Hi guys,
I am a newbie at somersoft forum and so thrilled to see so many people sharing their knowledge, experience and motivation here.
I have always been interested in properties and at this stage have two properties; one is PPOR and second one is IP in Brisbane
I have a few questions and can’t seem to figure them out on my own. So I would appreciate your suggestions
Given that interest rates so low I am contemplating to refinance my loans. To give you an idea about my situation, here are the figures
Question 1
PPOR
Loan Amount $400,000 from ANZ
Recent valuation $475,000
Remaining loan amount is $390,000
Breaking Cost $9000
Fixed portion is $250,000 and variable is $140,000; the average IR is about 7%
So the question is, I am not sure whether I should refinance my home loan or not AND if I should what is the better option total fixed or total variable? I am not sure if I am going to keep this property for long time as we want to buy a bigger house or rather sell this one and buy another property with better prospects for future (for CG or with LMR status) !!
Question 2
IP
Loan Amount $430,000 from ANZ
Expected valuation $475,000
Remaining loan amount is $418,000
Breaking Cost $13,000
Fixed for another 2 years at 8.39%
We are currently getting $560 rent per week so if we fix it at 7.1% or 7.2%, the property becomes almost neutral gear for 5 years (but it is effective only if we fix it for 5 years, otherwise the breaking cost is too much and will neutralize the low IR). So should we fixed it or make it variable and hope the interest rates don’t go high in the next 3-4 years !! What is your opinion
Question 3
What do think about cross-collateralising these properties (as we are in negotiating with NAB and the guy was pushing for it). Also, we just got an email from the NAB guy and he won’t tell us the valuation we got for the properties. He is giving us the amount for the LMI and saying that he can’t disclose the valuation, as we didn’t pay for it so the bank reserves the right not to tell us the valuations.
Is it normal or I am getting my BP high for no reason. I have never heard such thing!! Has anyone dealt with NAB before, they look very doggy and unfriendly to me?
Question 4
Can anyone recommend any good broker they have dealt with in the past who is effective in getting good deals and is professional in his conduct? We will be investing heavily in Real Estate in near future so would like to form a good team to do things efficiently.
I know I have asked a lot o questions But I do hope to get replies as I need some second opinions from people who have/are dealing in the same situation.
If there is any info I have missed to mention plz let me know.
Thanks in advance.
Cheers
Micky
I am a newbie at somersoft forum and so thrilled to see so many people sharing their knowledge, experience and motivation here.
I have always been interested in properties and at this stage have two properties; one is PPOR and second one is IP in Brisbane
I have a few questions and can’t seem to figure them out on my own. So I would appreciate your suggestions
Given that interest rates so low I am contemplating to refinance my loans. To give you an idea about my situation, here are the figures
Question 1
PPOR
Loan Amount $400,000 from ANZ
Recent valuation $475,000
Remaining loan amount is $390,000
Breaking Cost $9000
Fixed portion is $250,000 and variable is $140,000; the average IR is about 7%
So the question is, I am not sure whether I should refinance my home loan or not AND if I should what is the better option total fixed or total variable? I am not sure if I am going to keep this property for long time as we want to buy a bigger house or rather sell this one and buy another property with better prospects for future (for CG or with LMR status) !!
Question 2
IP
Loan Amount $430,000 from ANZ
Expected valuation $475,000
Remaining loan amount is $418,000
Breaking Cost $13,000
Fixed for another 2 years at 8.39%
We are currently getting $560 rent per week so if we fix it at 7.1% or 7.2%, the property becomes almost neutral gear for 5 years (but it is effective only if we fix it for 5 years, otherwise the breaking cost is too much and will neutralize the low IR). So should we fixed it or make it variable and hope the interest rates don’t go high in the next 3-4 years !! What is your opinion
Question 3
What do think about cross-collateralising these properties (as we are in negotiating with NAB and the guy was pushing for it). Also, we just got an email from the NAB guy and he won’t tell us the valuation we got for the properties. He is giving us the amount for the LMI and saying that he can’t disclose the valuation, as we didn’t pay for it so the bank reserves the right not to tell us the valuations.
Is it normal or I am getting my BP high for no reason. I have never heard such thing!! Has anyone dealt with NAB before, they look very doggy and unfriendly to me?
Question 4
Can anyone recommend any good broker they have dealt with in the past who is effective in getting good deals and is professional in his conduct? We will be investing heavily in Real Estate in near future so would like to form a good team to do things efficiently.
I know I have asked a lot o questions But I do hope to get replies as I need some second opinions from people who have/are dealing in the same situation.
If there is any info I have missed to mention plz let me know.
Thanks in advance.
Cheers
Micky