Do banks keep lending for +CF properties?

Viewing 8 posts - 1 through 8 (of 8 total)

Choubi
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@choubi
Join Date: 2011
Post Count: 13
February 20, 2011 - 2:01 am
Hi
Will the banks keep lending you 100% to purchase +CF properties if you have enough equity for the deposit (you don't use any of your cash) and all your properties in your portfolio are +CF?
Any comments are appreciated. Maybe one of you guys is doing it?
Cheers
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
February 20, 2011 - 3:56 am
Yes they would, But you must have a LOT of equity to suport this sort of lifestyle and investment. I currently have 7-8 clients using this to build and buy all their properties.
You would be looking more at the BIG 4 for this sort of strategy…,the small banks tends to get scared espeiclly when you have over 1M.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Same Banks. Better Rates. Served With a Passion.
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
February 20, 2011 - 3:57 am
ps. ANZ breakfree loan product is not bad for this sort of strategy.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
god_of_money
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@god_of_money
Join Date: 2008
Post Count: 970
February 20, 2011 - 4:40 am
I like ANZ breakfree… but their interest is not as competitive (6.94%) vs. NAB choice package (6.77%)
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
February 20, 2011 - 4:54 am
In my opinion good product but a bit conservative when it comes to serviceability model.
It was strategy i used with Anz succesfully in the mid 90's and acquired our 40 properties.
Now we have almost paid down the entire debt so product is not so important but certainly has a place.
As Michael mentioned over $1M they start to quicker a little and always good to spread your risk.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
god_of_money
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@god_of_money
Join Date: 2008
Post Count: 970
February 20, 2011 - 5:04 am
Richard
"…over $1M they start to quicker a little "… do you mean ANZ or small lender..
But you can get better rates with > 1million
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
February 20, 2011 - 5:30 am
GOM with apologies that should have read "Quiver".
I assure you they dont get quicker over $1M.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
February 20, 2011 - 8:36 am
I thought that’d be more the case Richard. Banks would also be looking to spread their risk/exposure.