new investers seeking advice

Hi

          As we are reasonbly new to the property market we are seeking some advice. We purchased 2 properties 12 months ago for an average of $345k,which at that time we had the 1st house returning $450 p/w, which we now have that returning $675 p/w. The other house was returning $380,we now have that returning $920 p/w. The problem that we are stiking is that we are looking to purchase another house near by only to have the banks saying NO. They are telling us to sit on what we have and see how things are travelling after the end of the financial year. Can anyone one give us some advice on who to try for finances. Also we have been warned against purchasing more in case of interest rates rising and as well as what's going on in the us.

                                     Your input would be much appreciated

                                                                                            Shaun Fitzpatrick 

Hi Shaun

There are many questions to answer  am not sure of your entire situation.  This seems wrong as you have plenty of serviceability.  There are many questions.  Are you with one lender and are your properties secured by each other or stand alone.  What is your work situation and income?  Are your full time employed, part time, self employed etc. 
You hear a lot of doom and gloom as far as the market is concerned.  The sub prime market in the US is a far cry from our market and only .4% of loans in Australia are in default and most of them are in western sydney.  The US market is totally different and the issue now is for som our lenders to buy money at a decent rate to sell to the Australian market.  The situation has not greatly effected the large lenders and in fact most are busier now than before.  Serious and savvy investors don't get too pre occupied about what may happen with rate as they know there are tax benefits and some good buys can be had.  Where it hurts is families on lower income who are presently just paying their mortgages.
Hope that helps
Peter Gwynne
pgwynne@investorfinance.com.au
0423 028 239

HI Shaun

It seems your bank no longer wants to work with you. Time to look form those that do. Very likely the person that told you to sit tight and do nothing has no property and can only dream about the returns you are getting from your properties.  Do not let them slow you down.

Keep it up mate, the returns you are getting are awesome,

Happy Investing

Jon Salvador
http://www.headinghome.com.au
"For investors...from investors"

Jon,
you beat me to it!
Time to move banks I think.
Currently doing the same. Feels good to give an unco-operative crowd the ar$e.

Cheers,
Marc.
erardent@hotmail.com

"we get sent lemons; it's up to us to make lemonade"
www.whydoislice.com - for all the golfers out there!

Firstly, shop around for a new financier - take into account any costs for break fees etc for changing from your current lender.
Secondly, make sure that the new bank has a personal lender/business banking section who you will deal with not the grunt from the back office.
Thirdly, check your capacity to pay for the next property, include projected cashflow from all 3 properties and compare with current situation.

Thankyou to everyone for your comments and guidance.

                                                                                    Shaun Fitzpatrick

Shaun firstly welcome to the forum.

I hope you enjoy your time here.

Interesting that you Bank are now offering Financial Advice.

They have no right to tell you what you can and cannot do merely whether they will lend to you what you require.

The market is full of competition and I think I weould be seeing what is out there in the way of Financial choice.

I would need a few more details to give you some concise information but safe to say if they dont want your business many lenders will be glad to have you on board as a client. 

Just be careful how you structure any future financing.

Cheers

Yours in Finance
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
www.tayloredfinancialsolutions.com.au
richard@tayloredfinancialsolutions.com.au.
Lodoc loans from 8.63%

Shaun

I've just refinanced all of my loans because my bank constantly made it hard for me.  I had over 10 loans and stupid me, didn't realise that they were cross collatirised.  It cost me over $20,000 but was well worth it because my broker was able to get 2 deals over the line for me.  If I stayed in the same bank,  I wouldn't have made the $50,000 which I think that I've so far made.

The bank was one of the big four and must say that the manager bent over backwards to help me. However, in the end, I'd had enough because they kept on saying "rules have to be followed".  I tried to reason with them that I had the capacity to pay but they kept on ignoring my pleas. 

Hi Shawn

Hope you got my message i left for you.

Tried to call you again yesterday but got your answering machine so guessed you were busy.

Feel free to shoot me an email or Private message over Xmas and I can come back to you with some ideas.

Cheers

Yours in Finance
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
www.tayloredfinancialsolutions.com.au
richard@tayloredfinancialsolutions.com.au.
Lodoc loans from 8.63%

Hi
We recently had a similar problem so we decided to refinance. We approached a couple mortgage brokers, explained our situation and ended up with a non-bank lender.  Not sure of your financial situation but we ended up getting a low doc loan rather than the standard full doc we previously had.  You need to discuss your own financial situation with a broker, I found this much easier as they know which institutions will be suited to your individual situation.

Simmy