Hi everyone ,Multiple property ‘ownership’ is something I’m chasing myself,But there is just something I’m not understanding or missing. Its mentioned that with positively geared property there is no limit to the amount of properties that you can buy, but don’t you still have to borrow the money for the property in the first place.Whilst getting approval for an investment property the lender will always look at servicibility for the loan whether the property is to be positve or negatively geared.I have 2 properties 1 neg the other + and am going for my third and only just scraping in to get the loan eventhough I dont intend buying unless its +ve geared, they still only look at my servicibility, What am I missing??? Even with both properties positively geared this would not increase my yearly wage by any significant amount.
Yes, your right. You would still ahve to qualify via serviceability and would need to come up with deposits (or equity as well). I think Stuart worked it out that a property would help your serviceability if you were getting 11% or more as a rental yield. Another thing to look out for is the line ‘too rent reliant’ which banks sometimes use.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Kierra [
]Have you seen a broker? How are you structuring your loans – Interest Only or Principal & Interest, Line of Credit or basic variable, and at what LVR?? Also are you shopping between lenders (often a good option) or sticking with one?
This info will help with answers … [
]Mel
How to find a trustworthy Mortgage Broker, who
really finds you the best deal and not the Bank
or Institution that pays the highest commision.Sach – just shop around. Ring up a few, ask people you trust who they’ve used that they can recommend or if you think any of us finance folk here can help just ask! [
].Re getting the best deal – to be honest getting the RIGHT deal is often the most important bit, and if you’re educating yourself on options I believe you’ll be able to pick the right broker for you.
[
]
Melthanks, what do you reckon bout doing the research
yourself on the internet / papers / magazines,
and saving on the mortgage broker fees?
Avg charge of a Mortgage broker?Sach, as one of those horrid brokers I can happily say the fee is FREE [
] most of the time as lenders pay us – and despite what you hear occasionally most lenders pay the same!!Personally I think doing enough research to replace a FREE visit with someone with knowledge of over 400 products from 35 lenders is going to be tough, but not impossible as a lot of the lenders have good sites.
Good luck!
[]
MelA broker should be able to add value over and above just recommending a good product. Things like:
– Loan structure.
– Serviceability issues and how some lenders may be better for them.
– Dealing with issues such as abnormal properties (small units, multiple properties on one title, rural areas, etc.).
– Give you the benefit of other client experiences.
– Help planning for the future (so that you can continue purchasing), etc.
– Etc, etc, etc.Brokers should be able to give you information (and add value) that is not available from lenders individually.
Plus they could not only save you money but probably hours of heart ache. For example, try ringing a lender twice and ask the same question each time. 9 times out of 10 you will get 2 different answers.
Mel – Don’t ever refer to brokers as “horrid”. They can add a lot of value. Sure there are bad ones but there are good ones too. Be a bit more respectful to our profession. I realise that you said it in jest but I still don’t thinks its a good thing to say. [
]Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auSorry chief [
]!I have heard some horror stories (as no doubt most people who watch the evening news have unfortunately) but I honestly believe we deliver great value for all the reasons you point out above!!
Actually it’s one of my pet peeves re how some of the biggest players in the mortgage & real estate businesses base almost their entire advertising campaigns on discrediting everyone else as shonks with a self-righteous “we’re the ONLY ones you can trust” attitude. You know who I mean. I think it’s disrepectful of the majority of people in these professions doing a damn fine job for their clients and being totally transparent & honest in their dealings. Put a bit crassly these ‘attitude’ folk are shitting in their own nests – messy, and somewhat lacking in logic to my way of thinking!!
Hopping off the soapbox … plonk.
[
]
Mel
]
]
]!The topic ‘multiple loan servicibility.. whats the lenders vi’ is closed to new replies.
