Hi all, I have been lurking on these forums for quite some time, reading some good advice and the like. And now I'm looking for some myself.
It would appear that with everything that has happened in the last 18 months has somewhat affected my (our) borrowing capacity for the next purchase. So it would appear that I have hit that servicability wall. On top of this I have been pushed to the limits over the last 6 months with my JOB and I feel I have hit a mental wall as well. So I'm looking for some Clarity to my plan for a potential next purchase.
We have made pretty decent mistake in our purchases which is currently hurting and I am looking for a way to neutralise that investment in the eyes of the banks.
My current portfolio is as follows:-
PPOR- Kellyville NSW - $510k val - 408k loan - LVR 80% ( about 200k principle / 200k ELOC )
IP1- Deception Bay QLD -$275 val - 245k loan - LVR 90% - $290p/w rent
IP2- Corlette NSW - $750 PP - $600k Loan - LVR 80% (at point of purchase) - $520p/w net income ( this is the problem child as a current valuation would be closer to $350k )
IP3- Henley Beach SA - $250 Val - $212.5k Loan - LVR 85% - $250p/w rent
Now... It is IP2 that is my concern in regards to future purchases as this deal for alot of different reasons turned sour. A Current valuation there would be closer to $350k meaning an LVR of 170% and the total portfolio LVR of over 100%.
If we sit tight as we are now we can service the loans, however we would like to keep purchasing. It is obvious we need to start balancing the -CF with some more neutral or +CF properties.
The bank will lend us ATM for a 500k Property with 10% deposit, we have in the order of $60k in the ELOC for deposits / costs. In reality we could revalue our PPOR shortly (as we are improving the property) and should be able to get a Val in the $580 area to access more equity for deposits.
So what to look at?.....
I'm researching Gladstone ATM, and looking for any CF+ opportunities that popup however I do keep comming back to the IP2 development. This is the area I need advice on.
The development is a Resort style serviced apartments, and we have a track record of an average weekly net income of $520 over the course of the year. There are quite a few of the units within the development for sale for wide ranging prices, but the most recent sales are in the $350k area. I'd like to get rid of it, but I'm yet to find a way of doing so and getting rid of the $600k loan.
I'm keen to look at getting one of these, however my wife is of differing opinion (once burned etc, etc) At the current sale prices they look to be a good deal on the surface if you look at the property on it's own.
The issue is My main bank won't touch it, I have spoken to 1 broker that can't find a lender that will look at it as a residential loan.
My Questions are...
1. Do I keep looking at this or am I digging myself deeper.
2. Who / how to finance this. (commercial loan?)
3. Can anyone see a way of getting rid of it?
Cheers
Simon
It would appear that with everything that has happened in the last 18 months has somewhat affected my (our) borrowing capacity for the next purchase. So it would appear that I have hit that servicability wall. On top of this I have been pushed to the limits over the last 6 months with my JOB and I feel I have hit a mental wall as well. So I'm looking for some Clarity to my plan for a potential next purchase.
We have made pretty decent mistake in our purchases which is currently hurting and I am looking for a way to neutralise that investment in the eyes of the banks.
My current portfolio is as follows:-
PPOR- Kellyville NSW - $510k val - 408k loan - LVR 80% ( about 200k principle / 200k ELOC )
IP1- Deception Bay QLD -$275 val - 245k loan - LVR 90% - $290p/w rent
IP2- Corlette NSW - $750 PP - $600k Loan - LVR 80% (at point of purchase) - $520p/w net income ( this is the problem child as a current valuation would be closer to $350k )
IP3- Henley Beach SA - $250 Val - $212.5k Loan - LVR 85% - $250p/w rent
Now... It is IP2 that is my concern in regards to future purchases as this deal for alot of different reasons turned sour. A Current valuation there would be closer to $350k meaning an LVR of 170% and the total portfolio LVR of over 100%.
If we sit tight as we are now we can service the loans, however we would like to keep purchasing. It is obvious we need to start balancing the -CF with some more neutral or +CF properties.
The bank will lend us ATM for a 500k Property with 10% deposit, we have in the order of $60k in the ELOC for deposits / costs. In reality we could revalue our PPOR shortly (as we are improving the property) and should be able to get a Val in the $580 area to access more equity for deposits.
So what to look at?.....
I'm researching Gladstone ATM, and looking for any CF+ opportunities that popup however I do keep comming back to the IP2 development. This is the area I need advice on.
The development is a Resort style serviced apartments, and we have a track record of an average weekly net income of $520 over the course of the year. There are quite a few of the units within the development for sale for wide ranging prices, but the most recent sales are in the $350k area. I'd like to get rid of it, but I'm yet to find a way of doing so and getting rid of the $600k loan.
I'm keen to look at getting one of these, however my wife is of differing opinion (once burned etc, etc) At the current sale prices they look to be a good deal on the surface if you look at the property on it's own.
The issue is My main bank won't touch it, I have spoken to 1 broker that can't find a lender that will look at it as a residential loan.
My Questions are...
1. Do I keep looking at this or am I digging myself deeper.
2. Who / how to finance this. (commercial loan?)
3. Can anyone see a way of getting rid of it?
Cheers
Simon
