Hello
I am looking a bit down the track but I'd like to know what the next few steps are.
I am building an IP in an area of what I believe should be good growth. The IP has been valued by bank as 290k (costing me 280k) which I am assuming is ok. Anyway, assuming the property grows at an ok rate and I end up thinking that I might be in a position to purchase a second property, do I approach the bank and ask them to do another valuation to see if I have enough equity to refinance my loan in order purchase a second property. Are banks easy enough to approach and ask this, could anyone provide a ball park figure of what it costs? Do banks use their own valuers all the time or would they agree to an independent licensed valuer?
I am thinking that if the bank has their own valuer, I should still get a second, independent opinion. Is this a bit of overkill or would anyone think it would be a waste of time/money?
I have had a bit of a read of a few things (including Michael Yardney's recent book and some of Jan Somers books) and I think that I have a basic level of understanding of the concepts of buy (in the right stage of property cycle) hold then use capital growth to 'pyramid' my portfolio but I know that I need to allow capital growth to occur before I can do much else.
Ideally I would like to gain a portfolio of about 7 or 8 properties of the next 15 to 20years. For anyone that has a few properties, did the 'use equity to help buy the next property cycle' get easier to follow after you actually bought your second property?
Any thoughts/comments would be appreciated.
Regards
Smouch
I am looking a bit down the track but I'd like to know what the next few steps are.
I am building an IP in an area of what I believe should be good growth. The IP has been valued by bank as 290k (costing me 280k) which I am assuming is ok. Anyway, assuming the property grows at an ok rate and I end up thinking that I might be in a position to purchase a second property, do I approach the bank and ask them to do another valuation to see if I have enough equity to refinance my loan in order purchase a second property. Are banks easy enough to approach and ask this, could anyone provide a ball park figure of what it costs? Do banks use their own valuers all the time or would they agree to an independent licensed valuer?
I am thinking that if the bank has their own valuer, I should still get a second, independent opinion. Is this a bit of overkill or would anyone think it would be a waste of time/money?
I have had a bit of a read of a few things (including Michael Yardney's recent book and some of Jan Somers books) and I think that I have a basic level of understanding of the concepts of buy (in the right stage of property cycle) hold then use capital growth to 'pyramid' my portfolio but I know that I need to allow capital growth to occur before I can do much else.
Ideally I would like to gain a portfolio of about 7 or 8 properties of the next 15 to 20years. For anyone that has a few properties, did the 'use equity to help buy the next property cycle' get easier to follow after you actually bought your second property?
Any thoughts/comments would be appreciated.
Regards
Smouch