Hi everyone just wondering what the chances are off getting a loan across the loan whilst a property is vacant. I have 9 properties currently tenanted and one I just bought that is currently untenanted and needs a bit of work (happening in the next week or so). I've found another property I want to buy and I always use quick deals(settlement asap and put down the deposit on the day the price is agreed, no cooling off etc) I desperately want this one to add to my collection. Will most banks be iffy especially if using equity or should I pay with a 20% deposit?
Applying for new loan whilst a IP is vacant
- Thread starter The Dark Knight
- Start date
You should be fine mate, hopefully you have a good broker! my broker just used suburbs median rent and they were happy with that: )
You just need a rental appraisal letter from an agent.
One or two lenders are a pain in the neck about it and want existing property to actually be tenanted.
Most however, will accept a letter from the managing agent stating what the anticipated rental would be. Helps if it's backed up with the most recent rental statement you've got.
The key to getting the banks to agree to things a little out of the box is to understand why they want something and to address that question. In this case they want to know that it is genuinely going to be rented and that a managing agents letter isn't outrageously over estimating the potential rent.
Most however, will accept a letter from the managing agent stating what the anticipated rental would be. Helps if it's backed up with the most recent rental statement you've got.
The key to getting the banks to agree to things a little out of the box is to understand why they want something and to address that question. In this case they want to know that it is genuinely going to be rented and that a managing agents letter isn't outrageously over estimating the potential rent.
This. Get this, explain its newly purchased and you're doing renovations and you should be right. May be a little harder if its in an area with a 20% vacancy rate though.
Some banks have stated policies to not accept rental appraisals as evidence for existing properties you own. Can usually get an exception, but may add a day to to the financing procedure as the credit assessor usually needs their managers discretion to get around.
Cheers,
Redom
Thanks for the replies everybody. Time to get cracking on it 
