hi Ishita

I also work at North Sydney, maybe we could have lunch together one day. I like to participate in other meeting too.

BTW, why are you putting ** in your email address? Is it to stop spammers getting your address?

Terryw
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Jay Cee

He sees capital growth as the main way to wealth. And with wraps we are giving that growth away.

Terryw
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$10 a week is not much to be paying. Just think about what would happen if that single mother stopped or got behind in her rent payments. Could you handle having to ring her up asking her why and being given some sob story? I’d probably give in and say ok next week would do.

Sometimes it is best to put some distance between you and the tenant.

Terryw
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What state are you in?

You can usually get this information from the land titles office for about $5 over the internet.

Terryw
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Grace

If the property has risen in value, you can apply for a release of security. This would remove any cross collateralisation and should only cost about $300 or so plus the cost of a valuation.

Terryw
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It does happen.

I currently have a client who has gone unconditional on a $915,000 purchase. AND he wants a low doc!

Terryw
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Hi Richmond

Basically what Michael says is (theoretically) correct, but he hasn’t taken into consideration closing costs. Assuming 5%, then the figure would come down to $1,320,000.

But you still must meet serviceability requirements, ie you must have the income to support the loan repayments.

Putting your figures into one of the bank calculators, I get a maximum borrowing capacity of $449,000 – without including ny potential rent from new purchases. Assuming you were to get a 5% rental yield this figure would jump to approx $685,000.

[I have assumed you get $370 pw rent for IP one, no children, no credit cards, and repayments for your current loans are $838/month and $1000 per month).

I understand why you don’t want to use the cash in your offset account. Mayabe you could, just get another split on that loan up to 80% LVR and use money from that as deposits, and keep the $55K in the offset. You could also increase the other loan up to 80% as well.

Down the track you can consider using low doc loans. These loans generally have a higher interest rate, but there is one low doc product at normal rates (6.07%) at 80% LVR. But you must be self employed for at least 3 years to qualify. This must be proved by an ABN registration. Therefore it may be wise to register for an ABN now in anticipation (costs nothing).

Don’t really know on the LMI angle. Some like to avoid it by paying bigger deposits, others like to put as little money into a deal as possible. I personally went for the later approach – I tried for as many 95% loans as I could get.

I think if you are going to pay LMI at some stage it would be better doing it sooner rather than later as the LMI crowd have stricter qualifying requirements, so if you wait till you do a few properties and then apply for a 95% loan, they may say someting like you are too rental reliant etc -Even tho you may still have the income to qualify for the loan.

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Michael

I have no experience (as a mortgage broker) with getting loans for clients with Hybrid Trusts soI don’t really know how banks will treat them. I have had client purchase property thru a discretionary trust and the bank always asks for a copy of the trust deed which they (supposedly) have their legal people scrutinise to make sure the trust is allowed to borrow (etc). (They probably don’t even look it!)

As you are going to use Dale, you can’t really go wrong. People must be getting finance approved using the trusts or they wouldn’t be using them.

Michael, it looks like you are becoming a bit of a trust expert!

Terryw
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Stuart

I can guess who you are talking about and agree with you on that one!

Terryw
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One more thing on hybrids. I have heard that banks do not like lending to Hybrid trusts, so it may be harder to get finance. Although I am a mortgage broker, I have no experience in this area. Could any other brokers out there please comment? Or anyone with a Hybrid Trust?

Terryw
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