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Redraw for Reno or keep chipping away from wages each month

Discussion in 'General Property Chat' started by Kinks, 11th Dec, 2015.

  1. Kinks

    Kinks Member

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    hi guys

    Just a quick question from a long time lurker :)

    My partner and I are renovating our property but we're using most of our wages each month slowly chipping away .

    We purchased house for 385k 35deposit paid it down to 310k in first year then took out that lump and purchased an investment property .

    Now want to get things moving quicker on the ppor

    We're in WA ,Clarkson

    We had one fella come round to look at house to see if we could borrow against the ppor was looking at 50k to put in 2 new bathrooms , kitchen , verandah and landscaping .

    Was also toying with the idea of giving up work for six months and really getting stuck in.

    Any thoughts and suggestions welcome
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Forget that for 2 x reasons:
    1. It does not take 6 months to do a proper reno - maybe 6 weeks only
    2. Taking 6 months off work will screw up your ability to get finance to buy more property :eek: unless it is annual + long service leave, but not leave without pay.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Hope you split the loan.

    I would suggest you just keep renovating on your wages. When people borrow a lump sum to reno they tend to spend more money that they should.

    Once finished you may be able to them get a loan based on the increased value and then use this to invest.

    I think borrowing to reno may be wise where you are planning to rent this property out.
     
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  4. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    I knew you were going to say that:)
     
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Splitism is gaining momentum
     
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  6. Kinks

    Kinks Member

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    Yeah we have loan for ppor with commonwealth

    Then one with st George of 45k if I remember right for the investment which was a house and land cottage block in butler
     
  7. Kinks

    Kinks Member

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    And bo were gonna stay here it's close to beach ,shops, train station

    Can walk to all if ya not lazy :)


    Would,like to get another investment too possibly somewhere that we could hold then subdivide in a couple of years
    Cheers
     
  8. Kinks

    Kinks Member

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    I work away 2on 2 of so only have that time frame to do it in and only so many hours in the day when I'm back

    Yep it would take 6 weeks if I subcontracted it all out but what people want to charge for jobs in wa is frightening , they wanna earn a weeks wages in a day :) some of them just go down the boat ramp and see all the tradies Utes there and empty trailers at 3 in the. Arvo ha ha
     
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Regarding your CBA PPOR loan, is that in 2 splits, one for the PPOR portion and one for the IP deposit?

    If not, it'd be worth getting your structure reviewed to make sure you can claim deductions on the deposit part. If there's PPOR funds and investment funds in the one account, it will get very messy.
     
    Last edited: 11th Dec, 2015
  10. Kinks

    Kinks Member

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    Hi jess

    Yep my mortgage broker set it up as you said
     
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