Forum Replies Created
You need to get expert advice elsewhere Majic – I'd give Terry a call.
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]
Yeah looks fine.
Just make sure that the banker doesn't cross up both properties (they tend to do this without the borrower being aware).
Another thing to touch on is that both properties are going to be at high LVRs. It looks like you'll be taking the PPOR up to 90% and the IP purchase will be around 90% or higher. Not all banks will be comfortable with this level of exposure – sometimes we use two different lenders to get around this. One for the equity release and another for the IP purchase.
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]
Hi Paul
Your plan sounds about right.
The end result is three loans.
PPOR
Loan 1: Your current PPOR loan
Loan 2: Equity release against PPOR to cover deposit/costs on IP (can be an IO loan or LOC)
IP
Loan 3: Remaining balance for IP
As mentioned above, make sure they take into account the LMI you've already paid on your PPOR when carrying out the equity release – this should save you heaps.
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]
Hi mattliasiian
Let's take it back a step.
Are you planning on renting this place out at some point and purchasing another PPOR?
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]
Going direct can also be luck of the draw in terms of the quality of the banker you get.
I get nervous going to my local bank branch for anything because some of the staff are hopelessly incompetent (sounds harsh but it's the truth). I tried switching an offset account from one loan to another and it was an extremely painful process.
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]
tommytucker wrote:Hi AllI'd like to hear from those people who have made it out of the rat race how long it took them to make a reasonable portfolio and then make good their escape. This escape may have been to a self-employed business or to a villa in Tahiti.
Tom.
Hiya Tommy
The majority of the stories in API and YIP magazines features these articles. Some are truly inspiring, some you take with a grain of salt. Either way, I'm sure you'll find plenty of interesting reads.
There's also a collection of interviews on somersoft from regular posters who have done quite well out of investing. Might be worth checking out some of those too.
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]
I'm sure Terry W will be onto this in a flash.
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]
babyflynn81 wrote:Wow – learnt something new today!Sounds like a few investors do the 90% +15% personal loan scenario. I'll consider that for the next one.
Thanks Richard.
Another option that works for some people is a gifted deposit – a gifted deposit that covers off 10% plus costs will usually get the deal done on a 90% lend with the right lender.
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]
Chickenhawk6451 wrote:Qlds007 wrote:Option 3 Take out a 105% standalone loan with a 15% personal loan and 90% traditional loan.Thanks for the help so far everyone, I'm keeping all options open. Wouldn't the above option not be possible because when you apply for a home loan you need to declare all debts? So if you can't use a loan to fund another loan? I thought that was illegal?
Cheers
Alex
Nothing illegal about it. You just declare where the deposit/costs are coming from.
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]
Property management fees can be quite high.
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]
Hi and welcome aboard.
Student accommodation rarely makes for a good investment – especially if you're searching for capital growth. On the surface, the rental yields may appear strong but high holding costs can quickly erode those returns.
Banks aren't a huge fan of them either – you'll require a large deposit to get the deal done.
All in all, they're not my favorite IP type – but some people do buy them.
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]
I have one excel spreadsheet set up – it has a separate page for each IP.
I capture the income and expenses of each property once a month. I keep all receipts in an envelope for each FY.
If I had more time, I'd scan and electronically file all receipts/invoices.
I also have a hard copy file for each IP – which holds all paper correspondence. Again, if I had more time this would all be electronically captured.
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]
s0805 wrote:Richard/Jamie, that's good to hear that ANZ does allow the loans to be paid back on drawdown. Just so i
understand it right u mean using redraw…..so drawdown the IO loan and park all the money on redraw on the
settlement….and use it from redraw when you are ready…is that right? that means i don't need offset accounts then…
Yep that's right.
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]
Yep it's possible – just ensure that the bank isn't crossing up your loans. Also, is there a chance that this property could become an IP down the track (your current PPOR I'm talking about)?
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]
That year went way too fast. Looking forward to getting back into the office this coming Monday.
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]
You could try Jeremy Fox who's in Tuggerah (not quite Newcastle) [email protected] 02 4353 3889
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]
Hi Junk
Are you considering turing the PPOR into an IP down the track? I couldn't find any reference to this.
In any case, IO for a PPOR can be a good option.
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]
engelorumora wrote:What is a "property sourcer"?Like a buyers agent?
Thanks
Yep pretty sure that's what he meant. I think there was a similar post about it.
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 Richard – there's no point in paying a premium for a LOC product, especially with ANZ, when an IO variable loan will end up having almost identical benefits. I think there might be a minimum redraw of $2k with ANZ (that's off the top of my head though) – but apart from that, it makes sense to save yourself a little on the rate and go IO. I don't think I've ever actually set up a LOC with ANZ for any clients. It's always been IO.
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]
I prefer old all the way. Especially old properties that can be cosmetically renovated for a quick equity gain. That's how I got started with investing and is a strategy I continue to employ.
I agree with the other guys about paying a premium for new – the same concept applies to almost all goods.
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]
