Financial stuff here.
One thing we learned from our accountant Munzurul - it is best to leverage the bank's money. This is done by getting the equity from your property and use it for a purchase for another property. As we continue our journey in building our new home, we had consulted him and asked what is the best strategy for the loans on our new home and for the next investment property. He said that before going on to our next investment property, it is best to get the loan for our new home first. In the meantime, we should also get the equity ready from our current home and current investment property. This could be used for the deposit on our new home loan. A lot more to talk about here but I won't get into the details...
Our next move was to contact our broker, Reg. We were very pleased with his service. Reg, from CBA, was just fantastic to deal with. During this time, interest rates for home loans were in all-time low. Most probably, Reg can set on loans on an interest rate of 4.25% (or even less).
The Sydney market had moved heaps and this affected the current value of our properties. We asked for a valuation on our current home and the existing investment property. After a couple of days, the valuation from CBA came back way beyond our expectation. Our broker also offered us interest rate discounts and a 90% LVR with no LMI. How good is that!!! Since the equity we got were more than enough, we will have no problems in using the extra equity for our next investment property.
Now moving into our new home loan, we were set for a 80% LVR (no LMI). The valuation of our land sky rocketed after 10 months!! It came back with $110K more than the purchase price. This could mean that we will pay less deposit.