What to do when you are maxed out for finance

Hi Tyzzer,

Great question, and one that I am sure many of us have agonised over before. One of Steve’s books talks of “Multiplication by Division” (clearing non-performing assets to harness Equity and invest into better-performing assets). In short, his examples indicated “Sell one to enable you to buy two”.

Now, there is SO MUCH wrapped around that – and you have alrady hit on some…. CGT would be a biggie, but then so too would be selling costs, buying costs, stamp duties, LMI, loss of rents, etc. So finance in all its forms are at the heart of this situation. I am almost certain Steve would be saying “Run the numbers” – and that would likely start with a huge “heart-to-heart” with a Broker whom you know and trust.

There are a host of other things to consider too – others would include “If you sold, is there somewhere/something else that will return you a way better performance than what you are selling”?

Or “Is there a way that you can invest some $$ into what you already hold to add to their values, or their incomes”? (Make them positive geared, and/or ready to sell – whichever….)

Keep in mind what I think are three of Steve’s main mantras:-

“Buy problems, sell solutions” –
“Make the most money, in the shortest time, with the least risk, and the lowest aggravation” and
“Does the decision you make move you closer to your goals, or away from them”?

It is great that you are thinking “What’s next?” – I hope others (particularly finance people) will reply to add their ideas too.

Well done so far! ;)

Benny

Hi Tyzzer,

There are a number of Mortgage Brokers on the forum – look at a few threads in the “Help Needed” or “Finance” forums and check the signatures of those who respond. Most of them say “You don’t need a Broker nearby, as all work can be done using FAX, email, etc.”

Of course, YOU might want to be able to drive across town and sit in front of your adviser. Quite understandable. Or maybe something can be arranged using Skype or similar so that you can be “face to face”…..

Maybe some of our members can point you to a knowledgeable MB in Perth,

Benny

Tyzzer1983 wrote:

Do you or anyone else know a really good broker or financial advisor in Perth that I could discuss some ideas with.

Colin Rice is from Perth (I don’t know how to tag here, sorry).

As others have mentioned – just because one bank (or even a broker) may have said no more, doesn’t mean that’s necessarily the case. Each lender has different ways of calculating your capacity to borrow and they vary WIDELY. By getting another opinion in these cases it can mean the difference between ending your journey prematurely, or moving to the next stage in your investment path.