Well, instead of just saying it can’t be done (or, sorry, that the ATO would be less than impressed by it), maybe you could tell me why? [biggrin]

I am new to all this and very eager to learn.

pasandbec

well, that is what I learnt off this board, with Monolopy’s ( I think?) help.

pasandbec

Hi guys,

Thanks for all the replies/suggestions/help.
We have decided to let this one go for now and concentrate on renovating our PPOR instead. Then once that’s done we’ll look at getting a 2nd IP. Hopefully our property will have gained in value and it will be alot easier to obtain finance.

High flyer – our current IP (yes, it used to be my…[Read more]

TMA,

Here’s a scenario for you, do you’d think it’d work??

Keep in mind:
~Current IP loan amount $185,000 value $285,000
~Current PPOR loan $225,000 value $215,000
~New IP purchase price $64,000

What if I took current IP loan up to 80%. Currently it’s at 64%. This would free up $63,000 in equity.

With this $63,000….
– make current PPOR loan…[Read more]

TMA,

Thanks for all your help.

I asked this question before but it didn’t get answered so I’ll ask it again….

Is un-cross collaterising two loans/properties hard to do??? Because my mortgage broker did not present it to me as an option.

Any idea whether Bankwest will lend more than 80% (with LMI being paid)??

p.s. why do you hate Bankwest?

Hi Jason,

I have been PM my rental property for almost 2 years now. In that time I have had 2 tenants. My tenants have been great and I have found PM to be pretty straight forward and simple, and enjoyable! However, I have not had any dramas with my tenants so I haven’t had anything to worry about really. But I think, so long as you read up on…[Read more]

thanks for your post TMA and sorry if I have been missing vital details along the way [blush2] i am still a ‘newbie’ when it comes to property investing.

what you say actually makes sense to me!!
it seems do-able!??

If we increase current IP loan to 80% that will free up $63,000. We could then make a 20% deposit on new IP and borrow the rest…[Read more]

Originally posted by TMA:
Besides your properties apparntly being cross-collateralised, which you still have not confirmed or denied, you might be facing serviceability issues.

If your properties are NOT cross collaterilsed, it is a simple matter of increasing the loan on your first IP to 80% and also borrowing 80% against the new property. This…[Read more]

I do not want to let this one go…..
[cigar]

Can’t Bankwest just lend us the money for the 2nd IP plus extra (for renos) and we pay just a few thousand in LMI???

For example:

~new IP purchase price $64,000
~costs $5,000

~extra money for renos to new IP and existing PPOR $30,000

~existing PPOR loan $225,000

~existing IP loan $185,000

equals…[Read more]

p.s. I also have photos we personally took of the place.

How dissapointing! [bawl]

I wonder if we will have trouble even borrowing money for our PPOR renovations then!!!!

Well, if anyone if after a property deal and are prepared to put a fair bit of elbow grease into renovating the place, then let me know, coz it appears we won’t be able to buy it. [cry]

pasandbec

sorry to be annoying, with so many questions, but is “un cross securitising” two loans hard to do??

i’m just wondering why my mortgage broker didn’t think of (and suggest it) himself?

he kept saying to me “it’s the PPOR that’s the problem, with the value coming in lower than expected”….”Bankwest said they couldn’t accept it as security”

So…[Read more]

I had told my mortgage broker that we don’t mind paying LMI….. soI am totally confused. I think I will need him to clarify the situation to me again, as I’m sure there are more options than just going with another bank.

Failing that, I may have to give you a call Steve.

pasandbec

hi hellman,

on the contrary…we are using a mortgage broker and the gentleman handling the deal for us is apparantly very good. he gave us only one other option, to refinance the deal with another bank using a 10% deposit plus stamp duty, etc.

what i don’t understand is we have $100,000 in equity. why isn’t this enough to borrow 100% plus costs…[Read more]

I should have also mentioned that we want to borrow 100% plus costs plus extra $$ to do renovations on our PPOR and the (new) IP…..

Partner earns $55,000 pa, I earn $34,000

No credit cards or major debt (apart from the properties)

KS,

I cracked up when I read your post! Especially the taxidermist part and the action of ‘squirting’ the boss like he’s a weed, as you walk out the door! hahaha.

Thanks, you put a smile on my otherwise depressed/stressed dial.

pasandbec

And you want to get a 2nd job. Tut tut tut
*shakes her head*

LOL. I know. And stress myself out to the max, right? hehe.

He is just an arsehole, unfortunately.

He gets very ‘high n mighty’ and gets his back up whenever he even remotely starts to look wrong.

This is one example for you, today he took something from my cabinet/drawer without asking or telling me. When I went looking for it I found out off the boss that he took it, so I approached him and said “I’d…[Read more]

I guess because I’ve never been in this situation before, so am unsure what to do and scared of the repurcussions (being sacked or something). I am not part of a union, I don’t think the Manager would do anything about it (even with a formal complaint), plus I just want out of that job now anyway and am looking for employment elsewhere.

hmackay,

what an encouraging post! thanks for your support. still not sure about the 2nd job/tax issue. am trying to think of other possible sources of income but it is difficult.

congrats on your success, i wish you all the best.

pasandbec