[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 5:05 pm

Sounds like you are all over it.

Thanks again.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 4:34 pm

Thanks for taking the time to respond Steve.

Also noticed the signature option in “My Profile” is not editable in regards to hyperlinks and sentence spacing.

All seems to run in one line regardless of what the edited signature looks like.

Noticed Jamie M worked out how to hyperlink but he is from Canberra :)

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 5:11 am

ezzietee wrote:

I realise that their are many many lenders with much better rates, so this choice will cost me a lot of money.

You can negotiate on the advertised rate or better still get a broker to go into bat for you.

I am finding CBA are pricing competitively if asked.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 4:52 am

Follow your own advice and save the money in an offset with an interest only loan.

It has the same nett effect with the advantage of retaining the cash in you coffers and not the banks. As well as preserving the principal loan amount so when you rent it out you are minimizing your tax by offsetting the rent with interest payments on the loan.

Simple but highly effective strategy right there.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 4:10 am

Consider financing the 3rd IP at another bank to mitigate the risk that concerns you as the new bank will rely on estimates of the other 2 properties values. If you do the 3rd IP at the same bank they will have the most recent valuations on file and may require updated valuations if the LVR is over 80% and/or they have concerns on the current value?

It also has the advantage of avoiding a concentration risk by having to many properties at the same bank. This is something to be considered seriously once you go over 3 IPs in my opinion.

• This reply was modified 10 years ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 4:00 am

A “most recent comments” option would be great rather than having to go into the separate topics or am I missing something?

Thanks Steve for this excellent resource made free to all at your expense.

• This reply was modified 10 years ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

May 11, 2014 - 3:44 am

AMP will only allow 10 IPs and then no more funds available.

May be worth exploring moving a few of your AMP properties to another lender/s in order to accumulate more properties in order to avoid the serviceability ceiling later rather than sooner.

You have highlighted the two most important criteria being serviceability and security (usually in the form of equity or cash or a combination) but your other outgoings other than property mortgages will have to be factored into the serviceability equation.

• This reply was modified 10 years ago by  Colin Rice.
• This reply was modified 10 years ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 9, 2014 - 4:51 pm

Valuations are essentially channeled through two sources that the banks use, VMS & Valex, so it is likely you will have no say in who values your property when it comes to finance.

Some smaller lenders will still allow you to choose a valuer on their panel. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 9, 2014 - 1:28 pm

Rivervale is a decent suburb due to its location. Hard to say with out seeing the specific property/s and even then I would not make a specific comment due to my license and PI cover but others may comment freely. 

Perth on the up? Depends who you speak to but all the "experts" like Gavin Hegney and Damian Collins seem to think Perth is in for a good 2014.

Don't think it will grow as much as last year but my personal opinion is there is some growth to go.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 9, 2014 - 10:20 am

adriannqld wrote:

 Often what the majority of people say on the street is based on other people on the street, not those in the know.

Excellent advice and can verify from personal experience that most people have half the facts which often makes what they say not true 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 8, 2014 - 8:48 am

LOCs can be recalled at anytime as per contract, the majority any ways.

Standard loan, Interest Only with an offset definitely the way to go.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 8, 2014 - 8:44 am

For those in WA playing along you are still entitled to the FHOG  if you have IPs as long as you have never lived in any of them and you (or your live in partner) never purchased your own home before. 

Please confirm by calling the FHOG Helpline on 08 9262 1299.   

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 7, 2014 - 5:47 pm

Yep, get your finances in order first as per Richards advice or you will end up putting unnecessary pressure on yourself and the broker. 

If you don't have many debts then looks doable to me. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 7, 2014 - 5:42 pm

A simultaneous settlement (in WA) is two or more properties settling on the same day. 

Eg. Refinance from another bank and a purchase at the same time. 

Stamp duty is paid on the purchase only. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 7, 2014 - 3:49 pm

Contact an insurance broker to do some leg work on your behalf or ring around to get some quotes to compare. 

I have heard good things about Real Insurance. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 6, 2014 - 9:30 am

bla0018 wrote:

Sorry little confused I don't want to sound stupid but I purchase ip by using equity from my ppor but if I'm paying intrest only and saving in an offset I won't have much or any equity in the ppor 

Can pay down the PPOR loan  from offset savings if required but will depend on the valuation on PPOR at the time of the IP purchase how much etc. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 6, 2014 - 9:09 am

bla0018 wrote:

Thanks for the response 

so your saying to continue paying P&I and use equity to purchase future purchase? 

P&I is ok but better to go interest only with offset. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 6, 2014 - 1:07 am

Freckle wrote:

PLC wrote:

PLC wrote:

As Colin mentioned, its about supply and demand.

A simplistic and inaccurate assumption at best.

Please elaborate on what is driving growth?

Sentiment and greed?

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 5, 2014 - 2:12 pm

Get a valuation or two done on your property as it could be valued at more than you think or less.

Consider a 90% lend on both properties. Can go to 95% as I've seen it work but really needs to be in a moving market imo. or if you intend to hold for an extended period. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

February 5, 2014 - 2:06 pm

Would depend on the rest of your situation but it buying a property in a location that has had historical growth and you are not going to be worse of cash flow wise then go for it.

Definitely buy in both names 50/50 split.

First step would be to chat with an MB to see if you are even in the game and any decent one will advise you on how to get there if you are not ready which may involve paying out your debts first. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]