Hi everyone, I’m new to the forum as of 2 seconds ago. Found this amazing site while looking for info on getting into the property market. Have purchased 1st IP positive cashflow just prior to end of financial year and am just in the throws of hopefully getting finance on 2nd IP. Found this one a lot easier to cope with but still have nerves regarding gaining finance. Broker gets back from holiday’s next week so will sit tight until then. Usually finance thru ANZ bank on a low doc loan, due to the fact we run our own (reasonably new business), but have equity in our PPOR. Any ideas on gearing ourselves to look better from the bank’s point of view? Our 1st IP is rented at $380 p/m and the mortgage on that is Interest Only $204 p/m – hoping that will count for something???? Any suggestions or tips would be welcome…thanks.
Firstly…. congrats. You are definetly moving in the right direction.
Making yourself look good for a bank is like dressing up for a blind date – you have no idea what they will be looking for…
Just keep finding good quality deals and trying to ‘sell’ them to the bank on the deals merits alone….
Keep trying…
Pete
…Beware of the dreamtakers…
I’m new to this game all I have is the book.
I’m curious as to the advantages of an interest only loan.
I guess that is paying the interest off only but not the principle?Hi suzie. Welcome and well done. I wouldn’t worry too much about trying to look better in the banks eyes. Your broker will let you know if figures stack up. If your bank says “no more money” for whatever reason, go somewhere else.
Cheers
Marty
[
] – Hello Newbie’s! Warning – this site is addictive.Re dressing up for banks – with a clean or only slightly tarnished credit record you’ll get good loans, low doc or otherwise. The low/no doc market is fiercely competitive with lots of lenders offering reducing rates so that after 2 years you are on the same as everyone else anyway – eg ING, Macquarie. [
] ANZ only lend to 65% on low doc, lots of others will lend to 80%.Re interest only – the up side is your repayments are lower and your tax claimable portion of expenses is higher, the down side is you can’t stay I/O forever without refinancing and never own the asset. I think I/O is okay for short term holds, fix and flicks etc, rather than accumulating long-term passive income assets.
Happy investing [
]
Mel
] – Hello Newbie’s! Warning – this site is addictive.
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