Hi there,
I just bought an investment property B. Settlement will be in approx 40 days. My intention is to renovate this property and subdivide the land into 2. Then sell the renovated property.
I also have an existing investment property A, that because of personal issues I couldn't refinance before buying property B. Can I refinance property A now, within the settlement period of B? Or during the 1st month after settlement? Because of tax implications, I need to refinance it to a fixed rate, ideally in the next coming months. Same LVR as I have before, same Loan amount. Existing bank I use does not offer good deals, that is why I need to go to a new bank and justify my finances and start a new application.
My concerns:
1)when I bought property B I included expected rental as income, but I know I am not going to rent this property B. Do I have to say the bank that this property B is vacant and not trying to find tenants? Serviceability still work for me without renting B
2) If I refinance A during settlement of B, can I have problems with the settlement? Do I need to tell bank of property B that I will refinance A?
Thanks in advance,
Fabi
I just bought an investment property B. Settlement will be in approx 40 days. My intention is to renovate this property and subdivide the land into 2. Then sell the renovated property.
I also have an existing investment property A, that because of personal issues I couldn't refinance before buying property B. Can I refinance property A now, within the settlement period of B? Or during the 1st month after settlement? Because of tax implications, I need to refinance it to a fixed rate, ideally in the next coming months. Same LVR as I have before, same Loan amount. Existing bank I use does not offer good deals, that is why I need to go to a new bank and justify my finances and start a new application.
My concerns:
1)when I bought property B I included expected rental as income, but I know I am not going to rent this property B. Do I have to say the bank that this property B is vacant and not trying to find tenants? Serviceability still work for me without renting B
2) If I refinance A during settlement of B, can I have problems with the settlement? Do I need to tell bank of property B that I will refinance A?
Thanks in advance,
Fabi