Ok, So lets go back to the GFC days of 18 months back and the premium property market in Melbourne is heading south at the rate of knots.
A mill plus property in one of Melbourne's best streets comes on the market and gets passed in. They cant sell it for love or money. Then they try to rent it. No joy. So they try more agents, still no joy.
At the peak of the slump along comes dumb old me. I'd sold my ppor 12 months before (when the market was white hot) and bought a couple of IP's. So, I wanted to buy, but needed to rent.
I agree to rent at their asking price for 2 years. And also agree to buy at their asking price within that 2 years. We sign an option agreement for a non-refundable 30K and I move in.
Fast forward to now. I am sitting on a val (from a panel valuer) that I had done last week for 1.8 Mill. I hold the option to buy for 1.3 Mill. So far I'm pretty pleased with where this is heading.
Here's question number 1: When I go to finance, will the bank look at the contract or the val?
Now I had originally planned on offloading an IP to pay for the deposit for this property.
Here's question number 2: Now given that it appears I've done OK with this option, and my IP is doing OK. I'm wondering is there a way of avoiding selling my IP?
PS1: The IP is worth around 790-800 and carries a mortgage of 550
PS2: Serviceability isn't a problem.
Interested in your thoughts guys. Cheers
A mill plus property in one of Melbourne's best streets comes on the market and gets passed in. They cant sell it for love or money. Then they try to rent it. No joy. So they try more agents, still no joy.
At the peak of the slump along comes dumb old me. I'd sold my ppor 12 months before (when the market was white hot) and bought a couple of IP's. So, I wanted to buy, but needed to rent.
I agree to rent at their asking price for 2 years. And also agree to buy at their asking price within that 2 years. We sign an option agreement for a non-refundable 30K and I move in.
Fast forward to now. I am sitting on a val (from a panel valuer) that I had done last week for 1.8 Mill. I hold the option to buy for 1.3 Mill. So far I'm pretty pleased with where this is heading.
Here's question number 1: When I go to finance, will the bank look at the contract or the val?
Now I had originally planned on offloading an IP to pay for the deposit for this property.
Here's question number 2: Now given that it appears I've done OK with this option, and my IP is doing OK. I'm wondering is there a way of avoiding selling my IP?
PS1: The IP is worth around 790-800 and carries a mortgage of 550
PS2: Serviceability isn't a problem.
Interested in your thoughts guys. Cheers