We just had our PPOR valued by A*Z and they said we could set up a LOC of 160k provided serviceability is satisfactory. Servicebility is to an issue so I was wondering what would be the best way to utilise the LOc. I am more keen to do creative investment such as reno or development.
Would love to hear from more experienced investors on the forum what they would suggest?
Thanks in advance
Depends on your individual risk profile, investing strategy and serviceability.
What are you aiming to acheive out of property investing? Do you have some sort of plan in place?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Our serviceability is good. Our accountant says we can borrow another 750 K or so. We have our PPOR rented i.e. is negatively geared. Our IP about 25$ a week negatively geared if you include all expenses involved so we are now looking for a positively geared property to offset the negative gearing. Our goal is pick up 10 properties in 10 years . We want to eventually have a 2 mil in equity i.e. loan free so we can continue to have the same income on retirement (around 250k) to maintain the same standard of living.
Is your accountant able to provide credit advice?
Based on your goal, I'd look to spread that $160k over as many deposits as possible and probably consider 90% LVR loans early on.
Neutral/positive geared properties will help prevent you hitting a serviceability wall early on.
It's important that your finances are structured correctly from the start to end and that you choose the right lenders (and LMI providers) at the right time as you continue to accumulate properties.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Agree with Jamie unless your Accountant is Licensed he is unable to provide you with any credit advice.
Obtaining that sort if passive is certainly possible but will take time (Took us 8 years to get a bit more than that but times have changed) and structuring your finances correctly from day 1 is imperative.
Must admit with only 160k available going to take carefully planning and Anz would not necessarily a place to start as they have one of the poorest serviceabilty / lvr model in the market.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanx Jamie and Richard. My accountant is a chartered accountant and he himself invests a lot into property an developments.thank you for your valuable advice. Will definitely keep your advise in mind.
Hate to say neither of which giving him any legal qualification to provide you with ANY credit advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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