Woot. Just got accepted for LOC

[eggnog]

With all the talk of Doom and Gloom I thought I might post some rays of sunshine.

Just accepted offer yesterday for LOC at 85% LVR IR @ 8.16%. It's nothing much (~24k) but considering i've only had the property just over a year I think its quite good appreciation in these times So yep, credit is still out there, the world still goes around and the sun will still rise tomorow.

 

[Alex P Keaton]

Its a good feeling isnt it! On friday night I signed for my 1st mortgage.

 

[jingo]

With all the talk of Doom and Gloom I thought I might post some rays of sunshine.

Just accepted offer yesterday for LOC at 85% LVR IR @ 8.16%. It's nothing much (~24k) but considering i've only had the property just over a year I think its quite good appreciation in these times So yep, credit is still out there, the world still goes around and the sun will still rise tomorow.

Good work cashflowplus. Locking in a LOC is a good move - gives that feeling of safety should you need to use it for an investment related emergency.

I agree there is still credit available. The media is presenting one side of the story only. Had a good chat to my wife today who works in finance. They are busier than ever before. (My wife has been working in finance since before the last boom - 1997 and says now is much busier even than then!) I can't understand why with all this doom and gloom around. Many many many FHB's now entering the market. Credit is readily available for residential purchases at this time....

 

[sue78]

which bank? well done!

 

[Ridin-High]

With all the talk of Doom and Gloom I thought I might post some rays of sunshine.

Just accepted offer yesterday for LOC at 85% LVR IR @ 8.16%. It's nothing much (~24k) but considering i've only had the property just over a year I think its quite good appreciation in these times So yep, credit is still out there, the world still goes around and the sun will still rise tomorow.

Did it cost anything to set up a LOC? I could only presume a fee for a re-valuation of the security (property) that backs it.

Cheers

RH

 

[eggnog]

bank was Westpac.

No fees or anything. Although I had to talk to a few different home loans managers at different westpac branches to get this offer. Amazing how much difference there is between branches. First manager I saw only allowed upto 80% LVR re-finance, would charge circa $600 for valuation and had a minimum $20k limit setup. Kinda pissed me off so went shopping and it paid off.

Now to go buy me my first ever car as a reward

 

[Bushy]

Cashflow,
sorry to here that you are buying a liability from the produce of an asset.

A good rule that I stick to is
Use borrowed money to buy assets, there value increases before you pay it off.
Use cash to buy liabilities, their value decreases while you save to buy it.

You obviously have a good reason though

Cheers Bushy

 

[voigtstr]

bank was Westpac.

No fees or anything. Although I had to talk to a few different home loans managers at different westpac branches to get this offer. Amazing how much difference there is between branches. First manager I saw only allowed upto 80% LVR re-finance, would charge circa $600 for valuation and had a minimum $20k limit setup. Kinda pissed me off so went shopping and it paid off.

Now to go buy me my first ever car as a reward

I hope the smiley face is because you were joking re getting a car. If the smiley face is because you are happy you are getting a car, then be advised that the interest on the LOC won't be deductable. For non appreciating assets (like cars, big tvs etc) its best to simply save up (perhaps in INGdirect or something similar). The best use of that LOC would be to put towards another property, or managed funds.

Cheers
the voigtstr
p.s this is general advice, please seek your own advice from professionals.

 

[devo76]

My LOC for just under $100,000 has also been approved by westpac. No hassles at all. I had my house revalued as part of the approval. Value has not changes in 18 months which i actually thought was good. They also approved me for a additional $480,000 but i think i will be getting the funds for my next property from another lender. That seems to be the way to do it.

 

[Rolf Latham]

Hiya CFP

It only goesto show how poorly the mono product guys like WBC understand their own product offering, got nothing to do with "deals "

85 % no lmi refi was an off the shelf product with no fees for clients on pro pack.

85 % no lmi purchase still IS

ta
rolf

 

[Rolf Latham]

Hey Guys

i think u missed what CFP said


FIRST car............hasnt had one previously so very much focussed on the good debt b4 the bad debt.

ta
rolf

 

[eggnog]

LOL Rolph. You just had to go and deflate my balloon It's all good though mate, at least I didn't get suckered into 80% at higher IR and out of pocket costs. hhhmmmm, maybe I should use a broker like you next time, although its good for the learning experience to do some personal legwork.


100k LOC only just started but i'll get there one day

 

[eggnog]

Yep Rolph got it. Got teased quite a bit when unlike my friends they bought cars while I decided to buy a house first. Now gonna go reward myself for my dedication, sacrifice and hard work/learning now that i've got one foot in the door. Gota enjoy life every now and then guys.

 

[nonrecourse]

Here today gone tomorrow

Yep Rolph got it. Got teased quite a bit when unlike my friends they bought cars while I decided to buy a house first. Now gonna go reward myself for my dedication, sacrifice and hard work/learning now that i've got one foot in the door. Gota enjoy life every now and then guys.

Tell us your joking Your buying a doodad (car) and your using your equity via a LOC on your investment property? Its cheaper than a personal loan right... wrong if your naive enough to mix your personal borrowings with your deductable borrowings then you are more likely not to pay off the car anytime soon and over time the interest will accumulate.

 

[Ridin-High]

Tell us your joking Your buying a doodad (car) and your using your equity via a LOC on your investment property? Its cheaper than a personal loan right... wrong if your naive enough to mix your personal borrowings with your deductable borrowings then you are more likely not to pay off the car anytime soon and over time the interest will accumulate.

Someone feel free to jump in if im wrong (still learning about LOC) but if you obtain one with a split facility you could use one of them for investing (interest tax deducable) and one for personal (non deduc).

Then from their he could instead of putting money into offset or whatever, he could put additional savings into the LOC for personal use and knock that out of the way asap.

Cheers,

RH