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From: Anonymous
I have read all the Jan Somers books and are most impressed but in reality regarding getting an IP portfolio that will allow a comfortable retirement I seem to have hit a brick wall.
Me? salary 62,000 pa, own my home valued 332,000. Got one IP 190,000, rent $185 pw, another that will settle in August, 227,000, est rent $235 pw, shopping around for the best loan. the 1st Ip, interest only loan, 80%, 20 % from LOC, My LoC is a total of $75000, of which $54,000 has been used to pay that 20% above. Looking for the best finance deal for the 2nd IP, which does not seem to be a problem.
But after that, when looking at properties OTP, that will settle in 8 to 12 months no lender will have anything to do with me, in fact one at ***** Loans, I was literally told to leave.
What I am finding is despite having good equity, no debts outside of IP, getting a prop portfolio looks unlikely.
In the latest Jan Somers book the example of
the couple getting 4 IPs using the equity of their home, is this real????. Unfortunately this book is outdated before it was released, "Buy median priced IPs " she uses IPs priced at $160,000. Only 6% of Melbournes auctioned properties are near this price. And they are largely on the city fringe. as we know median prices in good or potentially
good areas are around $300,000.
Maybe I will try lenders using the example in the book to see what happens.
Any hints feedback would be gratefully received.
During my travels have learnt a lot. One thing is that people who work in banks do not know very much about IP etc.
Example, one lending officer had never heard of "deposit gaurentee bonds'. Another was amazed to learn that OTP Ip incur very little stamp duty.
One loan offer for a large bank, was conditional, on no more borrowing, this was related to an interest only loan, asking how long this condition would be in place, I was told " until some of the principle is paid" when I asked how you can pay off principle on a interest only loan? they weren't able to answer.
I have read all the Jan Somers books and are most impressed but in reality regarding getting an IP portfolio that will allow a comfortable retirement I seem to have hit a brick wall.
Me? salary 62,000 pa, own my home valued 332,000. Got one IP 190,000, rent $185 pw, another that will settle in August, 227,000, est rent $235 pw, shopping around for the best loan. the 1st Ip, interest only loan, 80%, 20 % from LOC, My LoC is a total of $75000, of which $54,000 has been used to pay that 20% above. Looking for the best finance deal for the 2nd IP, which does not seem to be a problem.
But after that, when looking at properties OTP, that will settle in 8 to 12 months no lender will have anything to do with me, in fact one at ***** Loans, I was literally told to leave.
What I am finding is despite having good equity, no debts outside of IP, getting a prop portfolio looks unlikely.
In the latest Jan Somers book the example of
the couple getting 4 IPs using the equity of their home, is this real????. Unfortunately this book is outdated before it was released, "Buy median priced IPs " she uses IPs priced at $160,000. Only 6% of Melbournes auctioned properties are near this price. And they are largely on the city fringe. as we know median prices in good or potentially
good areas are around $300,000.
Maybe I will try lenders using the example in the book to see what happens.
Any hints feedback would be gratefully received.
During my travels have learnt a lot. One thing is that people who work in banks do not know very much about IP etc.
Example, one lending officer had never heard of "deposit gaurentee bonds'. Another was amazed to learn that OTP Ip incur very little stamp duty.
One loan offer for a large bank, was conditional, on no more borrowing, this was related to an interest only loan, asking how long this condition would be in place, I was told " until some of the principle is paid" when I asked how you can pay off principle on a interest only loan? they weren't able to answer.
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