Great strategy @Corey! Thanks for giving us more options about Equity investment.

Cheers!

Floating around circa 70% at the moment – generally the leverage stays at this point as I debt recycle to leverage equity into property deposits/shares. So long as there is a reasonable enough ROI I’ll keep doing so.

It’s about achieving the desired outcome – borrowing more/as much as you can. The old trust ‘loophole’ is dead – but you can…[Read more]

@Corey Batt: Yup it works now, but I’m not sure how this relates to borrowing under a trust structure and going as guarantor. All this talks about is that you can increase your borrowing capacity by using different lenders. One of the graph is also confusing – says lender 1 $400,000 debt but the graph shows $800,000.

@Jaxon: Thanks for the valuable input. I’m going to learn more about Vendor Financing Strategy, and see if I can use this to access properties for Renovation to build up equity more quickly.

@Corey Batt: Are you still able to increase your borrowing capacity by structuring your portfolio this way? P.S. I can’t access that link you provided…[Read more]

Everyone asks it. Not only because this loophole (it really wasnt one, specific lenders had very specific policies permitting it under certain circumstances) has closed and there’s a standardisation of input of data through a third party channel for most institutions – it’s being asked and to not note it is mortgage fraud.

Lenders are digging…[Read more]

@Terryw: Thanks for the clarification. I just didn’t understand how an entity could borrow money without proving any source of income.

@Jaxon: My goal is to make +$500 positive cashflow per week, and I’m thinking maybe this could be achieved by finding 10 properties yield $50 positive cash flow per week. Maybe renovate and increase the rent? I’m…[Read more]

@Corey, lol try telling CBA about 3.5%+20% exchange……and that’s why they didn’t get our business. :)

Likewise you are right about St George not knowing what they want and no allowing us to increase our portfolio loan……and that’s why they don’t get our business either. :)

Westpac took forever to get approved and came back twice to make…[Read more]

And that’s the way fixed rates should be looked at – a risk mitigant. That is completely different to the OP’s question however which is based on rate differentials, which with the latest cut alone would have seen them worse off. Use fixed rates to manage risk, not gamble for the cheapest option.

@Corey, I agree on a 2 year fixed….but on a 5 year fixed…..sounds like cheap insurance to me. Basically allows an investor to sleep soundly at night for at least the next 4 years and then consider selling when the fixed term period runs out in 5 years from now rather than being in a situation where you are at the whim of the banks who can…[Read more]

Thanks guys, my preference is always going to be for 5 years and understand it may cost for that “comfort level” (I just don’t trust Australian bank variable rates….and the fat dividends that go with Australian bank shares).

I agree though @Corey the 0.7% difference on a $500k adds up at $3500pa however I think in 2019….just as rates start…[Read more]

@Corey, do you know if there are any rules within APRA that ownership says the percentages for risk etc have to be “amalgamated” eg it might make a lot of sense for them to continue to be two separate entities.

Thanks All, I was going with Werribee as that is the only area I know in Melbourne via a friend staying in Melbourne.
I am living in Sydney but it is all out of pocket as we all now…only areas I can think of looking at wthin 430k range are St. Marys, blacktown, penrith, that too just apartment not home……..

@corey thanks Corey, even I wat to…[Read more]

Just about all the lenders are having to review their living expenses calculations, so this style of calculation will most likely become the norm in the near future – so I doubt it’ll be a localised issue for NAB. They still maintain one of the higher borrowing policies for borrowers with existing debt with other lenders.

@Corey, thanks for the tip. Interesting thinking….wonder if it will cost NAB some profitability…..

BTW is it just me or are other people really missing the Thumbs Up/Thumbs Down feature :(

@Corey Its like they have a chip on their shoulder.

I prefer drivers cos they seem to be in it for the long run, which suits property investing.

@Corey Batt Its like they have a chip on their shoulder.

I prefer drivers cos they seem to be in it for the long run, which suits property investing.

@Corey, what are the current maximum interest rates that can be charged in Australia on overdue strata fees?

And I agree with you about getting in new strata managers……it seems like its the little things that determine the difference between getting ahead slow or faster……

@Corey, yep totally agree, when it comes to cashflow calculations I totally ignore capital growth until its realized.