Who is Accessing Equity?

Yep, all NSW.
The state certainly isn't dead yet. Bank Valuers are being more conservative in Western Sydney - however the ripple areas (Blue mountains, central coast) are still in demand and experiencing good competition.
In saying that - I'm not sure my next purchase will be in NSW. Need to evaluate a few things first.

 

I'm currently releasing to just under 90 but I'm in the aquisition phase of building...plan to do this up to roughly 2 mill, and then start purchasing at 80 up to 4 mill.

I have a good deal as I work for one of the big 4 so can borrow up to 90% without them without paying LVR so taking advantage of that whilst I can...have loans with other banks too but they were refi for equity release as I got a much better val to move.

I expect with my plan about I'll run into issues with some lenders so may need to bring the LVR's down a little in the banks favour to continue to get finance.

 

I'm thinking of accessing equity in order to buy in Sydney or Melbourne. I feel like I'm coming out of hibernation. I haven't purchased a property since 2013 though I've built 2 granny flats. So I'm looking for a good mortgage broker!

 

Melb over Syd, both markets have been booming since 2013, and some areas have already started to peaked

Keep reading, there is a thread I started on what is happening in the markets, may be worth a read

all the best

 

Thanks for the feedback on NSW.

I was chatting to my mortgage broker regarding valuations and he stated that in some areas in Melb the valuations are coming in much higher than clients estimation and that he had not seen this before. Most banks would normally use the lower client estimate..... Interesting times in Melb, I am not sure when this boom is going to end, its turning into a mother...

 

What do you mean bank hang onto it ? There is no money for anyone, it is only created once a loan taken out.

Also, you assuming they will always just say sure, here is the cash, often they can hold and only release with a contract or proof of approved use, will depend on your position & LVR and lender, but they do not just hand over willy nilly - for the benefit of newbies

 

120K equity release earlier this year on a block I purchased and built a house in Wynnum in 2013.

 

When rates rise a few times, maybe not due to RBA, but other external, that will give everyone who has been on the hair of the dog the smackdown

Most places I know of had pull back when APRA changes came in up here. Did that happen there briefly ? I am sure it would have.

It is purely cheap money ATM IMO

 

Before we sold an IP recently we released the title from the bank by having our other Ip's revalued. This allowed us to keep the original borrowings of the IP we just sold and this is fully offset from the proceeds of the sale.

We plan to invest the money gradually into LIC's, ETF's and direct shares to build our income stream.

Got to love property!!

 

Our broker recommended releasing equity from our current PPOR to purchase our next PPOR (so we leave our current cash in an offset) and turn current PPOR into IP. We are still a little confused about our options so won't make any moves until we are certain this is our best option. We are in NSW

 

Releasing 81000 at the moment thanks @Redom

 

Yes, it is cheap money at the moment, but if what I am reading is correct we wont see interest rate rises for a while, in fact may see another rate cut in the near future?

I think the smart money has already purchased and either accessed equity or sold out of booming markets.

I am guessing those who get in trouble probably don't manage debt/LVR, get the timing wrong and continue loading up at peak, buy wrong product, buy in high risk areas ie mining towns etc.

we will see some cooling off for sure, trick is to know when to get in and when to get out.

MTR

 

Yes - you are absolutely correct...it was more of a general comment that if I have equity in my properties that I can access via the loan approval process and I meet servicing requirements etc I would prefer to release that equity and even if I dont use it straight away I'd prefer to have it available in my account, rather than tied up and awaiting for me to go through the above process to release it...or even worse, not being able to release it all due to servicing issues etc etc.

 

Hey there - how is the market in Wynnum going at the moment? I have started to look into the area, Wynnum west\manly etc for a block with potential to build a duplex etc. Looks like a great area with good growth potential???

 

Looking at releasing equity in my Melb property to fund another melb property I have sourced off market, buy Reno and hold.
Waiting on response from vendor but if goes to plan should be able to pull my equity out again in 6 months with the property breaking even cash flow wise.

 

There's lots on the forums, have a trawl of the finance section

 

That sounds reasonable if the new PPOR might become a rental at some stage. Always good to have control of your cash if possible.

 

Apart from the blocks for sale along the waterfront, just about all blocks of land are going between 350-400K. There is one under contract on Cameron pde for 335K, but this block (from what I recall) has an easement running down the centre of it, and a special slab(bridge foundation) would be required to build the property - i think it was on the market for about 2 years and is finally under contract - still not bad price being across the road from the railway.

I purchased the land (on the property I pulled equity out of) for 235K in 2013, and now there are two blocks of land (same size) about 200m away, going for 399K each, so I would say the area has moved

My last purchase in the area (east of rail line) was about a year ago for 401K, and has been rented continuously. Rental Yield is a bit low at 4.9%, but has been rented continuously, but can't see anything for sale in that pocket for under 480K.

 

curious where in Melb do you think is looking good?

 

hoping to have some equity releases to purchase a property or two and increase my buffer for the future.