Forum Replies Created
- TheFinanceShop wrote:Firstly why are they going for a 3 year fixed @ 5.85 when they can go with say St George for 5.59%? Secondly what is their long term strategy? They may be better off fixing a portion if they need the interest rate security and having the remainder as IO with a linked Offset. If their plan is to purchase further properties then they can utilise the accumulated funds in the offset. Thirdly, can you take out a mortgage against the mum’s property without tying the mum’s property to this property?
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comAccording to my sister the fixed 5.85% was just an example that their financial adviser put to them though encouraged them to explore better opportunities. I will mention to ask their financial adviser about fixing a portion of the loan.
I think their plan is to invest in other properties however I they have been advised to bite off more than they can chew and then chew like hell which I think is really bad advice.
They are borrowing 110% of the loan and is why they are using the mums house as security. The thing is, they don’t have an investment plan, this is just all advice from their accountant/family financial adviser. They want to make money and think because they are investing in a property that makes them wealthy.
