All Topics / Help Needed! / Help with loan refinancing/restructure
Hi everyone I’ve just joined the forum and have picked up a few pointers already, but I am in need of advice.
I’m currently living at my PPOR and planning to buy an IP after my fixed loan finishes in March 2015. For a simple explanation, let’s just say my house is worth 600k and my loan amount is 500k. One option was that I was thinking of refinancing my current loan to purchase this IP.
Another option (I prefer this option) was to change my PPOR into a IP(refinance into a investment loan), spend about 20k to renovate it while I will be now staying at my in laws. Now here’s where I’m not sure of. Let’s say I get a valuation after the Reno and it comes back that the house is now worth 650k and rent increased by $50/week, would that allow me to get a bigger loan than option 1 keeping in mind that I have more income (my pay + rental ) and no expenses (staying at in laws)? What do you guys think?
I hope I haven’t missed something because the second option would be ideal
Thanks
Vinh
Hi Vinh
Welcome aboard :-)
If your current property is valued higher after the renos than you could potentially access more equity which would be used to cover the deposit/purchase costs on your next property.
The extra $50 p.w rent will help with your borrowing capacity – so will having no rent/boarding expenses. However, it’s hard to give a more detailed responses without knowing the finer details of your situation.
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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