Give us a call: (09) 486 4719
btn book free consultation


Email me when new posts are made to this blog

Financing Renovations on your Properties

March 21st, 2019.

Financing renovations by topping up on your home loan can be the easiest and cheapest way to get the job done if you don’t have access to the cash. ‘Topping up’ means increasing your existing lending with your existing bank. In some cases, if it makes more sense economically speaking, it could even be worthwhile refinancing (moving to another bank) for a better deal on your existing mortgage AND the new funds being requested.


When looking at things from an investment perspective, noting several changes occurring in the marketplace around investment properties, it always pays to view things as a business decision by weighing up the costs and benefits.


What you pay in dollars for the renovation work you’re looking at can warrant two major benefits that investors should be looking at:


· Increasing the Value of your rental property:

o Properties are one of the few assets that you can determine (to some extent) the value of your investment property by renovating and adding value. Renovations can come in two forms – cosmetic; new paint, carpets, landscaping, heat pumps, etc. and structural; adding a pool, adding a level, etc.

· Increasing the Rental Income of your investment:

o It would pay to discuss what renovations would actually get you a higher rental income with your Property Manager. Tenants may view things quite differently to you as a landlord, and in addition different locations/demographics would pay for different additions, so it is worthwhile getting insight before you spend money which wouldn’t warrant a return.


When looking to top up on your mortgage to fund renovations, you can work off either 80% on your owner occupied property, or 70% on a rental property, as the maximum Loan-to-Value ratio. If your lending is below this ratio, you then have ‘useable equity’ available. An example of this would be:


o Your home or rental is worth $1,000,000

o You have existing debt of $500,000

o Your ‘useable equity’ in this scenario would be $200,000 to $300,000 depending on whether it was an owner occupied property or investment.


In some cases, some of these costs and this debt may be tax deductible, and a good accountant can provide insight here.


Equity isn’t the only component to understand, and proving serviceability will be equally important. Feel free to discuss your options with us here.

Contact Ryan today to learn more about how by using the correct finance strategies you can maximise the property value and rental yield on your investment property. Ryan provides finance strategy meetings as a complimentary service and there is no obligation to proceed to the next stage.

Enquire Now


Samuel says ...
Now you can deal with the different finance ministries to enhance your business and skills as well. I am also interested in review that can help the various ideas by presenting the new properties.
MarioDuffin says ...
The projects are so cool and Your talent is full of surprises. The design is super amazing and it is just <a href="">grade miners review</a> amazing. One day i would love to avail the services of you. Thank You for telling me about this information.
sam harries says ...
I have bookmarked your site since this site contains profitable data in it. I am extremely content with articles quality and introduction. You're the best for keeping extraordinary stuff. I am especially grateful for this site. energy comparsion site
sam says ...
Incredible Article it its truly instructive and inventive update us as often as possible with new upgrades. its was truly important. much obliged.  ola ec sengkang
sam says ...
This was a truly awesome challenge and ideally I can go to the following one. It was alot of fun and I truly had a ball..  download candy crush soda for pc
dssd says ...
I expected to thank you for this wonderful read!! I certainly loved every single bit of it. I have you bookmarked your site to take a gander at the new stuff you post. babies clothes on sale
sasa says ...
That's why marketing and advertising that you simply applicable exploration previous to publishing. It will be easy to write down superior write-up that way. Miami rental Lamborghini
sa says ...
I have read your blog it is very helpful for me. I want to say thanks to you. I have bookmark your site for future updates. Bath And Body Works Free Shipping


“ *As a rule, we advise that you contact us as early as possibly to secure the most suitable time for your consultation.
Product Query

First Name*


Kris Pedersen Mortgages Limited

+64 9 486 4719
Skype: Kris_Pedersen    
Takapuna Office
388 Lake Road
Auckland 0622
Newmarket Office
Level 6
135 Broadway
Auckland 1023
Postal Address
PO Box 33650
Auckland 0740