You may think that the market determines the price of property, but have you ever thought what would happen if the bank thought otherwise? An incorrect valuation by the bank can literally wipe tens of thousands of dollars from the value of your assets and these days it can happen all too frequently.Myth #3 The bank valuation on your property is the final word on how much you can borrow or refinance through your lender.
Usually when we borrow money from a bank, either to refinance or to buy direct, a bank will conduct a "bank valuation" on the property to ensure that the value of the asset is in line with the price we have prepared to pay for it.
By Larry Schlesinger Friday, 09 March 2012
Suburbs close to beaches and the harbour feature prominently in John McGrath’s list of top 10 capital growth hotspots for 2012.
Most notably, Coogee in Sydney’s eastern suburbs is the only location included as a hotspot for houses and units.
A woman who had owned three investment properties for years approached me recently because she thought they were not earning as much as they could. We found that all of the properties were rented at much less than market value – and she was missing out on $17,000 a year in rent.
The simplest way for her to improve her properties’ performance was to put up the rent in line with other comparable properties. But most owners will have to be more creative to generate greater income from their investment properties.
Investors say don’t do it, but after reading this you may disagree. I was always told that as an investor I should be using Interest Only loans as they made my payments more affordable and I could leverage into the next property quicker. Reality has proven different though and there is hidden value in using a Principal & Interest Loan.
Paying down your loan using a Principal & Interest Repayment is a waste of time. Smart investors use Interest Only Loans.
Time is money – your money! At Empire, looking at potential investment properties most days gives us a sharp eye for the right investment property and a day-by-day understanding of the property market.
Even if it takes a Buyer’s Agent 8-weeks to find the perfect property, you, the client are involved in very little of the stress or negotiation that leads to a successful result.
Enjoy the luxury of more time for family and friends while again giving your career 100% of your attention.