Hi all,
I am new to property investment as a whole. Just thought I would get the first post out the way and share my journey so far.In 2006 we bought a 2 bedroom unit on the gold coast paid 265k just valued at 360k owe 232k.
The last year 18 months I have been moving around for work and have been renting.
My plan is to keep renting and acquire IP's as quickly as possible.
I am currently in the process of applying for a loan to refinance to I/O and then get a pre approval so I can purchase.
I believe my servicability is fineI have already run into some challenges.
– When we moved from the PPOR a friend started renting out the unit from us. We contacted the energy provider and changed the account into the new person name. Paid it all up to date etc.
Anyway the loan application has revealed that my partner ( Her name on electricity account ) has now a default on her credit report of $268. We found out wednesday and paid it friday.
Recieved no letters / telephone calls etc from Jack Green ( They are now out of business )
I have contacted someone who specialises in dealing with this area and are waiting for their advice.
The lender has not declined the application as yet just required more info .
-When we first puchased we put both names on the Title so now they both have to be on the new loan.
I am hoping that it all goes through . If it doesnt I quess I will have to look at taking her name of the Title and loan ( I know I will be up for stamp duty , But not CGT as it was PPOR )
I have a Good Broker who I found on this forum dealing with it so Im sure one way or another we will achieve the goal.
Thanks everyone for the wealth of knowledge I have already learnt in my short time here.
Hey Rossco,
A similar thing happened to me when I moved from a previous rental property. Utilities were cancelled, paid up to date, and I gave them my forwarding address should there be any additional charges once the meter was read.
I didn’t receive any billing, but found out about 9 months later that I had a default on my credit rating.
I was able to have the default removed by phoning the utility company, explaining the situation, and then paying the debt. The first person I spoke to said they couldn’t do anything, but after speaking to a manager, and putting the blame firmly on their shoulders, where it belonged, I was able to have it removed. Only took about 2 business days to go through to Baycorp/Veda and all was good again
I’d strongly recommend you do the same thing, don’t want to have a default hanging around for the next 5 years.
Good Luck!
Elle
Thanks Elle,
We paid the $268 on Friday. Hopefully when I contact them Tuesday they can organise the removal of the default,
not sure how we will go as they are no longer trading.There should be some form of contact. If not, I’d contact Veda Advantage directly to explain the situation. It is likely they will just say they can’t do anything, but if you can’t get a hold of original company, is worth a shot at least. Someone @ Veda might actually be able to find you a contact.
Good Luck!
emej they will say they can do nothing.
We could apply to have it removed for Ross but costs around $1500-$2500 and takes about 6-8 weeks.
Richard Taylor | Australia's leading private lender
Ive heard someone where I live had a similar hassle. They paid out a phone contract, have a $140 default a year later when applying for a loan and would be charged $1500 to clear it. What a joke.
Im surprised at this sort of madness creeping into our lives, in some cases detering young couples from getting ahead.
DD
I'm not 100% sure how it works now, or with different lenders. Hopefully our more learned friends on this forum can help. When my wife and I applied for our first loan 5 years ago, only the principal borrowers credit history was checked…Not any additional borrowers. I only knew this cause a friend of mine used to work as a loans manager.
Burnie
Hate to say to you that is not the case now.
If the loan application is in Joint names then the credit history of both applicants would be checked.
Up until 8 years ago one opf the major lenders (who shall remain nameless) didnt used to do a credit search on any loan application. And NO it was not the CBA.
Richard Taylor | Australia's leading private lender
emej78 wrote:Hey Rossco, A similar thing happened to me when I moved from a previous rental property. Utilities were cancelled, paid up to date, and I gave them my forwarding address should there be any additional charges once the meter was read. I didn't receive any billing, but found out about 9 months later that I had a default on my credit rating. I was able to have the default removed by phoning the utility company, explaining the situation, and then paying the debt. The first person I spoke to said they couldn't do anything, but after speaking to a manager, and putting the blame firmly on their shoulders, where it belonged, I was able to have it removed. Only took about 2 business days to go through to Baycorp/Veda and all was good again I'd strongly recommend you do the same thing, don't want to have a default hanging around for the next 5 years. Good Luck! ElleIt's a good idea to do your own credit check before you seek finance/refinance. Defaults are inputted by people who make mistakes all the time e.g. adding an extra 0 to the default amount which could prevent refinance occurring. It pays to do your own due diligence about your credit record and not just leave it to your lender.
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I DIY manage with Rentwise.
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