Cross-securitisation

Viewing 6 posts - 1 through 6 (of 6 total)

Stuart Wemyss
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@stuart-wemyss
Join Date: 2003
Post Count: 598
July 5, 2006 - 6:22 am
For those of you that have not seen my latest article in API on cross-securitisationâ€¦ (Thought it might be of interest).
http://www.prosolution.com.au/articles/x-sec.pdf
Cheers
Stu
elkam
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@elkam
Join Date: 2006
Post Count: 722
July 5, 2006 - 11:45 am
Hello Stuart
A good read. Thanks. It has prompted me to take some action that I have been ignoring for awhile. [blush2]
Cheers
Elka
Richard Taylor
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July 5, 2006 - 12:07 pm
Stu something i tell my clients all day long.
Also just an excuse to say QUEENSLANDER.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888
Richard Taylor | Australia's leading private lender
Josh-Prestigeloans
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@josh-prestigeloans
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Post Count: 62
July 5, 2006 - 3:33 pm
Stu,
I definitly agree with the article.
Cross-securitisation can be good and bad. You have to understand what the investor wants, to get a picture of the events that might lead up in the future. Then turning the scenario onto yourself saying “what would i do in this situation”. Many people can benefit and many people will not, just depends on the situation and your experience within the industry so that you can give the best possible advice.
Joshua McEwen
Finance Consultant – WA
Mob:0430 452 497
http://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett Christie
tenorBb
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@tenorbb
Join Date: 2006
Post Count: 27
July 6, 2006 - 9:54 am
Hi Stu
A great article, I can’t wait to get my copy of API July.
Hmm…another thing I can’t wait for is to see my accountant for my annual tax pilgrimage and try and work myself out of a dilemma I’ve got myself into.
Allow me to explain for the forumites..
My 2 IP’s are cross-collaterised with my PPOR. I have a premier package with a Big4 lender giving me 0.7% reduction of the variable.
My 1st IP, a unit, is on a IO loan with 3.5 years of its fixed term to go. This ones at 6.5%. Costing me $1003 p/m – rent is $762 (after agents).
2nd IP, is a house also on IO loan with 2.5 years to go, also on 6.5%. Costing me $1352 p/m – rent is $750 (after agents fees).
Because my premium option home loan is offset, our incomes go onto our mortgage and so do the rents…
The ave interest on the PPOR is $1430 p/m.
A day b4 the 2 IP loans are due, (22nd and 24th), I sweep from the PPOR to an ‘investment account’ of the loan amounts.
I sweep the plastic fantastic on the first week of each month.
Query is….am I beyond help here![fear]
I’m willing to sell the unit more than the house.
Any ‘educated’ replies would be sincerely welcomed and replied.
Josh-Prestigeloans
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@josh-prestigeloans
Join Date: 2006
Post Count: 62
July 6, 2006 - 4:05 pm
Well the interest rate that you have is a great deal. You locked them in at a good time. At the moment, ANZ, CBA and Westpac have recently increased their fixed rates, forecast that more lenders are going to follow the move.
If you wish to break those terms then you might be scarificing some cashflow as you will probably be paying more in interest with the current market rates. However i cant guarantee that you wont pay any charges for breaking those terms due to the interest rate you currently have compared to market value at this point in time but i cant see any ‘economical cost’ incured for breaking the fixed term.
Its all about what you want to achieve, what do you want basically. Are you looking to sell one or both of them soon or wait for the fix term to curl over or are you wanting to change lenders?
Joshua McEwen
Finance Consultant – WA
Mob:0430 452 497
http://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett Christie