Hi RL – No drama.  IT is not really a problem until you want to buy more than one or two properties, which of course most people looking at investing in property do. Please excuse me if I go over what you may already know in the following, but it may help others. The problem is in the 'servicability' of the loan, or your ability in the mind of the lender to meet the loan repayments. Essentially you are assessed on your income, which includes rental income (usually counted as 80% of actual rent recieved, although some banks (CBA) only assess it at 70%) less cost of living and other liabilities such as personal loans, card limits etc. What happens though, is with the amount of money you wish to borrow for the proeperty, the proposed loan is 'aassessed' at their current interest rate, plus a plug or loading of one to two percent (depending on lender) on top of that amount. IE. Interest rate is 8.07%, you are assessed as if the loan WOULD be 9.57%, and the repayment amouont is calculated as principal and interest, even if you are only paying interst only on the loan.
So you can see, when you go into your bank for loan number two (and so on) lets say you have an interest only loan with them already for $200,000, at 7.47 % interest rate, paying interest only, they will count this in their assessment AS IF you were paying principal and interest on 9.57% !!!! You can appreciate, unless someone is buying property that the rent is significantly more than loan payments, you 'run out of borrowing power' quick smart. This is one of the reasons many people then approach another lender, or the serivces of a broker. It is a strange set up really, as the 'new' lender will either use your current repayments only with the other lender, or a 'formula' which is still less than what 'your' bank would have assessed you on.
So……what I was referring to in my other post, is that Rams do not do this – as long as your loans are kept seperate (not shared security or cross secured) they see it as totally different, and when you approach them for your next loan, they only count the actuall repayments you are making (even if interest only) on your previous loan. A lot fairer on the client, and the reason why many property investors (and self employed as a sidepoint) choose a lender like this.
Excuse the long winded explanation. But many likely are not aware of this, and I was caught out with the ANZ with this exact thing a while back – and they are inflexible. As many people feel a 'loyalty' to their bank, this is what often prevents them going elsewhere, and of course the bank won't suggest that you do….they simply say 'we're sorry, but you can't afford any more property, unless you earn more' and hold the door open for you on the way out.
But as you alrready are with Rams this won't be an issue for you RL with any 'loading up' of your exisiting loan liabilities.
All the best with your 'next one' redleaves – and if you need anything else clarrified, don't hesitate to ask.
 

They do sound good don't they. ?  If you know what you want, (ie for a REFI, rather than a new home purchase) especially as far as structuring your loan goes, and you don't need a branch to walk into or feel the need to indirectly pay a grand or two to a broker to find you a more expensive loan it may be for you……
Check the exit fees etc if any, (although many people fuss about these as if they are going to sell houses every year or two and change loans around every few months….) and any conditions that may be associated with the LOC (such as 'reviews' if not used for a time period etc).  See their Lo-doc rate? No wonder the banks report a gazillion dollars net profit each year.
All the best.

How about REAL ESTATE QUEEN? Sorry. Seriously , if you are having trouble registering the name you wanted to (with your surname?) and as you mentioned you are not suburb or locality specific, you can often appeal to the notice when you register a business name, give a good reason (as such) and it will possibly get the rubber stamp then. I remember many years ago going thought that, and they simply said' Oh, OK sent us a fax with that on it' and we'll let you register that business name.
If still 'no go', perhaps you could incoporate the words 'integrity' 'Complete' 'services' or 'group'.  What about INTEGRAL PROPERTY SERVICES or COMPLETE PROPERTY MANAGMENT.  ? Maybe toss in the word 'Penninsula' (spelt correctly)  All the best. !!  (Let me know if you need my PO Box for the prize )

I take my hat off to Fann (to reveal my shiny dome    ) great job. I think we may have still missed the point though. If someone wanted to buy Fanns house that is now worth $600k and get only $500 per week rent for that outlay, it hardly fits the eleven second solution as it did when Fann grabbed hold of it……..Of course, for the more creative and time or money rich there are locations and opportunities around to make the most of, and 'create' the solution, rather than 'buy 'it…..but what happens is the first book or two many read that are starting out (such as Steve's first two….which were excellent) are full of 'bought' eleven second solution-type-properties, which as I have previously stated elswhere, simply are not readily available in most areas with any significant population any more. Always enjoy reading and hearing about many investors who have taken the property development route and seen the 'fruits of their labour' (including many on this forum) in order to make the returns they do.

