HELP 5 yr use-by date



From: Donna Larcos

My bank has just informed me that I can
only have interest only on my properties
for five years then I have to revert to P& I.
The idea of rolling P & Is is making me
feel a little green. Anyone else having this
problem or are you just shuffling lenders
every five years????

Please let me know what you do,
particularly if you have large property
portfolios that have been going for a
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Reply: 1
From: Keith J

The banks POV is that they want their money repaying eventually. So if you start with a 30 year term then after 5 years you can probably persuade them to go for another 5y I/O as you will subsequently have 20y to pay it all off with P&I.

Alternatively, threaten to refinance with someone who will give you (the customer) what you want. You imply you have a sizeable portfolio, so you should have a lot of leverage with them.
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Reply: 1.1
From: Sergey Golovin

This is just a copy from anther forum and not everything sad about negative gearing I agree with but still has a valid point about credit squeeze.

Serge G.

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Re: Negative Gearing

From: JJ
Date: 2/28/01
Time: 7:07:25 PM
Remote Name:


I would like to recognise P. Fitzgerald (my mentor) as the writer of the article I posted on the 27/02/2000.I share his thoughts on negative gearing. You must work
the numbers through ! Serge G thanks for your comments. Lets look at some facts in relation to economy. 1. GST and high fuel prices. 2. Change of Government
(Small Businesses have been hit hard with compliance GST/PAYG Costs)Cash flow problems. Many will go broke in the next 12 to 18 months. What happened in
NZ ? Unemployment. 3. Listen to the news (Most of the banks Economists say we are heading for a recession)little growth. Check out the ABS Statistics! 4.Banks
are right now tightening up on loans and writing of debts(First sign of credit squeeze). 5. What about the US economy are things looking up or down ? Down I
would suggest. 6 Many people will be sucked into WRAPS as a form of finance. 7. With no job to pay mortgage payments property is sold. 8.Then if the property
market falls (supply exceeds demand)The people who actually own the debt will get burnt if their security (property) value falls. 9.My advice is cash up as there will
be some cheap property available within 12 months.

Goods times are coming with some common sense. Although it is not common.

Last changed: February 28, 2001
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