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Yes I should make that clear. Actually those figures will take me to 100% of of the value of the property.
The potential sales values are
Property 1 $315k
Property 2 $380k
Property 3 $370kBy the way Property 2 is my PPOR
I'm one of those 20 somethings and I have no intention to retire ever. Not sure if many people fell the same (definitely a minority, if there are others) but I agree with House Call's statement that people want to be financially independant and are confusing the terms. When I'm 40 I would like to be completely financially independant but I'll still work a job (p/t or f/t) or run a business or something that is actively making money. In fact I would like that now.
I'm also in the same situation but I only have 3 properties and two banks. I finding it hard to believe it is just the structure. I think I'm on a relatively low income and that is my main problem. I am going to attempt to refinance but would like to hear any suggestions or comments on my situation.
My rough details are:
Bank 1 Loan 1 – 250k (equity maybe 65k)
Bank 1 Loan 2 – 330k (equity maybe 50k)
Bank 2 Loan 3 – 330k (equity maybe 40k)*equity based on real estate sales and I know will not be bank valuations
Income 1 – 45k
Income 2 – 65k
Rent 1 – 15k
Rent 2 – 15kI've been told by both banks that I won't be able to service the loans, do you guys agree or perhaps some magic can be pulled out from a hat?
Gotta say thanks to all whom have posted on this topic, and especially to Banker who started it. I'm trying to sum up what I've read from this thread and others on PI.com to see if I've got this right.
At the extreme of one loan, one bank and however many properties, the main positive of CC seems to be a simplification of paperwork and dealings with your bank therefore apparently allowing simplier and quicker response to obtaining finance for a venture.
The main negative of CC seem to be less control over your properties due to the bank having complete access to the properties and your finances. Which means they can dictate what to sell and when to sell should something go wrong.
Both the positive and the negative is based on their corresponding positive and negative situations, i.e. the positive is positive in a positive situation while the negative is negative in a negative situation. (Hopefully that has made sense) Therefore of course the arguments would make completely sense in their respective situations, would this be correct?
From the discussion provided, Banker would you be able to confirm that CC is only preferable in a limited number of situations and when only when LVR is at a good rate?
Also from the opposite side (as there is a great deal more of you guys) when we no longer can pay a loan and the bank is looking for more security the benefit of not CC is just to buy time, would that be correct?
