LOE here we come
- Thread starter Dazz
- Start date
Awwh shucks...
thanks for the kind remarks.
No point going down the path if you can't share your experiences I don't reckon. Better to point out a few potholes in the road such that a few may avoid them. No need to step into a stumble through them if you know they are there....best to skirt around and keep going.
Rixter - you seem to be a tad further down this road than I....I may need to jump on the hog and take a ride down to Atwell and drop in for a cuppa and hava chinwag about the LOC / LOE thingy.
thanks for the kind remarks.No point going down the path if you can't share your experiences I don't reckon. Better to point out a few potholes in the road such that a few may avoid them. No need to step into a stumble through them if you know they are there....best to skirt around and keep going.
Rixter - you seem to be a tad further down this road than I....I may need to jump on the hog and take a ride down to Atwell and drop in for a cuppa and hava chinwag about the LOC / LOE thingy.
Hi Dazz .. from one of your earlier posts .." Come on in .. the water's fine"
LL
Congrats Dazz,
How are you guys going with getting the finance these days? Being rent reliant?
Is sub prime making it difficult?
Are any of you refinancing while you dont have a PAYE job or business or is the idea to get the big loan before you quit?
Are lenders happy to lend to LOE people these days.
Are you using conventional finance or low docs.
Are you using low LVRs to avoid scrutiny by the lenders?
MJK
Now there's a set of very relevant questions.
To tell you the truth, the clown at the CBA who took over from our good banker when he got promoted has always said no to me...ever since he got there. I approached him about the question of LOE and he just laughed. He said he doesn't know anyone who does this, he wouldn't support it and wouldn't dare propose to start the paperwork on it. That was the very final nail in the coffin in the Dazzling vs CBA coffin. it's only taken 12 months, the relationship with this guy has gone from white hot to stone cold dead. Hence the invite around with a MB.
Low LVR's, we're tracking at about 55%, but it's hard to earn 1% nowadays, she's either growth to bring it down or she stays where she is.....or for the HG's of this world, a drop in values would increase the LVR.
What type of "financial product".....dunno, the Banks only have money to sell. They don't have products I thought, only money.
money with a different set of rules for repayment and borrowing costs are now "product"...
Congrats Dazz,
How are you guys going with getting the finance these days? Being rent reliant? ( No. interest plus costs plus living exceeds rents)
Is sub prime making it difficult? ( No, doesn't seem to come up.)
Are any of you refinancing while you dont have a PAYE job or business (yes) or is the idea to get the big loan before you quit? ( also a good idea, but just a step along the LOE path.)
Are lenders happy to lend to LOE people these days. ( Mine seem to be, but the loans are "substantial". )
Are you using conventional finance or low docs. ( conventional ..I think..we just give 'em whatever they want to see..open book).
Are you using low LVRs to avoid scrutiny by the lenders? ( avaliable LVR on one facility is 80%, another is 60% ...but we don't use anywhere near those limits. )
MJK
Hope that helps. LL
Just read this thread from start to finish, talk about motivating !
It's so comforting to have a forum with like minded individuals all effectively having the same goal..........to create choices in life for themselves and their families. I don't know how much I would have achieved so far without inspirational stories like these.
Having been fortunate enough to ride the recent Perth boom, I'm now gearing up for the Sydney boom.......hopefully will start seeing signs of this by 2010 LOE (at least partially) may than become a reality not long after.
.....Can someone just tell the RBA the rate cycle is going the wrong way
Bring it on !!
Ross
It's so comforting to have a forum with like minded individuals all effectively having the same goal..........to create choices in life for themselves and their families. I don't know how much I would have achieved so far without inspirational stories like these.
Having been fortunate enough to ride the recent Perth boom, I'm now gearing up for the Sydney boom.......hopefully will start seeing signs of this by 2010 LOE (at least partially) may than become a reality not long after.
.....Can someone just tell the RBA the rate cycle is going the wrong way
Bring it on !!
Ross
Sort of helps, sort of doesn't.
By low LVRs I ment "are the banks happy to lend to unconventional scenarios if they only lend to say 60% insted of 80%.
If this was the case one would need a larger portfolio to start LOE than with higher LVR borrowings.
Dazz,
Was the mortgage broker much help and what lend ratio was he able to get for you?
Do you think that you will get the same ratio when you have left the work force next time and was your PAYE of significant importance in the finance aproval?
MJK
By low LVRs I ment "are the banks happy to lend to unconventional scenarios if they only lend to say 60% insted of 80%.
If this was the case one would need a larger portfolio to start LOE than with higher LVR borrowings.
Dazz,
Was the mortgage broker much help and what lend ratio was he able to get for you?
Do you think that you will get the same ratio when you have left the work force next time and was your PAYE of significant importance in the finance aproval?
MJK
She never turned up....I can't be much of a prospect huh !!
She re-scheduled for next week, so I'll know more then, but it sounded like it was going to take a while (read months) to set up.
Apparently the best thing is to have a fully unencumbered property, and then have two LOC's secured against it. One for private expenses and one for deductible expenses. I dunno, I'm new to all of this. The accountant said it's all possible and also mentioned the two LOC's....so who knows.
