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Also this might go hand in hand with another question- Does anyone know of a reputable Mortgage Broker in the Adelaide region?
Thanks,
Knox.
Contact Corey Batt of XL Financials http://www.xlfinancial.com.au/
You’re in good hands with Corey. Give him a call, he’ll be happy to help.PHP | Mortgage Station Pty Ltd
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Hey tukchen,
I personally have not used or have not even researched anything about any of these groups. From memory though, Bhatla has a really bad reputation and was talked about before. I have not heard anything anymore since then from this group.
Are you looking at OTP properties? Or newly established properties? Make sure you do your due diligence when considering OTP properties. Its generally a bad investment but there are a few stories stating that they are happy with OTP purchase as it suited their strategy at the time.
PHP | Mortgage Station Pty Ltd
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Wiwin – if im not mistaken, what you have said is what I also believe is right. whoever is on the title, whether it be an individual, a jv, a company or trust, should be the same on the mortgage.
I think what Terry is pertaining to are mortgage applications for a married couple. Whereas the husband or the wife can be on the title alone, and he will apply for the mortgage but you can use the spouse as a support in the loan application.
So the main loan applicant for this example is the husband but the lender will also consider the spouse income as a supporting income and this can increase borrowing cap.PHP | Mortgage Station Pty Ltd
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Hi Walk,
I apologise for the rather generalised response.
Increasing income streams could be one or a combination of these things, I just don’t know if you can consider this creative though:*Focus on cashflow positive properties, lenders take rental income into consideration when determining your borrowing power.
*Connected to point 1, avoid heavily negative geared properties, the short fall for each negatively geared prop affects your serviceability.
*Balance your portfolio, some people get two positively geared IP for every 1 negatively geared IP. this will sort of balance the portfolio.
*As mentioned above, if at all possible, focus on +cashflow IPs for now so you will have a few income streams helping you paydown your PPOR.Hitting the financial brick wall can be and should be avoided by planning ahead. make sure you discuss this with your finance person as what you have mentioned already, this will put heavy brakes on your accumulation phase early on in the game.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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regarding borrowing power, this varies from different lenders as each lender assess your borrowing capacity base on their lending policies which again, could be unique to each lender. they need to verify that you can service a loan so this is directly connected to incomes. unfortunately, I can’t answer your question in specific detail without knowing your financial situation. Some lenders have strict policies and some are not that strict so therefore the order of lenders needs to be considered in structuring your loans.
For a “clever way” to get your borrowing power back up: increase your income stream.
PHP | Mortgage Station Pty Ltd
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@simondema – are you looking at new houses?
@wiwin – if its an internal refinance, most lenders don’t charge any fee. There really is not much benefit holding on to x-coll loans for a long period. he’s actually in a dangerous position now, if all goes south all of a sudden, he could potentially lose one if now all of the crossed properties.
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This reply was modified 9 years, 5 months ago by
PHP.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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Hey Sam,
Give Richard Taylor or JacM a call.. They specialized in the QLD area if Im not mistaken. Search them up here.
Or knightm from precium.com.au for NSW.Richard Taylor
JacM
knightmCheers!
PHP | Mortgage Station Pty Ltd
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Hey Walkingtorun,
First, welcome to the forums!! Im sure you will learn a lot from here. :D
Regarding your situation, it is best to talk to your mortgage broker first regarding the borrowing capacity. They can tell you exactly how much you can afford, and how to structure your loans correctly that will suit your goals. This should be your first stop before looking at properties, no point searching around re.com.au for properties around $600k if you can only afford $400k. With your income alone and no other debt, serviceability won’t be an issue.
Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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Having said that. It will still come down to how good your money handling habits are. In some cases, it is actually better for an individual to pay P&I than having it IO + Offset due to bad money habits. As soon as they see money in the bank, they spend it on wants not needs.
PHP | Mortgage Station Pty Ltd
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Hey Knox,
*What the pros/cons are of interest only and offset accounts are
If for an investment loan:
– con = you will only be paying the interest portion of the loan and after the loan term, you still owe the bank the same amount.
– pros = you will only be paying the interest portion of the loan and effectively maximizing your tax deductible debt. having an offset account link to the loan will reduce the interest paid depending on the amount in the offset account that is offsetting the loan. In I/O, the interest is calculated daily and charged monthly. With this setup, you have the flexibility of paying the principal loan (via parking in offset) in any amount you want and is not dictated by the bank, you have control over this. You also have the freedom to pull it out anytime you need it for succeeding purchases.*Why I would pay only the interest off of the mortgage?
