Finance

[WebBoard]

From: Mike .


Portfolio Re- Finance $$$$
From: Gee Cee
Date: 5/24/00
Time: 12:43:59 PM

At present I have a block of townhouses valued @ around $460000 & a block of flats valued @ around $350000.

The present fixed rates on these loans expire at the end of the year. They were financed pretty tightly at the time and the bank holds mortgages over these properties as well as 3 other properties.

What I now want to do is finance each property separately so that everything is not locked up to tight.

Total loans required around $630000. But spread over two properties. With a separate mortgage on each.

I am at present starting to look about for someone to re-finance with.

I would appreciate any comments or leads to a good source of financing.

Regards, Gee Cee

 

[WebBoard]

Littlemaze

Reply: 1
From: Mike .


Re: Portfolio Re- Finance $$$$
From: littlemaze
Date: 5/24/00
Time: 2:22:37 PM

Gee Cee,

As your LVR is under the 80%, you have the advantage of being able to shop to get a deal as most banks are happy with a 80% LVR. Ask whether they have a "professional" package as these often have discounts on the interest rates. Have dealt with 1 bank that took over 3months (woeful!)to settle a mortgage(not north, not south, not east, but...

I have just spoken to St George and they: Lend up to 90% for IPs,factor in tax deductions when calc serviceability, take 80% of rental income when calc serviceability,start up costs around $600. If you are planning on having more loans with them, ask them to waive the establishment fees (you never know what they can do!). I have not had any trouble with St George (and no, I don't work for them, don't get commission etc....)

Check out www.freeol.com.au - good site to compare loans. They are offering cash back but I haven't done a loan through them so I can't comment on their level of service.

Good luck. Hope this helps.

 

[WebBoard]

Robert

Reply: 1.1
From: Mike .


Re: Portfolio Re- Finance $$$$
From: Robert
Date: 5/25/00
Time: 5:17:05 PM

I have spoken to my bank manager about a similar situation. His answer came along these lines.... (True strory about one of his clients) This person owns 12 IP plus his own property. The bank holds 13 seperated mortgages held over 7 properties. There is 4 mortgages over his main residence. What the bank does is holds the property as security and then will allow another new mortgage when the property value has increased, thus why there is 4 on the main residence.

What you could look at doing is putting one of your blocks of units to full LVR amount. Then the second property only has, say, 50% LVR. This gives you the ability to then take another new mortgage over the second property to purchase another IP with a smaller LVR held over it. If you keep all this with the one lender, and have a forward thinking manager like mine, you could really make a lot of difference.

More then finding a good loan find yourself a good bank manager.

Regards Robert

 

[WebBoard]

Gee Cee

Reply: 1.1.1
From: Mike .


Re: Portfolio Re- Finance $$$$
From: Gee Cee
Date: 5/30/00
Time: 11:20:05 AM

Dear Robert

Thanks for your reply.

I agree with what you have said. In fact that is how these properties were set up around 5 years back.

At that stage i had a great bank manager that knew exactly what I was doing and how to set it up.

Problem now is that over the last two years I have had 3 different other managers as the good manager left.

These managers are hopeless and do not even think I should have had the finance to start with.

That is why I now looking to finance separately with different financiers.

Thanks again, Gee Cee