Not my acronym…… :)

But I am starting to wonder as I watch 10 year yields in Europe go negative etc that this is all simply a case of “mis-allocation” and that people piling into negative bond yields (and ever lower property rental yields)….because “that’s what you do”.

I’m starting to wonder if our investment dollars each month (about 10k…[Read more]

Im concerned that people are spending too much on properties and yields for the risk aren’t worth it anymore but at the same time TINA (There Is No Alternative) is forcing me to purchase yet another IP as otherwise I’m going to go cash flow positive on current LVR’s.

This said I think Australians are paying are too much for their mortgages to…[Read more]

Hi Redwood, looking to fix for as long as possible (eg have 30 years for PPOR) as helps budgeting. I also have seen over the years that Australian banks love fat profits on variable mortgages and make a much higher profit than most around the world and are happy to push up rates asap.

I’m not worried about needing to sell the next investment…[Read more]

What are peoples thoughts on a drop of 0.25% by the RBA on Tuesday?

Still looking for a better rate on a 5 year fixed and hoping the RBA might consider Brexit/Election ‘non-decision’ until Tuesday at the earliest a good enough reason to drop rates and this can get me a better than 4.49% fixed 5 year.

What are people thoughts on a drop of 0.25% by the RBA on Tuesday?

Still looking for a better rate on a 5 year fixed and hoping the RBA might consider Brexit/Election ‘non-decision’ until Tuesday at the earliest a good enough reason to drop rates and this can get me a better than 4.49% fixed 5 year.

Just woke up here in NYC to see all of the mess…..going to be an interesting day.

Lol does this mean Shorten is getting the nod on the 2nd of July and Trump in November….?

Thanks guys, my preference is always going to be for 5 years and understand it may cost for that “comfort level” (I just don’t trust Australian bank variable rates….and the fat dividends that go with Australian bank shares).

I agree though @Corey the 0.7% difference on a $500k adds up at $3500pa however I think in 2019….just as rates start…[Read more]

There is a way to list on realestate.com.au through propertynow.com.au

Basically they provide a “front end” eg phone/email etc as well as being able to get you onto the listing sites.

My advice is go for it.

Here in NYC a lot of people are doing it through streeteasy, just don’t skimp on preparations eg, declutter/pro photographer/floorplan…[Read more]

@Corey, do you know if there are any rules within APRA that ownership says the percentages for risk etc have to be “amalgamated” eg it might make a lot of sense for them to continue to be two separate entities.

We’ll just have to agree to disagree that this is/isn’t a problem. :)

I do however have a “right now” particular problem with St George because they’ve cut off expats to the Portfolio Loan product so will need to find a new lender to borrow a <70%LVR IP IO 5 year fixed of around $490,000 (the other $210k coming from cash/variable LOC), that are…[Read more]

We’ll just have to agree to disagree that this is/isn’t a problem.

I do however have a “right now” particular problem with St George because they’ve cut off expats to the Portfolio Loan product so will need to find a new lender to borrow a <70%LVR IP IO 5 year fixed of around $490,000 (the other $210k coming from cash/variable LOC), that are open…[Read more]

No the break fee is only for the fixed loans, I’ve got one fixed until Dec 2017 and one until Aug 2020.

I could move the variable but would need to keep the overall portfolio to less than 70% eg if I move out one of the properties I then have to reduce the overall portfolio limit by a corresponding amount.

That’s why I was asking terry about…[Read more]

Cool, thanks for the clarification, I appreciate you have way more experience in the space than my wife and I do so appreciate the clarification.

I can if I want refinance all of the properties (eg example 2) but would involve paying a break fee for the fixed loans…..and would prefer not to do that.

Our plan is to leave them in place, draw…[Read more]

Keep in mind I could understand that if you had a variable loan….you could just pay it out and walk away to another bank and secure the additional equity increase, but for my purposes I feel more comfortable structuring debt over a longer term, particularly in Australia where the banks are fat and happy and secure really wide spreads.

The…[Read more]

Hi Terry,

Sure….but when the bank that secures your $400,000 loan says….sorry but we aren’t lending you any more money on a property that they already have a mortgage on….? then what?

eg you are in the same situation as I am for the St George Portfolio loan…..

Surely you aren’t suggesting a secondary mortgage right? eg a bank to take…[Read more]

Yes DT but accessing the equity was more important to me, the whole reason why the Portfolio Loan idea works (lol when it works) is that each time you can automatically use the equity from the previous 12 months and buy another property.

So basically your advice is….take out a standalone loan with a vendor that is fixed for the next 5…[Read more]

lol nothing if its a cat…..out to the woodshed for a whooping if its something else :)

good to see you can joke about the situation. good luck with your decision, be sure to circle back and post how it all works out in 6-9 months once the solicitors have finished dueling it all out.

Yep Richard, that was the whole point of signing up with the Portfolio Loan platform in the first place eg to be able to be able to get the equity recognized and borrow more.

The current plan is to secure through a different lender – 5 year fixed I/O <70%LVR – as a separate standalone loan, the annoying part is will tie up any equity in that…[Read more]