Need Level Headed Advice

Viewing 5 posts - 1 through 5 (of 5 total)

JellyB
Member
@jellyb
Join Date: 2003
Post Count: 5
May 23, 2003 - 1:17 am
Hello All. I have been benefiting from your combined wisdom for a couple of months now and I thankyou. At present I have used the equity in my home purchase an IP for %69000 that rents for $120 per week. My problem is that it is in a block of 12 and another is up for private sale but the bank has knocked me back for another investment loan because of concerns my income will not service both loans if they are both untenanted, both of them are at present. I could pursue it with a separate institution using borrowed money for the deposit, s I see it as a good investment. I realise I could be being a bit gung ho about pursuing it. Any advice would be welcome. Thankyou!
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 23, 2003 - 5:30 am
JellyB
That happens sometimes. Bank (or LMI) is worried about having too many units in the one block. It increases their risk. Maybe there are other units in the block with the same bank as well?
You could just ask for an increase in your loan, take out the extra funds and go to a different bank using those funds as deposit.
That’s a good return too so maybe the bank is only taking a much lower rent into account in the serviceability test.
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
AD
Participant
@ad
Join Date: 2002
Post Count: 636
May 25, 2003 - 11:31 am
My only thought Jelly is that if the dal works for you make it happen. If that means going to a bank which is not so narrow minded then do it. Just be sure of your numbers and be confortable with the risk.
Enjoy
AD [:0)]
(Andrew)
“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
JellyB
Member
@jellyb
Join Date: 2003
Post Count: 5
May 27, 2003 - 12:01 am
Thankyou for your replies. I am going to do it, I am researching alternatives right now. Your positive feedback helps!
Tony29
Member
@tony29
Join Date: 2003
Post Count: 1
May 27, 2003 - 6:25 am
quote:
Thankyou for your replies. I am going to do it, I am researching alternatives right now. Your positive feedback helps!
Jellyb,
I have just joined propertyinvesting.com and I think this forum is great.
My company is able to help with property investment financial advice with no obligation or cost. Would love to help.
Regards,
Tony
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