Forum Replies Created
Thanks,
Something to consider, very good idea.
I will investigate …I don't see the point of doing such an exercise.
The equity wil be the difference between your amount owing ( the loan ) and the max LVR your bank is comfortable with on the current property value.
This top up/equity release is more likely to attract a LVR OF 90% maybe 95% .Then again I am not a broker and I suggest you check that out for yourself.
Personnaly with the credit policies being tough nowadays I would borrrow as much as possible and use spare cash as a buffer, but it is only me .
You can also shorten the cash flow shortage with payg variation to help you with the cost of holding if cash flow is an issue for you,provided the investment and your personal situation allow good tax benefits.
Again, please to your accountant in that regards.I don't know about today's deals with 100% finance , I thought those product were gone .
Which lender allow this???You might have to commit yourself to 3 years with this lender and an early termination fee could be costly….
As you are aware are you ready to get LMI for lending over 80 %. it could add a few $1000's on purchase cost.
I do not consider LMI a problem . I would go for it at all time but that's because I love borrowing and don't have any cash.
I hope those words get you thinking and please get you own independant professional advice.
Thank you jac and christian.
Your comments were very helpfull and I will pass them on to my friend.Congratulation!!!
I believe you are well set up to increase your asset base .
You are showing strong income (personal and rental) and you already have built up some equity over the years.
I have no doubt by the information you provided you would soon purchase your next house.I believe that by Increasing your Cash flow ( I.O.Loan/depreciation schedule and Payg variation) it would help growth your wealth and your relationship with a good broker.
You might want to consider borrowing over than 80%, I don't personally mind paying LMI if I can get the fund I want.
Your LMI rate can quickly be "paid back" by entering a better suburb or better investment deal.And also Take the step to look at structures before purchasing( trusts), if One of you is earning a fair bit less than the other then you can maximise some sweet tax benefits.
Again, get the knowledge,read,google and surround yourself by professionals and like minded people .
Good luck
Well,
I am not an expert but I have my own opinion and will try to help you answer some questions…
Balance transfer will work for the all balance of the credit card(S) you want to transfer, no matter what was the initial purpose ( purchases/cash advances).
I have used that a lot to help me out in emergencies ( urgent reno or even investment purchase).
My broker doesn't like it at all when I call in for debt consolidation later on as my borrowing capacity gets affected.
I believe it cuts your borrowing capacity by $ 25000 for every $ 5000 C.C Credit limit.( Don't quote me on this but check it out)You have to remember NOT to use the new C.C even if you have some redraw available because then your minimum repayment will jump up the roof as you will be charged high interest on the purchase or cash advance .
An extra repayment won't help as all repayments will go towards the balance transfer FIRST before knocking down any purchase/cash advance .
Balance transfer used well is good to reduce your debts and can increase your cash flow .
I used it a few times speculating on Capital growth I'll create through reno and then would consolidate at the end of the 6 months term.That is because the Banks would say no initially.
It is a risky business and wouldn't advise anyone to do the same, it worked for me but everyone circonstances are different.
I don't believe there is any fees for balanve transfer .
You pay for the Credit card annual fee + rates.
The minimum repayment is usually around 2.5 % of the balanceI hope that helped.
It is
Hi Jess,
I have 3 properties with 3 different Lenders, and I like it that way.
The reason being is that I like the flexibility and hate getting a No for an answer.Working with 3 or more different Lenders allow me not to lock myself into only One Credit policy.
The latest exemple :out of my 3 Lenders one only would do business with me because I only have 3 months in a new job .
The other 2 would wait for me to be in my new job for 12 months( a long time for a keen investor).Depending on how aggresive you want to be or even a one of opportunity migh require a higher LVR than 80%, sometime 95%.All Lenders set their own LVR and again I like flexibility/ choice.
Also In a downturn, your portfolio is not as vulnerable for business if you spread with different lenders.
CC offers some advantages( Tax benefits) I believe that suits investors that are more conservative( LVR under 80%) or have a good size portfolio with already a few Lenders .
This is only my opinion and I hope it will help you make the right decision that suits you.Hi Jess,
I have 3 properties with 3 different Lenders, and I like it that way.
The reason being is that I like the flexibility and hate getting a No for an answer.Working with 3 or more different Lenders allow me not to lock myself into only One Credit policy.
The latest exemple :out of my 3 Lenders one only would do business with me because I only have 3 months in a new job .
The other 2 would wait for me to be in my new job for 12 months( a long time for a keen investor).Depending on how aggresive you want to be or even a one of opportunity migh require a higher LVR than 80%, sometime 95%.All Lenders set their own LVR and again I like flexibility/ choice.
Also In a downturn, your portfolio is not as vulnerable for business if you spread with different lenders.
CC offers some advantages( Tax benefits) I believe that suits investors that are more conservative( LVR under 80%) or have a good size portfolio with already a few Lenders .
This is only my opinion and I hope it will help you make the right decision that suits you.Thank you for the tips .
I just only looked at their website and they seem to deliver all I am looking for in an accountant to service my needs.
I will give them a call this week
Thank you again , I hope to give you the change some days..
Thank you for the advice.
One thing that amazes me when I do my tax return and ask The acountant about Asset protection( still looking for a good one by the way ) is that all of them have told me that trust or no trust, if there is trouble my way, the assets won't be protected.
I still believe it is the way to go after reading a few books on the topic and appreciate you motivating me to take this step in the futur.
Does anyone know of a good accountant in North Brisbane or anywhere close really ( I don't mind the drive for top service)with knowledge on asset protection and double tax agreement , being French.
Qlds007 wrote:Certainly would never bring all loans under a Global Line of Credit which means you would be cross collateralising the securities. This is a Destiny Financial Solutions recommendations and is surrounded with issues for clients wishing to build a decent portfolio.Keep the loans separate and you wont be hit by a single lenders serviceability wall.
Thank you for your words of wisdom .
I believe that in the first option the added tax break in cross collateralising using the capitalised interests benefits is not worth it for me as I plan to stay aggressive with investments.
Maybe at a later stage ,when my PP will have a lot of outstanding debts and I decide to be more conservative.
As to where I got the idea .
I didn't get it from DESTINY ( which I met and disliked the concept at the time, 2 years ago ) but Canterbury Property Services and Weatherford Financial .
All the best and again thank you
