Unlimited Finance

Hi,

can u let us knwo what this unlimitied finance technique is ?

i am a national employee may eb even i can benefit fromt that.

Yep. It appears that every time you guarrantee a loan the bank will do a CRAA check – hence an enqiury will be listed.

Terryw
[email protected]

I can understand how you can have unlimited finance from a serviceability viewpoint – so long as your average rental yield is high enough.

But doesn’t unlimited finance require unlimited deposits?

I can’t understand how you can have unlimited finance with a limited amount of deposit.

My only thought at this stage is to build this requirement into your strategy. For example, your strategy might be (in part or whole) to ensure your average yield is over 8.5% (for buy & hold properties) and that you do a buy-reno-sell every 2 properties to create instant equity. You can then use that equity as a deposit for your next two by & hold properties.

BUT there may be a better way – if so, I’d love to hear it.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hey Slacker

Hope your holiday is going great.

Safe trip back!

Dave

Ok, I think I might have found the answer…

If you go to Baycorp Advantage’s website to it FAQ – “What is on my credit file?” (see http://www.mycreditfile.com.au/help/faq_personal.asp?CountryID=1&UserTypeID=11)

It says:

quote:

---

What is on my credit file?
Information about you and your credit history including:

– Personal details such as: name: residential address: date of birth: drivers licence number:

– Credit applications and enquiries you have made during the past 5 years

– Records of some current credit accounts

– Overdue Accounts (Defaults) which may have been listed against your name

– Bankruptcy information,Judgements

– Public record information such as Directorships and Proprietorships

---

It defines a credit application as:

quote:

---

A credit application is an application for credit made to a credit provider. These are held on file for 5 years from the date of the application.

– The information recorded includes:
– Who the application was made to
– The date of the application.
– The amount applied for.
– A general indication of the nature of credit being sought.
– A reference number for the application.
– Whether the application is a joint application, or relating to an application to act as guarantor

---

Therefore, it seems that if you act as gaurantor then it will be recorded on your credit file.

This is sensible as the strength of a guarantor is a very important consideration for the lender – especially where the applicant/s is not strong enough in their own right.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Steve
Well, I tested it out a few months back, and sure enough, a loan to our company/trust structure where we were personally listed as guarantors shows up on my husband’s credit file, specifically stating he applied as guarantor.
Perhaps you manage to avoid this because you have a good, long term relationship with a personal banker at one bank, so they don’t do a credit check every time you borrow money?
It seems we mere mortals do get checked… []

Keep smiling
Felicity

Hi Folks

Just on the unlimited deposits, Steve and DAve are a Wrappers (not the doof doof type) so when they do a deal the new purchaser gives them his next deposit, the yield is 7%+ I assume and hence unlimited finance, am I right guys.

Cheers
Leigh K

Read, learn, grow but most of all just do it.

So Terry

Are you saying these private lenders will borrow on the basis of valuation rather than purchase price?

Also what LVR do they lend at?

Cheers

David U