Browse Forums Home Finance 1 Apr 18, 2021 12:56 pm Thinking of selling existing 400K home and buying another, but we may want to get a 200K loan to supplement the 400K. Does it make a difference for a loan approval whether that 400K is in the form of a house, or money sitting in the bank? Not sure whether to sell or keep before attempting loan approval. thanks for any thoughts Re: Getting a loan approved - better to have house or cash? 2Apr 18, 2021 1:50 pm Prizm Thinking of selling existing 400K home and buying another, but we may want to get a 200K loan to supplement the 400K. Does it make a difference for a loan approval whether that 400K is in the form of a house, or money sitting in the bank? Not sure whether to sell or keep before attempting loan approval. thanks for any thoughts Re: Getting a loan approved - better to have house or cash? 3Apr 18, 2021 2:17 pm Prizm is correct - both are assets. The answer will be around affordability, if you keep the house can you show affordability for the loan vs if you are borrowing less due to the sale proceeds, and in this you’d also potentially factor in rent (if you plan to rent it out), tax etc. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Getting a loan approved - better to have house or cash? 5Apr 18, 2021 5:05 pm Prizm Thanks. What I think is common sense doesn't always match the bank's policies. Lol! Reason I have a job 💁🏻♀️ Ask friends and family to recommend a broker - they can tell you what will and won’t work. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Getting a loan approved - better to have house or cash? 6May 20, 2021 9:26 pm There is no difference as for me so don't worry about that Re: Getting a loan approved - better to have house or cash? 7May 21, 2021 10:55 am Prizm Thinking of selling existing 400K home and buying another, but we may want to get a 200K loan to supplement the 400K. Does it make a difference for a loan approval whether that 400K is in the form of a house, or money sitting in the bank? Not sure whether to sell or keep before attempting loan approval. thanks for any thoughts Money is just plastic trash, they are printing it by the truckloads everywhere in the world. It means it loses its value. If you want to retain your wealth keep your house and buy another making sure you can support loan repayments with comfort. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Getting a loan approved - better to have house or cash? 8May 21, 2021 2:14 pm building-expert Prizm Thinking of selling existing 400K home and buying another, but we may want to get a 200K loan to supplement the 400K. Does it make a difference for a loan approval whether that 400K is in the form of a house, or money sitting in the bank? Not sure whether to sell or keep before attempting loan approval. thanks for any thoughts Money is just plastic trash, they are printing it by the truckloads everywhere in the world. It means it loses its value. If you want to retain your wealth keep your house and buy another making sure you can support loan repayments with comfort. while not wrong, there are other strategies that may be of benefit depending on the individuals financial circumstances - ie, selling the home, and using the equity from the new purchase as a deposit on another investment in a more lucrative area can result in some very sexy tax benefits and opportunities for higher cap gains. Again, depends on the circumstances. A house itself is a depreciating asset. The land is where the value is. If that's a 400k house in the middle of bumblefk nowhere on land where the value has been low and static (like in a mining town or area reliant exclusively on mining or tourism economy) , its losing money. Ive seen 1.5M homes in airlie beach go for firesale prices of 400k or less. Great for retirees, not so much for an investor. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 12232 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19861 If your patio is going to be 35 sqm then that's going to need Council Approval. The fact that they previously approved your 25sqm patio will be irelevant 1 5801 |