If for investment:
– you are maximising the tax deductible debt by just paying the interest therefore you will get max tax benefit. This also free up cashflow as you will be paying less each time as oppose to P&I. So you can save up much quicker.*Is combining an interest only loan with an offset account more beneficial than a principal and interest loan with an offset, for investing?
Yes. It is more beneficial to have IO + 100% offset OR IO for IP loan and Offset link to non tax deductible loan (PPOR, your home loan)Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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@wiwin tell your friend to be very careful and review his financial situation. its more likely that his loans are crossed at 105% lend. please advise your friend to uncross his properties.
@simondema
Campbelltown and most especially the surrounding suburb is going through gentrification. new developments are still ongoing in the area. for that budget, you are better off looking at houses than units mainly due to the demographics of the area. if you really want to invest in units as per your strategy, I suggest looking at lower priced units in the area as this gives you the same rental return as you wanted. Try ringing some real estate agents in the area and ask what sort of properties are in demand in terms of rentals.PHP | Mortgage Station Pty Ltd
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He is wanting to know if something like a Lease-option, wrap, or something else can work in his situation.
Sorry Benny. I meant to ask about this. Is the landlord keen to sell with these conditions? e.g. Vendor finance/rent to own, do wraps or lease options etc. I mean its not a bad i guess to try and negotiate with the landlord with these options if he really wants that property.
PHP | Mortgage Station Pty Ltd
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Hi Benny,
Without knowing the numbers, like his income for servicing purposes, he still have hope. Give Richard Taylor’s details to him as I know Richard do 100% finance option. Its just a matter of knowing if Peter can service it or not.
Is the landlord keen on selling the property though? People without deposit can be assisted using 100% finance. Give Richard a call or send him an email so he can explain this to you clearly.
Cheers!
PHP | Mortgage Station Pty Ltd
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This group has been mentioned and discussed here before. Do a search and you will see. In case you can’t find it, here’s a start.
https://www.propertyinvesting.com/topic/4995222-new-investors-yale-property-solutions/
“Caveat Emptor”
Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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Hi Wiwin,
A quick primer on average and median – average is derived from all sold prices added up and divided by number of properties. Averages can be skewed if sales are heavy (say) at the top end. e.g. imagine a suburb that has 5 houses sell last month – 2 at $250k, 1 at 300k, 1 at $400k, and 1 at $600k. Total is $1,800k – divide that by 5 (number sold) and the average is $360k.The median price for that group is simply the middle property price in the group. Thus, the median is $300k. Of course, most suburbs will have a larger number of sales than just 5 – but it shows you HOW it happens.
Some investors say “Buy below Meidan price”. This gives you the best chance of adding value – whether by reno, good bargaining, or whatever. Lower priced properties are affordable to more renters, thus increasing your market.
Benny
This would be my answer too regarding the Median VS Average question. Thanks Benny for the quick follow up!
PHP | Mortgage Station Pty Ltd
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I agree with Benny. The numbers doesn’t add up properly. If you give us more details, we can surely show you how its calculated.
Regarding a 1 bedder unit for 320k? Don’t you think its a bit overpriced? Your target market is very limited with 1 bedder.
What’s your due diligence telling you about this property? Have you confirmed the rent at $320k a week?PHP | Mortgage Station Pty Ltd
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Brm,
You are in very good hands with Jamie.
Cheers!
PHP | Mortgage Station Pty Ltd
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In a nutshell, its basically setting it up as having the following:
Loan 1 for Property A (Property A as security to Loan 1)
Loan 2 for Property B (Property B as security to Loan 2)
Linking an offset account to the non tax deductible debt is a must. Regarding the costings for these, it depends on a few things so best to give us more details so we can help you out even further.
They will probably set you up with two online banking login but if its with the same lender, you can probably ask them to get them all under one login account for ease of access.
PHP | Mortgage Station Pty Ltd
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Hey brmiau,
Cross Collaterising is basically giving more of your asset to the bank as security than what they deserve. You are giving them control over all the assets that is X-coll with them. If you want I can forward you an article written by my fellow mortgage broker about x-coll. It will tell you what you need to know regarding this method. Just shoot me an email and I will forward it to you.
PHP | Mortgage Station Pty Ltd
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Hey Bobby,
You’ve got the basic set up down really well.
Do you plan to buy more properties after this purchase?
Or are you just buying this PPOR now and then 8 years later get another as PPOR and convert this to IP so in 8 years time you are only looking at two properties is this correct? What is your goal? Why do you want to invest in properties?As each person’s circumstances is different, so as their goal. Some would like to acquire 20+ properties and some would only focus on 3 or less. Determine your goal and work backwards from there.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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This reply was modified 9 years, 5 months ago by
