Are you sure no-one will touch you in Aus? Imperfect credit isn’t the end of the world – some lenders will still provide finance if your credit record isn’t perfect. There even some lenders who will provide finance for discharged bankrupts from day 1.

Not automatically, no. It certainly contributes towards your serviceability but doesn’t mean that if a property is CF+ automatically qualifies you for the next IP.

From memory, the last time I did some modelling as to what gross yield you need to start contributing towards serviceability it was ~9.5% so would need at least that yield and then some to start contributing to your serviceability with the bank.

There’s a lot more taken into consideration then the income you receive from your investment property as to if and how much the bank will lend you.

Hi Kerky, can’t really recommend any reading material sorry.

How I work it is define my end goal so, for argument’s sake, that might be an income of $100kp/a from investments – what will I need to get there? Through the power of compounding over the years what avg yield and CG will I need to get there? LVR, portfolio size?

This is only a very high level view but gives something to work towards with the other considerations.

After.

If you wish, make your offer subject to a building and pest inspection if it’s not already in the contract.

Only from the other side.

When I worked in lending for one of the banks I would often see people with these kinds of loans. They’d get stuck in a trap with them – not even living week to week but living one week in advance. Something would happen, they’d borrow the money with circa 30-40% interest rates and use their money to repay the loan but then leave themselves short and having to borrow money again digging themselves deeper each time.

They’d then go to the bank to get out of the hole they’re stuck in, but unfortunately more often than not, the bank was unable to assist for various reasons.

I’ve come to detest lenders and loans like these. They don’t do anyone any favours.

Sorry to hear about your situation – it’s a tricky one.

I also live in Trinity Park and have seen your property on and off the market for a little while. First up – any reason you picked an agent from Redlynch to sell the property? I’ve wondered this as I drive down Reed Rd what would motivate someone to chose an agent from Redlynch.

Being in a gated community can be a turn off for some people, there is the perceived security but from what I’ve heard from people living there, that can make them a target too. For me the main turn off was when I was looking to buy was the body corp.

The property itself is on a large block, but I wonder if there’s much demand for dual living? If I was shopping in the $800k price point I would be more drawn to a waterfront place in the Bluewater estate.

Have you received feedback from the agents as to why there hasn’t been much interest? With the place being empty it would be harder for someone to visualise living there, looking into staging the property may be an option? I see also there’s no open homes scheduled either. I think holding opens may assist as it will get people in the door and what their $800k would buy them.

As a whole, the market on the Northern Beaches is starting to really pick up with confidence rising and I think there will continue to be gains for the foreseeable future.

To echo Jacqui – I’d be concerned about having all lending and assets with one bank. Eggs and baskets come to mind.

In this particular scenario you are the one with the power with the substantial lending amount. In saying that though, I received an email from CBA this morning saying “We have also reduced pricing discounts for Investment Home Loans…..Discounts are still available for Owner Occupied lending”. Banks are generally more aggressive with pricing new to bank lending as opposed to existing lending unfortunately.

All you can do is ask. I wouldn’t be too concerned about damaging the relationship as they don’t seem to be. Present them with interest rates you would get if you were to move to another bank and ask for them to match and if they don’t threaten to leave. They may realise the complexity of your structures and may call your bluff though. If they do then it’s up to you on how to proceed.

As a guide, I negotiated 1.25% recently for a client who had over $1m lending and <80% LVR. But, this was before the change in pricing.

Ha, all good. I actually wrote this one first in response to your post then thought I may as well post it in the other forum that shall remain nameless ;)

Then I will be ditching my $5000/year policy (is this normal!!!?)

Yes and no…. When I first bought my PPOR here I was hard pressed finding insurance for under $10kp/a (in a red flood zone) and was almost a deal breaker. I was then able to get building and LL insurance with EBM first of all as was going to be IP and insurance was about $2.5kp/a. Ended up moving here instead and got insurance through RACQ for about $2,600.

Ha, let’s hope you don’t need to use that spare bed yourself!

Will do, attending an afternoon tea with the Aquis people tomorrow afternoon so hopefully have a bit more clarity on where that’s headed.

To add to Terry’s post too, which I forgot to put in mine is the lending of cash behind the scenes. I have one client at the moment who is looking into JV’s for small scale developments and one scenario that is being entertained is that the cash partner of the deal lends the money to the JV/serviceability partner and all lending in done in their name (ie trust) which makes it a bit less complicated.