Hate to say we are seeing real issues with valuations on OTP properties which are coming in at a lot less than purchase price.

Good luck with the sale.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of your API interview.

Hi Newstart

Firstly welcome to the forum and I hope you enjoy your time with us.

Age is certainly no barrier to borrowing as long as we can show that you can support the repayments once you have retired.

Actually did a loan for forum member last month in a very similar position to yourself.

Going to need a deposit and sufficient funds to cover your purchase costs but assuming your income is regular no reason why you cant get on the property band wagon.

Feel free to ask any questions if you feel we can help further.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Hi Newbie

Firstly welcome to the forum and I hope you enjoy your time with us.

I will assume the reason why your funds are in the offset account linked to your current investment property rather than your PPOR are they are family funds. Certainly would be of more benefit to you if you could switch these funds to your PPOR offset account.

In regards to the new OTP acquisition you might find selling the property prior to settlement harder than you think.
The other concern might be the valuation of the OTP property as we are finding more and more in Melbourne not coming upto purchase price.

I would probably make sure you have access to sufficient funds to complete the purchase in case this happens as trying to extend past settlement date may incur interest penalties.

In regards to moving forward ensure you structure loans correctly to avoid issues down the track.

In the current lending environment we are seeing more and more clients frustrated in their current lender as they want to expand their portfolios but restrictive lending practices limits this.

The other consideration would be Land Tax. You might want to look at investing interstate especially if you are looking for cash flow.

Feel free to shoot me an email and I can send you a copy of the API interview i did on how i built my portfolio.
Might give you some ideas on varying cash flow concepts.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API Interview.

Hi again mddedf

I have to say anyone who told you to offer up your PPOR as collateral in it’s entirety has only their interest at heart and not yours and is certainly not the way we would recommend you structured the acquisition.

Usually it is a matter of working backwards in a situation like this.

Let us assume the intended purchase price of the new property is 400K.
You would look to secure a loan of 80% against this on a standalone basis only.

This leaves a shortfall of 80K in regards to the purchase price and maybe a further 20K to cover your acquisition costs etc – Total 100K.

You would set up an equity loan secured behind your PPOR for the $100K and use these funds to bridge the purchase price.

Both the interest on the 100K secured against your PPOR & the 320K secured against the Investment property itself are Tax deductible.

Course doing this means a little bit of forward planning and we would normally start with the PPOR restructure.

Now in regards to the variables in the main these will include the likely rent you will receive on the new property (I have assumed a Gross return of 5%) and the period you have been in Casual employment (I know you mentioned you have held similar positions to your current employment but was unsure as to whether you were also Casual).

Either way feel free to give us a yell (neither of us bite) or shoot us an email and we can provide you with a more accurate assessment off forum.

Hope this helps.

Cheers

Yours in Finance
0-40 properties in a decade. Email me for a copy of my API interview.

Firstly welcome to the forum and I hope your experiences here are better than on Sommersoft.

Whilst Jacqui has raised some reasons why Mortgage Brokers don’t respond it i think it is common courtesy to respond to a client even if it is to say “sorry i don’t believe we can help you further”.

We try between us to answer every email / phone call within an acceptable time frame.

There are a couple of variables which will determine whether your can service such a loan but certainly from the basic numbers i do not believe we are too far away.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Hi Robert

Hard to give you a definite answer without more information.

Under the NCCP legislation lenders are required to ensure you can service your current & future borrowings however there are a number of exceptions.

Nodoc lending is still possible in certain circumstances although comes with a higher rate etc.

Often whilst you might think you will not service there are often ways around this by taking a variety of income into consideration.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Charlie work on 80% of the market valuation less the current mortgage and that should be the amount they can access.

Course you being a Broker should be able to make the recommendation to them as to the most appropriate lender as of course we don’t have all the facts in regards to their requirements.

Cheers

Yours in Finance
0-40 properties in a decade. Email me for a copy of my API interview.

RP, i think you will be pushing things to get a 6% rental return in the current climate especially in Brisbane

We are however certainly seeing an increased demand for our Buyers Agency services from forum members and have sourced some excellent properties over the last few months.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview

Many lenders and indeed Brokers elect not to keep the loans separate as it harder to move away if they are crossed.

Whether it is right for the client i have seen many Brokers encourage it to capitalise on the commission and ongoing trail.

Suggest you avoid it at all costs.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Firstly DCT i am very impressed that you are interested in property at such a young age.

I was 18 before i had my first property under contract and guess never looked back even when i moved to Oz.

In the UK i would probably suggest you join http://www.propertytribes.com as it is an active forum with plenty of property members and totally free.

Good luck and keep us informed of your progress.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.