Browse Forums Home Finance 1 Apr 19, 2013 4:23 pm Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Investment property questions 3Apr 20, 2013 8:16 am Good answer from Hank Just before you buy your investment property don't forget about pre purchase inspection, you don't want your investment to hit the rocks. 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: Investment property questions 4Apr 20, 2013 9:46 am Thanks both of you! That's good news! So just to clear up about the equity, are you saying that our home already has equity in what we have paid in deposit even though we haven't started repayments yet? Another thing that occurred to me is valuation. If the bank undervalued our current house, do we then have to calculate equity based on that, or on how much we actually paid for the house? We were undervalued quite a bit, unfortunately. Also, you say 10% deposit is perfect, but I assume the same rules in regards to LMI apply to investment properties? Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Investment property questions 5Apr 20, 2013 12:11 pm Cheers Build-expert i try to help Malin this is correct, as you have had your 10% already in genuine savings moving into this home it has been validated as "genuine" so far, so once it settled technically you have had the funds for 3 months already. If your house is valued and it comes in low this will effect you in a negative light, but there are instances where you can proceed with a new lender who does not know of your situation who will not value your property as it is not linked to the new application. You will then be able to give a value that you "believe" is the worth of your home. Being undervalued is a kick in crotch, but remember is a long term thing not instant profit. yes it is the same rules at 90% the banks can capitalise the LMI on top. You will need 10% deposit + Stamp duty and fees. Or if 10% is all you have you will need 10% which will cover a 5% deposit + stamp duty and fees. Re: Investment property questions 6Apr 20, 2013 5:27 pm jb_money Cheers Build-expert i try to help Malin this is correct, as you have had your 10% already in genuine savings moving into this home it has been validated as "genuine" so far, so once it settled technically you have had the funds for 3 months already. If your house is valued and it comes in low this will effect you in a negative light, but there are instances where you can proceed with a new lender who does not know of your situation who will not value your property as it is not linked to the new application. You will then be able to give a value that you "believe" is the worth of your home. Being undervalued is a kick in crotch, but remember is a long term thing not instant profit. yes it is the same rules at 90% the banks can capitalise the LMI on top. You will need 10% deposit + Stamp duty and fees. Or if 10% is all you have you will need 10% which will cover a 5% deposit + stamp duty and fees. Thanks, jb_money! Out of curiosity, I just went onto Westpac's website and used their equity calculator, and it tells me I have no equity. I don't get it. Only when I plug in fictional numbers that equates to the loan amount being 20% less than the house value does it start giving me equity. Can you use equity AND new genuine savings as a deposit? ETA: Just tried the NAB calculator, and it's giving me better numbers, more in line with that you said, jb. I put in value of the house at $390,000, and loan at $360,000, and it tells me I have $30,000 equity. Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Investment property questions 7Apr 21, 2013 11:05 am Following the NAB calculator is closer to what were talking about, there are other genuine savings calculators out there if you keep looking. You have a combination of both that will help. As long as you have enough equity and deposit it is possible to move forward. Of course i have not gone through the rest of your situation to give a better assessment. Re: Investment property questions 8Apr 21, 2013 11:21 am Thank you so much for your help, jb! I really appreciate it! Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Investment property questions 10Apr 22, 2013 8:14 pm MalinViktoria Thanks, jb_money! Out of curiosity, I just went onto Westpac's website and used their equity calculator, and it tells me I have no equity. I don't get it. Only when I plug in fictional numbers that equates to the loan amount being 20% less than the house value does it start giving me equity. Can you use equity AND new genuine savings as a deposit? ETA: Just tried the NAB calculator, and it's giving me better numbers, more in line with that you said, jb. I put in value of the house at $390,000, and loan at $360,000, and it tells me I have $30,000 equity. Have to say both those calculators are wrong in their own way. The Westpac one only takes into account equity up to 80% LVR as you found out but they will allow up to 90% for equity access with the use of LMI. The NAB calculator does show you the actual equity but there is a difference between actual equity and usable equity, which once again would be a maximum of 90% of the value of the property. So if your property is worth $390,000, then the usable equity (if you wanted to pull funds out for any purpose) cannot exceed $360K x 0.9 = $351K. Therefore if your current loan is $360K, you aren't able to top up your loan as it is excess of the maximum allowed amount. LMI is not such a bad thing with an investment property as it is with an owner occupied property because the LMI amount is tax deductible over 5 years or the life of the loan (whatever comes first). There are also other little tips and tricks that you can engage to pay down you owner occupied property faster while at the same time maximising your tax deductibility through the investment loan. Cheers Tom You might be able to apply to divert the sewer at your expense. In NSW you would contact a Water services co-ordinator and they would give you advice as to whether or not… 1 17491 Ask for some kickplate to be added and also for tradies to be requested to use lanyards on tools on that side of the building. Be respectful and have the discussion… 1 2018 The setback from the kerb is 4m. It is council land to provide an area for services like sewer main, gas mains, water mains, underground power or poles for overhead power,… 4 2742 |