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Nikki

2 years ago

Hi Mark, If you are looking at tax minimisation, your current block of land is not doing this for you. You would either need to look at selling this or building on it depending on the location. CheersNikki

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Guido

2 years ago

Hi Mark Thank you for your enquiryCan you access your equity in the land to purchase a property? Most likely yes you can.Before you put an offer onto the property you like you should ask a property valuer to do a new valuation of your land.This will give you the security of knowing the value in todays marked and the equity you have in the land. Helping you to do the number crunching. For the rest I would suggest to you visit a local broker to fine the best deal for you.

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Leah

2 years ago

Hi Mark, The answer is yes.It is possible to asses what you are trying to achieve is possible without lodging an application and noting a credit enquiry on your file by asking you a few questions and using our tools and knowledge of lender policies. Please feel free to contact me on 04**** 024.Best wishes,Leah

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Albert

2 years ago

Hi Mark,Can the land be built on? Why buy more land if you can build on what you have?Building on the existing property would be much easier to finance and would turn the current land and it's interest cost into an immediate tax dedu****gardsAwesome Albert

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kelvin

2 years ago

Looks like you want the equity from the land to fund the deposit. As expressed before a broker would need to check the location and multiple lender policies on vacant land and the location. Current loans I have in more rural locations allow 70-80% max lending now - but it can be checked without fuss if that helps.

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Allan

2 years ago

Hi Mark, it may pay to keep the loans/securities separate and top up/refinance your existing lending to release equity for the purchase. You would be looking at a maximum LVR of 90% + mortgage insurance capped on top of the loan. This would mean that you would need access to further funds/savings in order to complete the purchase. We can carry out a valuation of the existing land free of charge and run it past the lender prior to lodging any application for credit. I am also based in Victoria and you did mention that the block was located in Victoria. Feel free to contact me on 04****03 or a****@aisl****.au to discuss further.KInd regards Allan Houliston

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Paul

2 years ago

Hi Mark, in general most lenders will only refinance up to 90% plus LMI. When was the last valuation completed and which lender holds the the current loan.

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LEE

2 years ago

Hi Mark, good question.Happy to help!Some questions though:1) which lender are you with?2) is the house mentioned above the actual construction of a house on your block of land or something different? 3) Is it an investment property as well or an owner occupied purchase?You 'could' cross the security on the land and the new purchase, with the one new lender. But this will depend on where the land is and a couple of other things.It would mean using the properties as the one security for both loans. We need to discuss this further, re: pros and cons, if you want to proceed.If you did this the numbers would look like this (approx):Values$110,000 (land)$220,000 (purchase)$330k TOTALYou might be able to borrow up to 95% of this value (including LMI) depending on the lender we choose.So, your total loan could be $313,500 (95% of $330k).Minus your $86k you owe, leaves you with $227k (including LMI).So, you might end up with a very minimal out of pocket expense, if any.There are a couple of other options too so please let me know if you want to chat.

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Wendy

2 years ago

Hi Mark, Banks have changed their policies quite a bit over the last 12 months. A high Loan to Value Ratio of 95% on borrowings for investment purposes is possible but only with one or two lenders. Investment Loan to Value Ratio's are around 90% including LMI for most lenders. Using vacant land as security is hard to find a lender now that will do it. In your scenario I would have to say the LVR (Loan to Value Ratio) of 95% is too high to achieve your goal. To use land as security the LVR would have to be low enough to use the equity and still be under 80% at the high end if you can find a lender.

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Domarina

2 years ago

Hi Mark, thanks for your enquiry. you would only be able to go up to 90% on the land only loan, although it may be less depending on the size and location of the block of land, also if it is income producing. I would also need to get your assets and liabilities, your tax return and any repayments that you would have. As brokers we can work out your borrowing capacity but at the end of the day to know whether the lender will do the loan or not, especially as it is mortgage insured the loan would need to be submitted. We can give you an idea and do all the checks we go through, we do our best, but it is still not a 100% guarantee that you would be approved. Have you got a lot of enquires on your credit file? It is fine if you have up to 3 in a 6-12 month period. Please let me know if you need any help with this. ThanksDomi

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Gary

2 years ago

Hi Mark,On the figures you have listed this is possible. However, this will depend on valuation of the land of course and where it is located. Happy to discuss this matter with you in more detail if you would like too?Regards,Gary

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