Recent content by euro73

  1. E

    I'm calling it... 2015 is the peak

    Yes the APRA effect will take several months 1. pre existing loan approvals aren't affected. Those loans will be rolling through to settlement now and in coming weeks and months. 2. not all investors are affected by the APRA changes... But in coming months you will see the APRA...
  2. E

    I'm calling it... 2015 is the peak

    The doubling effect is a phenomenon supported only by an expansionary credit environment. Only now that APRA has moved the goalposts are people coming to understand that the supply and demand for credit is the driver of prices, not the supply and demand of property. Let me take you back to...
  3. E

    Does Brisbane still stack up?

    Unless it's a "single price" contract where you put down 10% now and pay the balance on completion, house & land isn't OTP. There is a clear distinction to how the finance is done. Traditionally, you get two contracts ; one for the land and one for the build. The land contract is...
  4. E

    Changes / tightening on servicing for investors

    You forgot to mention that neg gearing will be removed at higher LVR's :)
  5. E

    Changes / tightening on servicing for investors

    Just announced they are adding 2.25% buffer to their assessment of OFI debt. They haven't removed neg gearing though, which WBC did
  6. E

    Changes / tightening on servicing for investors

    STG to add 2.25% to your actual rate - effective June 22 Adelaide to add 2.25% to your actual rate - effective July 4.
  7. E

    Changes / tightening on servicing for investors

    ANZ have now joined the party with some relatively modest tweaks to their servicing calc. Previously they added 2.25% to your actual rate when assessing capacity. Now it will be 2.75%
  8. E

    Changes / tightening on servicing for investors

    Your post implies you understand the implications, which in turn means you already know the answer to your own question :)
  9. E

    Changes / tightening on servicing for investors

    This will continue to evolve as APRA monitors the impact of the changes. The I/O heavy books didn't happen overnight and the rebalancing of those books towards P&I wont happen overnight either.... As I have said before and will say again - get to know names like Adelaide Bank and Firstmac...
  10. E

    Changes / tightening on servicing for investors

    Try and look at it like this. APRA is concerned about too much systemic risk being caused by too much I/O debt. Those lenders with either A. A real imbalance of I/O debt v P&I debt or B. Greater than 10% year on year I/O growth have attracted APRA's attention. Westpac and CBA are top...
  11. E

    Lots of money - what to do with it?

    700K of equity = 10 x 70K "portions" You could consider doing an immediate 700K equity release, then using that 700K to fund the purchase of 10 x NRAS properties @ 400k - 450K each, contributing 70K each time to fund the 11.5% deposit + stamp duty + a 10K cash buffer for each purchase...
  12. E

    Changes / tightening on servicing for investors

    2nd mortgage :)
  13. E

    Changes / tightening on servicing for investors

    Correct .... Ultimately, you can use FM effectively for high quality deals . You cant use them for "near enough is good enough" like the majors often take on.... securitised or not - they will be the best way to save many investors bacon in the time ahead. Lazy brokers wont enjoy...
  14. E

    Can Fixed Rates go any lower ?

    Multiple lenders have already increased fixed rates in the past few weeks.
  15. E

    Changes / tightening on servicing for investors

    Most the 2nd tier and non banks are already quite conservative, policy wise. They may offer good borrowing capacity, but they still only do vanilla, full doc business. Just try writing a deal with any hairs on it at all, with Firstmac for example. Squeaky clean, vanilla stuff only. No in...
Top