Hi all
I’m not asking for financial advice but some comments on my current financial structure. I’ve got three IPs
1 rental 80% loan @ 6.59% fixed for two years plan to sell in two to three years.
1 rental 80% loan @ 6.96% fixed for two years & plan to sell in two to three years
1 reno 80% loan @ 7.59% variable. plan to reno 3-4 months then sell.
Question is – is there a better option rate wise and should I be going all var or all fixed?
Would appreciate any feedbackboatie
Hi Boatie,
Your doing pretty well with your fixed rate products in todays market. Without knowing your situation in any detail, the rate you are paying for the variable rate product may be a little high, but rate is not hugely important for a reno deal where you will be selling shortly. I hope this is of some help to you.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044I am with Cameron on this one.
Your fixed rates in todays climate are attractive. Don’t both about the variable rate on a property you intend to sell within months.
Next time try and ask the lender if they have a No frills type of variable rate product but just be wary that lenders have wised up and most charge a deferred establishment fee or early repayment penalty on their variable rate loans.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Boatie
Just out of curiosity why are you looking to sell when you could look at refinancing those properties for minimal cost(as opposed to selling costs and capital gains)draw down on the equity release which you could then use to service the current shortfall in repayments and possibly buy more properties and be well on the way to building a substantial property portfolio.
Paul Meese
Onyx Finance
[email protected]
0412 850 820Thanks Cameron, Paul & Richard for the words of support.
The only reason for selling the two properties on the fixed rate is that they may rise significantly once the new $1.4b pulp mill is finally approved. While there will be a big jump in population and a hugh need for accommodation during construction – after construction the employment increase will be minimal and prices will probably drop back to current levels.
Thanks again guys.
Nigelboatie
You must be logged in to reply to this topic. If you don't have an account, you can register here.
