Take the money and RUN!!!

Wow.. You were talking about this issue back in Jan. I simply ignored it at that time. Excellent market knowledge Redom!
 
Thank you for this helpful information - my partner and I have found it increasingly challenging to get IP loans as our portfolio expanded during an aggressive five year acquisition period - will keep this information in mind
 
Yes what a great thread/call it turned out to be.

So what is the general feeling/consensus on purchasing atm? Should people currently looking to buy hold off any immediate thoughts of purchasing in the hope of less competition and a softening of prices in the months to come?
 
Brilliant and very relevant post Redom.
I must say in the short time you have been on these forums, you have really proven yourself to be ahead of the game and very willing to share your knowledge and expertise, a huge kudos to you.
Keep up the good work!
 
Yes what a great thread/call it turned out to be.

So what is the general feeling/consensus on purchasing atm? Should people currently looking to buy hold off any immediate thoughts of purchasing in the hope of less competition and a softening of prices in the months to come?

I'm not sure there'll be an immediate slowdown, at least in most markets. Sydney is the main target for these changes and its likely to have the most effect on their market given the growth has been driven largely by investor activity.
 
Brilliant and very relevant post Redom.
I must say in the short time you have been on these forums, you have really proven yourself to be ahead of the game and very willing to share your knowledge and expertise, a huge kudos to you.
Keep up the good work!

With your comment... made me do a second look. Wow. Redom has only been on the forum for less than a year but feels like he's been around forever with his knowledge. Kudos from me too.
 
Excluding some of the non-banks from the equation, this could mean that investors have only two weeks to 'take your money' out. The following circumstances are most urgent:

1. Equity releases:

I did read your post few months ago, and have decided to heed the warning. I just completed the reno and contacted my broker to order a valuation (now waiting for valuator to call me to schedule a time).

You think I might have just missed the 'deadline'? What are the implications? :( With ANZ.
 
I got my last purchase in literally 2 days before they announced this. My heart skipped a beat.

But I'm not totally in the clear, I still have another 1 refinance and 2 equity releases that I plan on doing. I wish I could go back in time 3 months.
 
I've managed to extend the IO period of a number of my investment loans. 2 loans from 5 to 10 years, 1 loan from 2 to 4 years. All with ANZ and I did not need new applications. He said that if I need new applications (to extend my IO period from 4 to 10 years), I may not get the interest rate I wanted.

I have taken cash out of equity and is sitting in the offset and waiting for new opportunities. Ironically Sydney just gone another leg up and if I get my house revalued I may get even more cash out. But then there are interest rate implications.
 
I did read your post few months ago, and have decided to heed the warning. I just completed the reno and contacted my broker to order a valuation (now waiting for valuator to call me to schedule a time).

You think I might have just missed the 'deadline'? What are the implications? :( With ANZ.

ANZ's serviceability was always quite conservative, i haven't heard about them making changes to it. Your equity release procedure should be OK as the changes i was talking about with that post was in reference to the more generous lender calculators being brought back in line towards something similar to ANZ's.

Cheers,
Redom
 
ANZ's serviceability was always quite conservative, i haven't heard about them making changes to it. Your equity release procedure should be OK as the changes i was talking about with that post was in reference to the more generous lender calculators being brought back in line towards something similar to ANZ's.

Cheers,
Redom

Much appreciated for the reassurance
 
Macquarie changes confirmed from Monday. Using a buffered OFI mortgage debt approach - which makes their serviceability calculator from one of the most generous to something similar to where everyone else is for investors with large debt holdings.

All applications with them will need to be submitted within the next 24 hours to be assessed at current policy - not very long.

Cheers,
Redom
 
Macquarie changes confirmed from Monday. Using a buffered OFI mortgage debt approach - which makes their serviceability calculator from one of the most generous to something similar to where everyone else is for investors with large debt holdings.

All applications with them will need to be submitted within the next 24 hours to be assessed at current policy - not very long.

Cheers,
Redom

What's OFI?
 
What's OFI?

Other Financial Institution.

It means that any mortgage debt you have will be assessed at 7% P&I over 30 year terms.

They used to take actual repayments on your debts held with other banks. This fact meant that you could switch to Macquarie down the track after borrowing as much as possible from other banks and continue your borrowing. No more of that with Macq.

Cheers,
Redom
 
Other Financial Institution.

It means that any mortgage debt you have will be assessed at 7% P&I over 30 year terms.

They used to take actual repayments on your debts held with other banks. This fact meant that you could switch to Macquarie down the track after borrowing as much as possible from other banks and continue your borrowing. No more of that with Macq.

Cheers,
Redom

Thanks.

I have 5 loans with 4 banks. I think most of my debt is with Macquarie so this should soften the blow when it comes to equity releases but still not good...:(
 
Macquarie changes confirmed from Monday. Using a buffered OFI mortgage debt approach - which makes their serviceability calculator from one of the most generous to something similar to where everyone else is for investors with large debt holdings.

All applications with them will need to be submitted within the next 24 hours to be assessed at current policy - not very long.

Cheers,
Redom

Oh no!!!
I hope I can still buy the next one!
 
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