Hi All.
I seems it may be time to look elsewhere for funding to grow as I appear to have hit the serviceability wall.
I have been with Westpac all of my investing life and done very well from the arrangement.
IP#1 Built 2003 cost 380k, current val =$1m
IP#2 Bought 2007 cost $695, current val = $720k
IP#3 bought 2007 cost $675, current val = $795
2&3 are on fixed IO terms of approx 7.4% with 2.5 years to run.
IP#1 is on P&I variable.
Income on these 3 properties is $2700 per week thanks to sensational rents in NW regional areas and obviously they are cross collaterised.
I earn $110k per year.
I have just been informed that the rent on one of the IP's is to rise by $200 per week which will affect my taxable income considerably. I have been able to keep that below $60k. Obviously, my intention is to buy again and use this extra income to service another IP however the banks current lending criteria will only allow me $275k. This will not allow me to stay within my target band. I want between 500k and 700k for this.
Is it time to access all available equity by refinancing IP#1 and look to another lender.
Will this get me better than $275k.
Any advice on brokers or other banks current lending policy would be appreciated.
Thanks
Pango.
I seems it may be time to look elsewhere for funding to grow as I appear to have hit the serviceability wall.
I have been with Westpac all of my investing life and done very well from the arrangement.
IP#1 Built 2003 cost 380k, current val =$1m
IP#2 Bought 2007 cost $695, current val = $720k
IP#3 bought 2007 cost $675, current val = $795
2&3 are on fixed IO terms of approx 7.4% with 2.5 years to run.
IP#1 is on P&I variable.
Income on these 3 properties is $2700 per week thanks to sensational rents in NW regional areas and obviously they are cross collaterised.
I earn $110k per year.
I have just been informed that the rent on one of the IP's is to rise by $200 per week which will affect my taxable income considerably. I have been able to keep that below $60k. Obviously, my intention is to buy again and use this extra income to service another IP however the banks current lending criteria will only allow me $275k. This will not allow me to stay within my target band. I want between 500k and 700k for this.
Is it time to access all available equity by refinancing IP#1 and look to another lender.
Will this get me better than $275k.
Any advice on brokers or other banks current lending policy would be appreciated.
Thanks
Pango.