Lenders that are governed by APRA have been changing their investment servicing / general lending policies for some time now.

How do you combat it ?

Use a lender that doesn’t service in the same manner.

We have seen a significant increase in the inquiry level from forum clients wanting to see how they can develop their property portfolios in light of the tightening of servicing and loan planning has become more important than ever before.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

Kylie

Not sure how much you are offering them but remember most lenders wont take a gifted deposit so the lvr they can obtain might be quite low i.e 80-90%. Other issue is that the buyers lender doesn’t value the property at your sale price given there is no real estate agent involved.

Again lenders only advance against purchase price or valuation whichever is the lower.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

Totally agree Apolo.

We see forum clients every day of the week who have gone off randomly buying in an area or region without every understanding their end goal.

They think they know why or where they want to buy but then suddenly realise that perhaps the didn’t need to spend that such or indeed purchased for capital growth without any consideration for cash flow and now find they cannot service further borrowings.

A property investment plan has several phases from acquisition to accumulation to draw down etc and thrse have too be carefully thought thru to ensure they meet your needs along the way.

Buying and selling is not cheap so you want to try and get it right.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

How deep are your pockets and what sort of multiple are you willing to pay.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

I can think of one other but yep CBA is the place for CE.

Cheers

Yours in Finance
0-40 Properties in a decade. Ask me how.

Hi Bla

This day and age your broker can be everywhere.
Currently I am in the UK and although I have seen a few of my forum clients I am combining business with pleasure.

My partner Jacqui is in Melbourne so feel free to give her a call if you need to talk to someone on the spot.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

Hi Mddedf

Yes you can redraw the funds but the interest will not be Tax deductible.

Next issue is the total loan can become contaminated so if in doubt go Interest only with offset.

Some lenders charge a higher rate for an interest only loan even on a PPOR so your Broker should be able to dig around and find something for you that should suit.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

Hi Cattleys

No one is saying not to post an opinion but when you start to quote incorrect Tax Rates, land Tax thresholds and stamp duty in Qlds share transfers it becomes dangerous to new members.

It is not a matter of arguing the forum is like a BBQ picnic this is a forum where views and opinions are often relied on and could lead to potential danger for investors.

When you have been involved in the forum for the 14 odd years Terry and myself have you have seen a lot including the pain felt by others in poor advice.

Cheers

Yours in Finance
0-40 properties in s decade. Ask me how.

Yes a lot has changed for the better although still pockets you would never touch.

We buy a lot of property in the area for our forum clients but thankfully due to our agent contacts now the areas to leave well alone.

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.

Hi Sal

Sure Steve Hodgkinson at Gold Business Group on he Gold Coast.

They act for hundreds of forum clients of mine and are excellent.

Steve has acted for me for 20 years,

Tell him I sent you if you decide to go with them as that way they will look after you,

Steve is a forum member but doesn’t get chance to post that often as we keep him busy,

Cheers

Yours in Finance
0-40 properties in a decade. Ask me how.