Finance Alternatives

[sanj]

That is precicely what I wanted to know, thanks

This is just 1 of many IPs I have planned for 2012, so it might be better starting off with a good relationship with 1 of the big 4 rather than getting shakled to a small lender who will end up limiting my plans.

if youve got a good broker who got you a 90% loan for a HDT while you're casually employed (No mean feat) and you plan on buying a lot more properties i dare say you would be better off starting with a good relationship with him/her and not burning that bridge

 

[Ergophobia]

I don't have a problem paying a fee for good service, and I'm not about to switch and stiff my broker after she has done such a good job for me.

I'm just after the best product

 

[Peter_Tersteeg]

It's likely you have got the best product.

A 5 minute phone call with an online lender does not give you an approval. Your scenario is quite complex as others have indicated.

You may also find that with many discount lenders, you get the best advertised rate at the beginning, but the funds allocated to you may attract a higher rate later. This may not be the case with state custodians, but it is the case with many others.

 

[srini]

On a $400k loan I/O, a 0.3% discount will save you around $1200. Is that worth jeopardising the relationship with a broker that has worked hard for you?

Having been in the same situation in the past, I chose to stick with the broker and it has been a great relationship for me. He has gone in to bat for me multiple times with ANZ.

The choice is yours.

I'll get off of my soap box now.

 

[Ergophobia]

yeah, when I thought there was a 1% difference the alternate lender looked more attractive.

I think considering the slim difference between the rates and the great work my broker has done, I'll stick with STG

 

[the_investor]

Purchasing the 2nd IP

Hi All,

I am new in the forum.

I am currently assessing my ability to buy the 2nd IP. I will give a bit more insight into the first IP first.

Location: Perth, WA (Built 2009/2010)
Bank Valuation (Jan 2012): 425k
Debt on this Property: 336k
Lender: Bankwest
Rental Income: $410/per week (21320 per annum)

I am currently boarding so my current rent is $150 week. Gross Salary: $68,807. Have 20k worth of credit cards (Disaster I know!). But these card are on balance transfer at the moment, which actually costs me like $35 a month due to introductory rates for another 1 year.

I tried to do a cashout from Bankwest. They only approved a 90% draw out. Which gives me a cashout of $46500. This may be sufficient if I didn't have those two credit cards.

I tried to get the below deal from the bankwest. Cashout upto 95% with Approval in Principle (AIP) to purchase the second IP from Bankwest itself - but No Cross-Collaterisation. Mortgage Broker I have doesn't seem to know that much tricks on this (May be he is a bit new).

Can I get Somersofter's view on my situation??

 

[Rolf Latham]

Hi All,

I am new in the forum.

I am currently assessing my ability to buy the 2nd IP. I will give a bit more insight into the first IP first.

Location: Perth, WA (Built 2009/2010)
Bank Valuation (Jan 2012): 425k
Debt on this Property: 336k
Lender: Bankwest
Rental Income: $410/per week (21320 per annum)

I am currently boarding so my current rent is $150 week. Gross Salary: $68,807. Have 20k worth of credit cards (Disaster I know!). But these card are on balance transfer at the moment, which actually costs me like $35 a month due to introductory rates for another 1 year.

I tried to do a cashout from Bankwest. They only approved a 90% draw out. Which gives me a cashout of $46500. This may be sufficient if I didn't have those two credit cards.

I tried to get the below deal from the bankwest. Cashout upto 95% with Approval in Principle (AIP) to purchase the second IP from Bankwest itself - but No Cross-Collaterisation. Mortgage Broker I have doesn't seem to know that much tricks on this (May be he is a bit new).

Can I get Somersofter's view on my situation??

QBE wont be too hot on 95 % refi and 95 % purchase

Even though servicing may work, you really need to keep good care of your credit file...........I suspect she is a bit busy due to all the cards and things

Start with getting a copy from www.mycreditfile.com.au

Then u can make a more directed assessment as to what your next move might be.

My gut feel is you might be going a bit hard a bit early, and you may need to manage the vals process on the existing property a little better, possibly late now I know

ta
rolf



ta
rolf

 

[lizzie]

Have 20k worth of credit cards (Disaster I know!). But these card are on balance transfer at the moment, which actually costs me like $35 a month due to introductory rates for another 1 year.

This will be your big stick for the moment. Personally, I'd recommend you pay it off asap ... not at $35/mth ... and then reduce the limit as you reduce the balance.

When assessed the lender takes into account the limit (not the balance) at current CC interest rates (not balance transfer rates).

Everyone really needs a debit/credit card - but a $0 balance on a limit of $5,000 would go a long way towards improving your situation.

Also - what are you looking at for your next IP. For me personally, a 5% return on an IP is a bit low. I'd be looking for at least 7-8%. I understand you'd get good depreciation tho.

What are you looking at for your next IP? Perhaps it might be worthwhile saving your butt off (and paying off your CC) for the next 6 months so that you have the full deposit - or lower your sights to something a little cheaper.

 

[Aaron_C]

Ouch $20k on balance transfer is a lot for a simple PAYG loan especially on your salary....they won't like that one bit.

 

[the_investor]

Perth Vs Brisbane

Hi Guys

Sorry for delaying to get back to this forum in a while. A lot happened since my last post. Had salary increase (quiet substantial!) bought one property Success, WA - rented at a whopping $545/week . Started building the next in Southern River in April (now close to completion) or so I think

Builder is WAHC (BGC) - They built my first one as well. I had a good positive experience with them and seems this time as well..

Now 3 houses under belt .. However I am now looking at Brisbane area now any help appritiated...