Stuck at 1 IP

Who did you speak to at your bank? I trust it was a loans officer who was quoting plicy and not just his well intentioned advice?

Maybe you need to be looking at another lender – or at least have that lending officer believe you are!

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hmmmmm…time to change banks ??? or try going through a good mortgage broker.

I used to think ( many years ago) that the bank manager was god and that it would be a good thing to build up a relationship with him.

The branch went through 3 managers in the two years I was dealing with them…two got made redundant, the first one told me he was considering taking up a lawn mowing round ( buying himself a job )to try his hand at doing something different….!!
I came to realise that they are very much human, and very much a slave to the bank…nothing more nothing less..

BTW…we are currently under construction and the bank seems to be happy to use the valuation on completion ( due Nov) as their LVR and have not knocked back further borrowing in the meantime.
In fact, they have also factored in future rental potential ( after completion of construction )to add to the income side for further borrowings..

I reckon you need to ask around a bit more..

KP

Hi Boardy,
I have been looking at your figures and please correct me if I am wrong in any area.Figures based on 7%interest only over 25 yrs
$115K loan return $155pw repay $167pw
$210K loan PPOR repay $370pw P&I
$145K loan return $170pw repay $211pw
With the addition of your new investment property you will be up for $423 pw.Now if you have the properties managed for approx 7% it will cost you approx $23pw, rates I’m guessing for 2 properties $1600 per year approx $30pw, Insurance $400 approx $8 pw. One thing I havent included is repairs/maintenance or little upgrades to your properties. The amounts adding up to $423 pw for all your properties. Your investment properties will cost you approx $142pw not counting repairs.Now I guess you will get some taxation breaks but sorry I cant speculate as to how much you will get back.My wife recently went through all our properties with a fine tooth comb, and after taking out all the fees and expenses we certainly werent making as much on our properties as I thought and now I have some understanding why the bank is reluctant to loan us more money at present. Keep in mind when the bank calculates how much they can lend you they always allow for an increase in interest rates and a vacancy period. On the other hand our properties have had some great capital growth which for a number of them we have realized it has enabled us to pay our mortgage off and reduce some debt. Our original plan was to buy and hold but our plan has changed with the economic situation.

Martin