Being a “virgin” , i was wondering if anyone can offer a few tips. We have two IP, one valued about 120K debt 100K, the other valued about 190K debt 150K, land owned valued 200K no debt, 65K sitting in perpetual funds, ( Iknow stupid!) and am about to negotiate with NAB re offset account with further investing in mind. Any tips or am I heading in the wrong direction?? Interesting comments made about the professional packages. We had an AMA package with NAB several years ago, then the AMA moved to CBA and we lost it, but interestingly enough we have never been offered another and we fall into the salary mentioned! I thing if would be appropriate to contact a broker as well re: above. Thanks again[biggrin]
elcee
Hi Leesa
Do you have a loan attached to your PPR?Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Talk to your personal banker about the NAB Choice Package. Explain you are annoyed he didn’t offer it to you and insist on the first years fee being waived.
I often get this done for my clients.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
HI Steve,
We rent where we live.Leesa
Hi Leesa,
There are a few questions that you may like to consider as in some respects the answers may well determine what you need/want to do next.
At the moment you have a $200K block of land sitting there that isn’t giving you a lot of return. I assume it was used as security in the past for the IPs you have.
Based on the numbers you have provided the $190K property now has a LVR of less than 80% and the $120K property just over 80% as such you may be able to unentangle any securitisations that are in place – even if some LMI was required for the $120K property.
A learned broker will be able to pass comment on the benefits or otherwise of doing this.
I would then consider selling the land unless it had a definite purpose in your investment of life plans and use the proceeds as a basis for other income earning investments.
Obviously the correct course of action is really only determinable by yourself and as such having an endpoint in mind will certainly make the steps along the way much clearer.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks Derek,
Any tips on how to set up off -set accounts?Leesa
Hi Leesa,
They are very simple to organise – all you need do is ring your banker/broker and ask for your current ‘savings’ account to be converted to an ‘offset account’ and nominate which account you want it linked to.
We have a ‘savings’ account linked to our home loan which has all income (wages and rent) deposited into it. We buy using a credit card and pay off the CC every month and have electronic transactions to pay the various mortgages around the place.
This way we maximise the benefits of our rental income as a means of help to make significant inroads into our non-deductible debt.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Leesa,
Do you intend to construct an owner occupied home on the vacant block at some stage?Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Rob, Thank you for such a detailed reply, you have been very helpful. Yes,I will get advice from a broker before I go to the bank. Leesa
Leesa
Originally posted by The Mortgage Adviser:Loan 3: $160,000 LOC secured against the $200,000 land
Hi Rob,
Very curious – are there many lenders doing 80% on vacant land?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
Thanks for that – I assumed (incorrectly most lenders only did 50% on vacant land) and such will change my comments from ‘I would then consider selling the land unless it had a definite purpose in your investment of life plans and use the proceeds as a basis for other income earning investments’ to hang on and use the asset as security for LOC as per your suggestion.
I still would really like to know what the land is for[biggrin]
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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