This particular forum member had an investment loan with a 3rd party where his existing Bank was considering him jointly and severally liable for the entire debt however only taking into consideration 50% of the rental income.
Thankfully we have restructured the loan to a lender who considers 50% of the rent and 50% of the loan liability thus solving the problem.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.
Richard Taylor | Australia's leading private lender
I have to say the wording “is due for delivery soon” in your post makes me very nervous.
I am assuming from this the property is an off the plan new property ?
Firstly, I hope the property values upto the purchase price as more and more are not and secondly sounds to me with a rental guarantee this has been built into the price itself.
Do you have to rent the property thru an onsite manager who has purchased the management rights ?
If this is optional you may find renting it thru a local agent might be preferable.
The furniture will be Tax deductible so that is something but how regularly will you need to replace it.
Will your landlords insurance policy cover any damage to the contents ?
I think the first thing i would do is make sure your Bank or Broker order a valuation as soon as the unit has been completed as this could be the initial problem.
Then talk to a few independent property managers in the area and get a feel for what they say.
Broadbeach is a good area but starting to see more of an abundance of high rise OTP units and they are not valuing up.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.
Richard Taylor | Australia's leading private lender
Hate to say every application is lodged electronically these days so even in the event of a face to face get together your broker will go back and lodge your deal on line.
In the old days you would sit down with a client and do up an manual application and then run it round to the local Bank manager who would assess it. I remember sitting having coffee with a number of Banks in the mid 90’s looking over a clients deal and they would print the approval off and we would then drop it back to the client.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.
Richard Taylor | Australia's leading private lender
Hate to say doing anything in a hurry is usual a fatal long mistake.
Forget Liberty if you need anything done in a hurry as due to the volume of loans they have blown out on delivery time for assessment.
Seems to me like you haven’t really considered where you want to be in the future and that this might merely be a bad aid solution.
It sounds like settling the IP purchase is #1 priority to avoid being in default and then maybe getting things sorted.
In saying that still no reason why you can’t do both things at the same time subject to the settlement date.
With the equity you have in your current property i believe you could obtain a very competitive rate of interest as well structure your loans in a manner to help you move forward when you want to.
In the current climate often a matter of taking what you can get from a lender when you don’t necessarily need it as when you do you might find it is not available.
Plenty of options available from what i can see.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.
Richard Taylor | Australia's leading private lender