Question about equity

Discussion in 'Loans & Mortgage Brokers' started by Xie, 21st Oct, 2015.

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  1. Xie

    Xie Well-Known Member

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    I assume you have to pay for valuations? How much can I expect?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    It depends on the lender - for many it will be free. Who are you with?
     
  3. Xie

    Xie Well-Known Member

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    suncorp
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

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    They don't. They're going to assess your equity release loan with the existing rents and income in mind.

    You then apply for a completely separate loan for the new property when you find one, using the above equity loan as the deposit. At this stage, they'll include the proposed property's rent into your calcs.
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I'm pretty sure you'll need to pay with them, not 100% as I rarely use them. One thing to note is that unless you're on a very high income you may not service due Suncorps tight calculator - get a broker to run servicing before you apply.
     
  6. Xie

    Xie Well-Known Member

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    will do thanks
     
  7. Phantom

    Phantom Well-Known Member

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    You need to look at the bigger picture. Is it really costing money? o_O
     
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  8. Nathan Simon

    Nathan Simon Well-Known Member

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    Yeah I understand that. It's just not something I would do
     
  9. Big Will

    Big Will Well-Known Member

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    I would rather lose $20 pw and earn 1% extra each year in CG.

    Than the property be $20 pw positive geared and lose 1% CG.

    As the difference on a $500,000 property is $5,000 per year (compounding) compared to $1,040. Remember you need to pay tax on that $1,040 so even at 30% you only walk away with $728.

    So really it is actually costing you over $4,000 per year to own the property that is positive geared.

    Even if you wanted to extract the $$$ out you could still withdraw $4,000 (of the $5,000) and keep an 80% LVR.
     
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  10. Phantom

    Phantom Well-Known Member

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    Like I said, you need to look at the bigger picture. Some people just can't see it. Your calcs make it very clear. Yet......o_O
     
  11. D.T.

    D.T. Specialist Property Manager Business Member

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    Some people make it sound like its one or the other. Why not both? ;)
     
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  12. Phantom

    Phantom Well-Known Member

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    I'm not suggesting for a second that there is only one way. That would be very closed minded of myself. I will always try to find a way to better my position. If there is a way to money using different strategies (in property) I will try or at least attempt to try it. I think that is a key element of success. Adapting and increasing any possible chance to do better.
    If one situation renders one capable of success depending on a course of action, then jump on it. If another situation requires a different approach then adapt and then jump on that. The is no one way.:)
     
  13. Big Will

    Big Will Well-Known Member

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    I call that balance ;)

    As you can reach a serviceability wall if all negatives or you can find it difficiult to get deposits if all CF+.

    My personal strategy is 2 CG:1 CF+ as the CF+ will just ease pressure and in time I will reassess the strategy as I may no longer need the CF+ as I would be reducing my risk by having larger deposits on the CG turning them into +.

    That's my initial plan anyway.
     

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