In terms of the salary, the MB definitely mentioned that it would be best to set all of this nonsense up before I leave paid work. To me it doesn't matter, but to the Banks apparently it matters heaps. They keep on mentioning things like "When are we going to get paid the loan funds back ?" I keep telling 'em "Yeah right, I've never paid a loan off yet, and not about to start now." For some reason they don't like that ??
She re-scheduled for next week, so I'll know more then, but it sounded like it was going to take a while (read months) to set up.
Apparently the best thing is to have a fully unencumbered property, and then have two LOC's secured against it. One for private expenses and one for deductible expenses. I dunno, I'm new to all of this. The accountant said it's all possible and also mentioned the two LOC's....so who knows.
In terms of the salary, the MB definitely mentioned that it would be best to set all of this nonsense up before I leave paid work. To me it doesn't matter, but to the Banks apparently it matters heaps. They keep on mentioning things like "When are we going to get paid the loan funds back ?" I keep telling 'em "Yeah right, I've never paid a loan off yet, and not about to start now." For some reason they don't like that ??
Hey Dazz, just read this entire thread....wow....awesome. I'm sooooooo inspired. Can't wait for the Dazz-book! Time to do what one wants is so important, and there is so little of it when you have a full-time PAYG job, and trying to create wealth and manage IP's.
Sorry to hear your MB didn't turn up. I've just had a few meetings with mine, and she's awesome....seems to have the banks in the palm of her hand. Just got me some great refinancing where we've ditched the LMI-lodoc-nodoc loans, and got cheaper fixed-interest rates. So the opportunities are still out there. (Saving me $20K in the first year alone.) Happy with that.
LOE is my goal too. Just a couple of years and a couple of IP projects to go. Meanwhile I'm keeping my eye on the comm market and learning as much as I can. I agree that it is far less stressful than resi, and definitely the way to go.
Congrats on your achievements...so cool!
Sorry to hear your MB didn't turn up. I've just had a few meetings with mine, and she's awesome....seems to have the banks in the palm of her hand. Just got me some great refinancing where we've ditched the LMI-lodoc-nodoc loans, and got cheaper fixed-interest rates. So the opportunities are still out there. (Saving me $20K in the first year alone.) Happy with that.
LOE is my goal too. Just a couple of years and a couple of IP projects to go. Meanwhile I'm keeping my eye on the comm market and learning as much as I can. I agree that it is far less stressful than resi, and definitely the way to go.
Congrats on your achievements...so cool!
Jeez, did you explain much about your situation Daz? If I was a MB and got a call from the likes of yourself, I'd be salavting and knocking your door down!
Jeez, did you explain much about your situation Daz? If I was a MB and got a call from the likes of yourself, I'd be salavting and knocking your door down!
I don't know whether MB's make too much commission on refinancing. It's mostly new loans that are the bread and butter to them.
But yes the prospect of Dazz giving her more work then shes ever dreamed of should be enough to at least make her show up
But what can ya do ??
I've tried the Banks directly and they all turn their nose up at me.
I've contacted no less than 6 MB's on this forum over the past 2 years, 5 of which said they are unable to deal with me or they were into different "packages". I thought it was just money ?? (To be brutally honest though, surprisingly I'm quite difficult to deal with in a business situation.....most "normal" people think I'm a complete knob cos I don't conform to norms and standards) and the 5 weren't willing to compromise their business models and I wasn't prepared to submit to their established business models....cos they didn't use enough Vas.
The MB on this forum who did do a deal with me is now enjoying a rather large and juicy trailing commission....lucky bugger, but for this LOC/LOE nonsense I'd rather deal with a local Perth MB who I can sit down with face to face, as it's a bit more personal this time around.
Anyway, if anyone knows of a crackingly good Perth MB, givvus a hoy.
I've tried the Banks directly and they all turn their nose up at me.
I've contacted no less than 6 MB's on this forum over the past 2 years, 5 of which said they are unable to deal with me or they were into different "packages". I thought it was just money ?? (To be brutally honest though, surprisingly I'm quite difficult to deal with in a business situation.....most "normal" people think I'm a complete knob cos I don't conform to norms and standards) and the 5 weren't willing to compromise their business models and I wasn't prepared to submit to their established business models....cos they didn't use enough Vas.
The MB on this forum who did do a deal with me is now enjoying a rather large and juicy trailing commission....lucky bugger, but for this LOC/LOE nonsense I'd rather deal with a local Perth MB who I can sit down with face to face, as it's a bit more personal this time around.
Anyway, if anyone knows of a crackingly good Perth MB, givvus a hoy.
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Just read an article on the 2007 Top 100 MB's in Australia... Lists a few from WA in the top 30...
Might give you some ideas?
http://www.mortgagemagazine.com.au/pdf/07_7.12_MPA_P66_CoverStry.pdf
... Back from the rig? Checked the deodorant?
You are entering rarified atmosphere. Yes .. allow for months.
Yep..they are incredibly "systemised". While you're working you have "income" and "tax returns" ...which fits "one" of their systems.
... get used to that one !
I'm sure you'll think of a good come-back !
LL
I find this hilarious, as they don't ever have to pay the funds they borrowed back, until you decide when (or if) you even want to.
In fact your debt is an assett to allow them to write other debts.
Bank protocol is such a void. It's a question they ask without even understanding why they are asking
