Say that to all the people who got crucified in the GFC . I can introduce you to few who lost much of their retirement nest egg , had to either go back to work of down size their really nice ppor's to be able to afford retirement.
Cliff
How to increase one's serviceablity via property acquisition
- Thread starter DavidMc
- Start date
Say that to all the people who got crucified in the GFC . I can introduce you to few who lost much of their retirement nest egg , had to either go back to work of down size their really nice ppor's to be able to afford retirement.
Cliff
I'm happy to provide my inputs (privately) if any brokers want to 'test' my figures.
dumping data on a broker calc sw is useful for a snapahot.
while on your numbers AMP presents 1.5 I can tell you that properly structured your portfolio can run to 1.8 to 2.5 x that................
ta
rolf
I am doing 10% down 10% in a term deposit secured against a H&L package.
Upon completion ..usually about 8-9 months...the valuation comes in about 30% over. Initial lend amount. I then get the 10% term deposit released. ...no LMI is paid.
Anyone else doing this?
Upon completion ..usually about 8-9 months...the valuation comes in about 30% over. Initial lend amount. I then get the 10% term deposit released. ...no LMI is paid.
Anyone else doing this?
You got approved for an LMI loan....no biggie. There are easy LMI loans and hard ones. Try getting a 95% + LMI + 20k cc loan approved consistently
Spot on SC...know a couple of people who went to the wall on CF+ ..they thought they could sell to get out of difficulties...but could not...banks closed in....
Ok see change introduce me to somebody who lost there retirement income by investing in blue chip bank shares. With imputation credits, which I would expect some-one who is going broke would receive banks were retuning 9-10% returns. You don't go broke making money. There would be some other reason they lost there money one being poor risk management and lack of down side protection , such as purchasing insurance such as put options. Bank shares have also had 30% GC since GFC. I bought 300k of shares before the market bottom Lost 100k , but was protected with non recourse loans and put options so it only cost me 15k. Did little better than broke even on 50k. after option fee and loan repayments and commissions made 36% in 3 years on 50k or 18k.(Berkshire Hadthaway) 100k in no brainers like Vitterra and graincorp that were trading at half value and obvious take over targets doubled and paid good divedends. But all that is irrevelant as the context was about increasing servicibility. The banks need income or cash flow to give you a loan simply leaving money sit in a bank does nothing for serviceability, it is the total loan amount available to be drawn that counts, otherwise any-one could borrow money from a friends, family, pawn broker, chattel mortgage put it in a bank get a loan. Leaving money in the bank either through loss of tax claims, or tax paid on it, you only effectively end up with 3% or nothing after inflation. It is people who rely on interest to live on who are finding it hard to met living expenses and have eroding capital which will make it increasingly difficult. 9% after tax returns and growing capital gives many times the serviceability than money eroding away in the bank. You need to look at servicabilty 3,5, 10 years a head, by all means as risk management keep 2 years serviability available as cash or some form of guaranted availablility, but longer than that I think you are missing out on huge opportunity costs
Unless they were stormafied in the gfc,
Done it in the past never put a 10% deposit down tho, I don't like having term deposits of more than 200k. But L have used 200k term deposit earning 6%, to secure equity in another loan at 5.7%, to purchase land, then the land is used to fund the development. Now interest rates are only 4% I only have 50k in term deposit. Figured I might as well lose it in the share market as eventually have it become worthless sitting in a bank.
I was able to do this last year....but harder now....getting the money is easier...but gettinh these non-standard deals are harder....and harder...
Similar threads
