbiebeginner
No 3. – If you don't know the true value then it's hard to make an 'informed' offer. Get a valuer in asap.
No 4 – Contact the management company and ask for the documents you need or try asking people living there for the minutes if the body corporate aren't forthcoming.
No 2. See comparative rates to identify who is lending at what rate and ask them to match it. http://www.canstar.com.au
No 1 – Get the loan from another lender, based on your loan capability as it is now, not as an equity based loan on your PPoR. Use the deposit required from the equity.Ian
http://www.theblockblog.com
Free Property Investment Info, Tools & Resources For Investors With A Sense of Humour.If you don't know what it's worth I would suggest doing more research until you know. Don't just go by what someone tells you. Look on Realestate.com. Search for what's out there. Look at some, compare. Do you know the different areas, streets etc. Prices can vary for a similar place just because it's in a better street.
I know I wouldn't risk spending that sort of money without making sure it wasn't going to go belly up.You should be able to use the $60,000 as deposit for the purchase but without borrowing 95% you may have to cross collateralize. Can you get more equity from your home? then use that for legals etc and get a stand alone loan for the new purchase. The bank will still come after your money if it goes belly up.
You can order a strata search. Your solicitor can order it.
newbiebeginner wrote:buying an investment holiday unit on the sunshine coast,Generally speaking holiday units do not make good investments.
Make sure you speak to a good broker and talk through the financiing of this particular property. You will probably find the lending institution will see increased risk in this type of investment and will lend you funds at a lower loan to value ration than for a standard residential loan.
Are you holidaying there at the moment?
Reason I ask is holidays makers tend to associated there last holiday with a good time and romanticise about having their own unit at that location. If this is the case then you are not approaching this important decision from the right angle.
Reading your post it would appear as if everything is happening too quickly – slow down and do more research. If the property and the area still stack up after your research has been completed then make an offer based on your research.
I would not be worried about missing out on this unit – there will be others.
Hi there
1. You can structure the finances in a way that avoids using your entire home as security for your investment property. It's unlikely the bank will structure it in this way for you – it's in their interest to simply cross collaterise the two properties.
2. You don't ask them for a rate – they tell you what's on offer from their ONE bank. They can only advise on the products that they offer – they won't tell you that the bank down the road is offering a better deal. An independent broker who uses multiple lenders can advise on a number of products accross a number of lenders.
3. You can arrange for an independent valuation.
4. The selling agent generally provides permission for you to go through the body corp minutes. There's usually a small fee.
Hope that helps.
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]
Hi NW
Firstly welcome to the forum and I hope you enjoy your time with us.
I can remember buying my first IP some 16 years ago and i still own it today so has been a great investment.
Sunshine Coast has some real bargains at the moment so dont feel compelled to pay more than you want to offer just because the Agent tells you thats what the Vendor wants.To be honest as Jamie has mentioned very unlikely your Bank will tell you the best way to finance the deal as it is simply not in their interest to do so. They will spin you some yarn and offer to take 5bps off the interest rate but all in all the bottom line is the security of your PPOR.
In Qld the Disclosure Statement which accompanies the Standard Contract outlines the Body Corporate expenses but i would personally ask the Agent to obtain a copy of the last years Annual General Minutes if you are in doubt. The Vendor will have a copy and whilst he may not like to release them you can see a lot from reading them about the building going forward.
Certainly as Jamie mentioned get your mortgage broker to arrange an independant valuation or at least make sure your Broker gives a copy of the valuation the lender organises so at least you have a good read.
Keep the loans separate and not cross collateralised as you have worked hard to build the equity in your PPOR and the last thing you want to do is loose it because your Bank didnt tell you the whole truty about securities.
Financed a couple of forum clients recently who were buying up at the Sunshine Coast and there is real bargains so good luck and if you have any questions ask away..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Newbie B sorry i forgot to say if you want to shoot me an email with the address of the unit i will happily send you up a report giving you an approx valuation on the Unit and some local comparible sales.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There are ways to set up the loans so that your first home is not used as security for the second.
But, if things go wrong then your current home can still be at risk indirectly. Hopefully this won't happen though
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thankyou everyone for your very helpful advise.
Derek wrote:newbiebeginner wrote:buying an investment holiday unit on the sunshine coast,Generally speaking holiday units do not make good investments.
Make sure you speak to a good broker and talk through the financiing of this particular property. You will probably find the lending institution will see increased risk in this type of investment and will lend you funds at a lower loan to value ration than for a standard residential loan.
Are you holidaying there at the moment?
Reason I ask is holidays makers tend to associated there last holiday with a good time and romanticise about having their own unit at that location. If this is the case then you are not approaching this important decision from the right angle.
Reading your post it would appear as if everything is happening too quickly – slow down and do more research. If the property and the area still stack up after your research has been completed then make an offer based on your research.
I would not be worried about missing out on this unit – there will be others.
Hi Derek
I just wanted to say a big thankyou to you, we took your advice and spoke to a broker. We where going to make on big mistake! So thanks again
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