Hi Linda. Just thought I would mention re the Rams "investor loan' you mentioned, there is currently a special offer on that one (till end of July at this point) where you can make additional repayments on loans approved before then – makes it a really competitive loan……. I would strongly suggest seeing a Rams branch direct over a broker – I realise everyone 'has a story to tell' but you have much more control dealing without 'the middleman' if you have access to a branch in your area, and often problems with lenders can be attributed to lack of communication, and people making claims or promises they cannot keep, or are not authorised to make.
All the best.

His …..

Hi Diclem – You are correct. The problem is a lot of people mash personal and investment/income generating purposes all together, redraw willy nilly, and then it is one big mess, especially if they try and claim the lot as 'deductable' interest still. As long as you can show you used the money for the deposits/investment it is fine, and you have made that easy by using sub or split accounts.  Even if you use an Line of credit on your PPOR you still would need to split/seperate it as you have. Good idea to utilise different lenders and keep the loans as 'stand alone' too…..

All the best with your journey…..

Do you think we could pressure nab into giving us a better deal?  I'd rather stay with nab because we have a long history with nab and a business banking manager there who is very helpful.

Hi Sara. I think this is the main drama – if you can get a better deal or one you are comfortable with from a/your bank great, but history gets forgotten and business banking managers change, and thus (excuse the phrase) sentimentality should play no part in your decision if it takes the place of business sense. If your lender had a vested interest in his business I could appreciate that, but many business/relationship/whatever bankers get moved, replaced, retrenched and plain leave every week in the 'big4' banks, and while a good one can make it easier for you, remember they can only lend within the banks criteria anyway. If you plan on doing a bit of buying and quick turnover selling, you should consider using a line of credit secured against your home, rather than the hassle of getting a loan, and then the chance of exit  fees and other penalties when you payout the loans early everytime you on sell one.

You are in a nice position equity wise, so enjoy the experience not just of getting the loan that suits you, but progressing further with your property. Let us know how you go.

Hi Semetha & welcome to the forum. Unfortunatley there is no 'magic' method, and despite what many profess as their 'investing skills', there are a lot of people that have 'got rich' in equity by accident the last few years. Sadly, there are many who have 'gone backwards' too, as a result of bad decsions, luck, or both. There appear to be a select few investors that have taken on an amount of risk and shown drive that many of us could not relate to (wish I could say I was one!) and are now really starting to see the 'fruits of their labours'.
COuld I suggest, perhaps getting your hands on some additional books to read, and I think you could do a lot worse than Margaret Lomas books – all very 'solid' and practical. If you have your own property, you will be able to use this to 'bounce off', but if not, you will have to do the save for a deposit thing – and hopefully be creative along the way. For someone that has never owned property, utilising the first home owners grant to wisely buy a place for yourself at the right price, improve it where you can, and then later on sell for tax free gain, or if possible use to access the equity from to borrow for your next property/ies is a great way to do things. Anyway, all the best – and have a good look (with a grain of salt or two) through the forum at some of the old topics/comments and I'm sure you'll get some ideas.

A hot water service failing is considered a emergency repair. I would think the issue is more with your PM – they should have got a second quote if it seemed out of the ordinary. You should find on your agreement an amount after which they have to contact you for consultation – usually around $1000 but you would need to check yours. (you can decrease or increase this amount)As for the bill-maybe no one else could do it same day? There are some slack tradeys about……again though, if they cannot contact you, or if they did and you procrastinated and then a hws failed, this is an urgent replacement that you may still find overrides any spending limit – you would have to check. I casn appreciate this is an unwanted extra capital expesne though that's for sure. All the best.