Here’s one for forumites to get their collective teeth into…
Aus PPOR valued at $375k – Owe $220K – $135k personal LOC plus $85K investment LOC…
Investment LOC currently has $48k sitting in it being slowly eaten away by monthly interest…
4 x CF+ IP’s in NZ owned through Aus company & trust set up – Cannot refinance further – Wont sell 1 or any – Not quiet enough CF+ to bring back any realistic cash each month…
Wanted to buy block of land in QLD for 135K – Build 4 bed 2 bath for another $135k – Sell for profit.
Biggest problem is serviceability for new construction loan – collective annual gross income $43K…
Finance broker has said “Best I can get on Low Doc Construction is 80% at 8.5%”
Doing the math this just does not work out… Soooooo question to forumites is there something I’m missing or can you suggest another way to invest the 48K sitting in investment LOC to create cash flow?
Stumped and feeling boxed in[grrr]… Cheers, Nobleone
Acronyms explained;
PPOR = Principal Place Of Residence
LOC = Line Of Credit
CF+ IP’s in NZ = Cash Flow Positive Investment Properties in New Zealand“Making mistakes is just another another tool for learning.”
I see no responses thus far Nobleone……perhaps if you were to breakdown the acronyms….Certainly I’m unsure what you’re on about with respect to a few?
wilrose[thumbsupanim]
With respect Wilrose…
If people replying to my post do not understand the three simple acronyms of PPOR, LOC and CF+ IP’s in NZ then I seriously doubt they can assist me…
Cheers, Nobleone [lmao]
“Making mistakes is just another another tool for learning.”
aha Nobleone…..(interesting nom de plume!!) Fair comment ( up to a point)…………….but isn’t the forum going to function best where whilst you seek help and ideas, you offer it in return to those less (or differently) experienced/educated than yourself? For those who read your post, it is necessary that they clearly understand your issues if they are going to understand the replies and responses. Of course, you are free to do as you see fit.
With greater understanding of your situation, for what it’s worth, it would seem to me that you have far too much debt, way too little equity, and too little income at the present point in time. Just because the bank has provided this facility doesn’t mean that you have to apply it……..you could simply consider it principle paid down on your home. (PPOR). Alternatively, perhaps you could seek ways to enhance your income. Failing that you may just need to allow time to have an effect on your equity, though admittedly this could be slowish in the present market.
with respect and kindest regards,
wilrose[thumbsupanim]
ps……as you may deduce, all is now crystal clear for me re the acronyms…………though possibly some out there may remain uncertain.
I agree with your point Wilrose… I have edited/added to my orginal post…
I also agree with your conclusion…
“it would seem to me that you have far too much debt, way too little equity, and too little income at the present point in time…”
Cheers, Nobleone [smiling]
“Making mistakes is just another another tool for learning.”
Originally posted by Nobleone:Here’s one for forumites to get their collective teeth into…
Aus PPOR valued at $375k – Owe $220K – $135k personal LOC plus $85K investment LOC…
Investment LOC currently has $48k sitting in it being slowly eaten away by monthly interest…
4 x CF+ IP’s in NZ owned through Aus company & trust set up – Cannot refinance further – Wont sell 1 or any – Not quiet enough CF+ to bring back any realistic cash each month…
Wanted to buy block of land in QLD for 135K – Build 4 bed 2 bath for another $135k – Sell for profit.
Biggest problem is serviceability for new construction loan – collective annual gross income $43K…
Finance broker has said “Best I can get on Low Doc Construction is 80% at 8.5%”
Doing the math this just does not work out… Soooooo question to forumites is there something I’m missing or can you suggest another way to invest the 48K sitting in investment LOC to create cash flow?
Stumped and feeling boxed in[grrr]… Cheers, Nobleone
Acronyms explained;
PPOR = Principal Place Of Residence
LOC = Line Of Credit
CF+ IP’s in NZ = Cash Flow Positive Investment Properties in New Zealand“Making mistakes is just another another tool for learning.”
Your broker must be looking at LaTrobe. Is this going to be an owner builder construction.
If you are getting a builder to do it, you could get a better rate with Macquarie, around 7.73% on a low doc or a no-doc. Depending on how long you have held your ABN for. St George may even be able to do it at a lower rate than this.
Terryw
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You just need a new broker and to make sure you do your homework on the new investment.
Best of luck! [specool]
You have probably moved on from this predicament by now, but I suggest get a money partner to overcome your finance limitations and accrue your cash resources as fast as possible.
Alternatively MyRate have some very competitive rates now. Standard at 7.19%. I just secured a LoDoc with no fees no LMI at 80% loan for 7.4%. Dont know what they do for construction.Cheers
Ian
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