Hi guys,
I need to have a look at my finances in a bit of detail as I am close to exceeding my risk tolerance and am sure there is a better way of managing things. Would be highly appreciative to draw on the collective views on the forum to see if I can get some advice – brokers and average punters alike just seeking your opinions on how you would address my structure.
The details:
IP
Location: QLD
Purchase price: $303,000
Current value: $375,000
Loan amount: $307,900 (following a refinance)
Interest rate: 7.28%
Loan type: Interest only
Strategy: Buy and hold long term
Financial institution: Police and Nurses Credit Society
PPOR
Location: WA
Purchase Price: $315,000
Current value: $350,000
Loan amount: $295,200
Interest rate: 7.11%
Loan type: Interest only
Line of Credit: $20,000 (essentially all used [i.e. maxed] so a debt)
Strategy: Reno – sell. Expected sale 8 months -2 years
Financial institution: Commonwealth
Credit Cards
Bendigo: $20,000 (essentially all used [i.e. maxed] so a debt) Interest rate – 12.5%
NAB: $8,000 (about $5,000 used so a $3,000 available) Interest rate – 20%
ANZ: $9,000 (essentially all used [i.e. maxed] so a debt) Interest rate – 20%
Car loans and other debts
Nil
Ok so in short I am managing to service the debt at the moment but only just. On the basis that even a 1% change in interest rates would really impact me I am thinking that fixing may be for me. Also not sure if there is a better way of dealing with the credit cards. Also if fixing, I am not sure of the implication on my PPOR if selling within the next 8 months to 2 years.
So the question – if you were in my situation how would you structure things differently.
Thanks in advance.
Craig
I need to have a look at my finances in a bit of detail as I am close to exceeding my risk tolerance and am sure there is a better way of managing things. Would be highly appreciative to draw on the collective views on the forum to see if I can get some advice – brokers and average punters alike just seeking your opinions on how you would address my structure.
The details:
IP
Location: QLD
Purchase price: $303,000
Current value: $375,000
Loan amount: $307,900 (following a refinance)
Interest rate: 7.28%
Loan type: Interest only
Strategy: Buy and hold long term
Financial institution: Police and Nurses Credit Society
PPOR
Location: WA
Purchase Price: $315,000
Current value: $350,000
Loan amount: $295,200
Interest rate: 7.11%
Loan type: Interest only
Line of Credit: $20,000 (essentially all used [i.e. maxed] so a debt)
Strategy: Reno – sell. Expected sale 8 months -2 years
Financial institution: Commonwealth
Credit Cards
Bendigo: $20,000 (essentially all used [i.e. maxed] so a debt) Interest rate – 12.5%
NAB: $8,000 (about $5,000 used so a $3,000 available) Interest rate – 20%
ANZ: $9,000 (essentially all used [i.e. maxed] so a debt) Interest rate – 20%
Car loans and other debts
Nil
Ok so in short I am managing to service the debt at the moment but only just. On the basis that even a 1% change in interest rates would really impact me I am thinking that fixing may be for me. Also not sure if there is a better way of dealing with the credit cards. Also if fixing, I am not sure of the implication on my PPOR if selling within the next 8 months to 2 years.
So the question – if you were in my situation how would you structure things differently.
Thanks in advance.
Craig