Hi guys!
I bought my 1st IP two years ago in Taringa, Brisbane. Looking to buy 2nd IP in the next 12 months.
My current loan balance is $339,000 and is P&I. I really want to change to interest only payments so I can redirect that money to a new investment and to keep deductible interest high. My problem is that my bank said I need LVR below 90% to be considered for IO.
Two factors have changed since the initial valuation of $370,000, firstly I have done a renovation to the kitchen (stone bench top, new cupboards) and put floorboards throughout the unit. Secondly, the unit had city "glimpses"when we bought it, now a large tree has been removed and the view is substantially better.
So I guess my questions are, is it worth getting the property re-valued? Or is there another option I am missing here?
I was thinking that with the conservative valuations most banks give, this would not be in my favour in the current climate. However, a recent unit sold for 370,000 with no city views and minor renovations.
Thanks so much in advance, this forum is such a wealth of information!
I bought my 1st IP two years ago in Taringa, Brisbane. Looking to buy 2nd IP in the next 12 months.
My current loan balance is $339,000 and is P&I. I really want to change to interest only payments so I can redirect that money to a new investment and to keep deductible interest high. My problem is that my bank said I need LVR below 90% to be considered for IO.
Two factors have changed since the initial valuation of $370,000, firstly I have done a renovation to the kitchen (stone bench top, new cupboards) and put floorboards throughout the unit. Secondly, the unit had city "glimpses"when we bought it, now a large tree has been removed and the view is substantially better.
So I guess my questions are, is it worth getting the property re-valued? Or is there another option I am missing here?
I was thinking that with the conservative valuations most banks give, this would not be in my favour in the current climate. However, a recent unit sold for 370,000 with no city views and minor renovations.
Thanks so much in advance, this forum is such a wealth of information!
