Hi All, Just joined as we looking to buy our 1st IP. Love this site, whole wealth of information. Little background and would love to get peoples input. Built project home and moved in Dec '12'. Original loan amount was $550K and now owe $510K. We are in the process of refinancing to remove my dad who was guarantor on the loan. Bank valuation came back at $730K. So would now like to use some money to completely finish off all our landscaping. ( i know 3 years later & still not done).... And hopefully use some equity to buy our 1st IP. If any one has some advice, would love to hear it Thanks...Look forward to reading alot more on these forums Adam.
Hi Adam, welcome You've got some decent growth there, well done! You've got about $74k equity, so it's enough to use as a deposit for your IP but may not leave much spare for your landscaping (depending what you're hoping to do.) The most important thing to do here is make sure the loans are set up properly so the PPOR loan/s are completely separate from the IP deposit, to keep the interest deductible.
Thanks All, Riff going well.... I should have mentioned earlier, that when i refinance, i would borrow a bit back to complete landscaping...not using equity. Hopefully once landscaping is done ( i literally have a massive hole in the back yard after digging out 400t) that i can re-value the property to get a figure much more closer to the $800K. Looking around my area, this seems to be about the asking price atm, for similar sized house & land. Plenty more reading to go Cheers for the welcome
Welcome to the forums. Borrowing a bit back is the same as using your equity. You are borrowing money against your property which you can only borrow if you have equity.
ahhaha..blonde moment much!!!...Of course!! So i will be using some of that equity. But like i said previously, i would hope that my valuation increased a fair bit based on surrounding properties...
Are you in the new pocket on the orchard hills side? i never got to have a look around there, is that "caddens"? or am i mixed up ? (im an ex local, ill be back one day)
If there is a big difference it may increase the value. Yes or Deloitte building, whichever you want to call it.
I'm on eastern end of Caddens Rd near Gipps St.. If it's been a few years since you've been here, you probably won't recognise the area. Looks differrent now. Awesome.. I know the building, seen it come out of the ground..I'm in the Sydney Water building..but not for Sydney Water!
