Team,
looking for your advice.Based on the current valuation of my property, I believe I should be able to increase my home loan by another 150K. I am looking for an investment opportunity overseas to buy a apartment.
Assuming that I can service the increased repayments, do I need to tell the bank( one of the big 4) as to why I am looking to increase my home loan?
any tips, past experiences would be greatly appreciated.
Does this have any negative impacts on offset homeloan accounts, If you decide to turn the current PPOR into an investment?
I already had 3 loans against the mortgage, 1 for the property and 2 for investment. Offset attached to the property loan. The extra facility was split between the 2 investment loans.
Just say you're looking to buy an investment property and looking to borrow for the deposit. Once the loan is approved and settle, no one gives a rat about what you do with the money.
Home improvements like taps and doorknobs made out of gold can costly. $150k worth of improvements. 😉
Don’t forget the gold toilets
Who knows, OP could post a Find me a Bargain.
Investing in something physical (not talking shares, crypto etc) that you can't look at or touch doesn't sound like a wise investment choice…
some of the countries in south east asia where I am looking to invest have much faster property growth that could get easily outstrip increases here in Oz even after taking exchange rate fluctuations into considerations.
Who will go look at the property, look closely at it and the building?
I still have close family back in the country who will oversee the asset. Yes, they are trust worthy.
Why do people always want to touch their assets?
It's an appreciating asset. It shouldn't matter if it smells or feels like a 💩 as long as its value goes up.
How do you know it's an appreciating asset? How do you know the building is sound, the neighbourhood is decent, etc etc
Can't just say "property good, investment good"
Real estate as an investment instrument is considered to be an appreciating asset.
@spackbace: "Scared money don't make no money"
Investing isn't for everyone. People have to accept that sometimes things may not turn out the way that they want.
How do you know it's an appreciating asset? How do you know the building is sound, the neighbourhood is decent, etc etc
Because strangers on the internet with fancy car, yacht and holiday videos says so.
FBA, day trading, property investment seminars to try to sell you a road to riches. Apparently it isn't quite as good of a road to riches as doing seminars, so what does that tell you? Copy their material and sell seminars.
Assuming that I can service the increased repayments, do I need to tell the bank( one of the big 4) as to why I am looking to increase my home loan?
Wait a few months when responsible lending laws are repealed you can borrow money you can't afford, no questions asked.
Apartment = no land value
Overseas = risks (foreign exchange rate risk; foreign taxation; foreign laws/regulations; country/political risks; etc.)
Costs = who will manage the property? Reliability?
Taxation = Aust taxation implications; overseas taxation implications; CGT implications; etc.
Don't let all the risks stop greed.
I didn't mention ethics
Assuming that I can service the increased repayments, do I need to tell the bank( one of the big 4) as to why I am looking to increase my home loan?
They'll ask. You simply need to respond that you're looking to access the equity for investment purposes.
I'm currently refinancing and on the application form there was only 1 question asking about the purpose of the loan and the options were: Owner occupied, Investment Residential or Investment - Non residential.
I increased my loan to unlock equity so I could invest in shares. The bank wanted to know the purpose as well as the types of stock I was investing into to gauge the risk, so I'd say yes expect 20 questions for the use of the funds, as well as the serviceability.