investment packages offered by banks

[bloffy70]

Can I firstly say congratulations to all who so openly give their opinions and advice so readilly on this forum.It has given me hours of enjoyment reading old posts.

My Position;
3 IPs mv - $590,000
Mortgage - $75,000
No consumer debt
Approx $300,000 in cash

I haven't purchased a property for over 10 years and have recently got the bug back. I have identified where I am going to buy but would like to question anyone with knoweledge regarding the packages offered by the major banks or other financiers regarding property investment.

This is an area I have never really paid a lot of attention to but with my reading have seen that of course with the right structure it can not only save you money but place you in a position to continue to invest.

If you require any further details please ask

In anticipation
Kent

 

[Rolf Latham]

Hiya Kent

nice portfolio

im sure most lenders will welcome u with open arms......................

Much does depend on what u want to buy, when , how and what ur current scenario is , there isnt really a cookie cutter soln.

Generally most of the majors will have some form of professional package which will allow you to access equity and buy more properties.

As u have idnetified the structuring and timing of what lender when is an important thing to workj out BEFORE you get to the service wall.

A bankie cant really help u with that, but you, yourself , and/or a good independent broker can.

ta
rolf

 

[Omega Investmen]

Go for a higher return/risk area - mining boom town

Hi Kent,

What a fantastic position you are in! Congratulations as well.

I imagine you have three properties in metro/stable areas? I would recommend you buy in a mining boom town like Roxby Downs (21% pa growth for the last five years) or Gladstone (26% in the last 12 months and a $2.2bn development due to start next year).

They are higher risk areas but perfect for you. They offer:

1) diversification - you are already (potentially) concentrated in metro areas

2) can take on board the higher risk - plenty of equity buffer if anything goes wrong

3) returns will be higher than most places, due to the once-in-a-lifetime commodities boom

All the best - have done plenty of research into mining towns if you're interested.

Flynn

[email protected]

 

[Simon]

Hi Kent,

What a fantastic position you are in! Congratulations as well.

I imagine you have three properties in metro/stable areas? I would recommend you buy in a mining boom town like Roxby Downs (21% pa growth for the last five years) or Gladstone (26% in the last 12 months and a $2.2bn development due to start next year).

They are higher risk areas but perfect for you. They offer:

1) diversification - you are already (potentially) concentrated in metro areas

2) can take on board the higher risk - plenty of equity buffer if anything goes wrong

3) returns will be higher than most places, due to the once-in-a-lifetime commodities boom

All the best - have done plenty of research into mining towns if you're interested.

Flynn

[email protected]

I disagree.

Property investing is a long term proposition. Fast growing mining towns are not a long term investment. Mines have a finite life.

I prefer capital cities, major regional cities and coastal towns.

But if you own three IPs then you already know where to buy.

Your question is on lenders. If you have all four properties with a major lender then your cheapest bet is to leave the loans where they are, inquire about the professional package and negotiate a further discount. A good broker cam help you with this. Rolf who answered above is a good broker.

Do some reading on cross collaterisation and decide your view on this. Many investors avoid it.

All the best,

 

[alexlee]

I imagine you have three properties in metro/stable areas? I would recommend you buy in a mining boom town like Roxby Downs (21% pa growth for the last five years) or Gladstone (26% in the last 12 months and a $2.2bn development due to start next year).

They are higher risk areas but perfect for you. They offer:

1) diversification - you are already (potentially) concentrated in metro areas

2) can take on board the higher risk - plenty of equity buffer if anything goes wrong

3) returns will be higher than most places, due to the once-in-a-lifetime commodities boom

Omega, are you confident enough that you'll compensate investors on losses if they buy in Roxby and Gladstone?

I also ask, if bloffy has the equity buffer to survive anything going wrong (which he does), how much equity buffer do you have?

Do you think the mining boom, especially in the short term, will keep going if the US goes into recession? This is start to looking a distinct possibility.

The other question is: If I said to you I would only buy in metro areas, what would you recommend?
Alex

 

[Buzz]

Omega I am interested in your thoughts on Roxby. When I was there recently speaking at an event the talk around town was the BHP Billiton new accomodation being built. I believe they will house between 2000-4000 people. How does the new supply effect your figures?

When I visited Mt Isa 3 years ago I was impressed then bythe then huge growth and was tempered by the recent deal to build mine funded accomodation with a major developer. Arguably for 3 years or so I would of made some money until I sold to some unreached newbie who was told to cash in on the recent mining boom.

I prefer to invest for long term growth. However your advice seems to be the opposite - is this because your research does not show the development proposals or that your speaking from your personal past experience of high growth?

Just out of interest Cooper Peady has grown something like 125% in the last year - if anyone would like a few photos of what is there amongst the sand hills I would be happy to send them on.

Jane