A client who was looking to grow their property portfolio came to us recently. They already had their own home and they wanted to buy and construct their first investment property. They were looking to get a pre-approval done. They were looking to take out some equity against their family home to help with the construction of their investment property.
We sat down to discuss their circumstances and see how to move forward from there. We found out that the owner-occupied property that they had was under a family guarantee. This meant that it was partially secured by their parents. This is an extra sort of fund backing.
First of all, we did a valuation on the owner-occupied property which came back excellent. It was higher than expected. The valuation also came back with a higher rental appraisal which was very helpful. The client was then able to release the parents from the loan. This resulted in them being able to take out the extra money that they needed for the construction.
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