Dom

A few comments,

You have forgotten to list your existing rent, assuming you are getting a 5% yield, this would be about $615/wk (this may be too generous?).

You should be able to service a new loan of about $290,000. If you did not have children, the figure would jump to about $360,000.

If you could borrow the required amount, as your deposit is not enough to get a 95% loan and pay costs, you would need to either increase your LOC if possible or cross securitise with one or more of your other properties. To cross securitise you would have to use the same lender.

These are just some quick and rough figures for you to look at.

Terryw
Discover Home Loans
North Sydney
[email protected]

Personally, I would never fix any of my loans again after being stung with high exit fees recently.

Circumstances change and 15 years is a bloddy long time. What happens if you want to sell the property? or move the loan to another bank with better lending criteria to withdraw equity etc. You could be hit with very high break costs.

Terryw
Discover Home Loans
North Sydney
[email protected]

Some banks allow a valuation from one of their panel valuers to be reassigned to them (eg Bankwest). So you could find out who is on their panel for your area, order the valuation youself and then if it is an acceptable amount you can proceed with the loan application and ask the valuer to re-assign the valuation to the bank. They will charge another fee for this (up to about $150). You may also be charged a slightly higher amount for the valuation as the banks get a discount for high volume.

Terryw
Discover Home Loans
North Sydney
[email protected]

Why not post the offer directly to the owners and just bypass the agent. And/or ring the owners and tell them the agent is not putting offers to them.

Terryw
Discover Home Loans
North Sydney
[email protected]

It is probably best to start with a few in your individual names. You may not go any further than this. If you later decide you are serious, then you could go to the expense of setting up a trust. But all the cashflow from the intial properties will not be able to be diverted to the trust without you selling to the trust and this could mean stamp duty and CGT issues.

Incidentally, you can set up a trust for as little as $135 plus stamp duty. see http://www2.cleardocs.com/

Terryw
Discover Home Loans
North Sydney
[email protected]

Yesfella,

I would also be interested in hearing more about how you structure your deals.

Terryw
Discover Home Loans
North Sydney
[email protected]

It may not be a mortagee sale. These usually go to auction. It maybe the agent just made an intention ‘slip’ just to suck your in and get your attention.

Terryw
Discover Home Loans
North Sydney
[email protected]

I was speaking to my accountant last week and he said one of his clients formerly owned a pub. They had just sold it recently and they received a call form the new owner who was very happy as it was taking much more than expected. The accountant asked him for a few numbers and they compared takings to previous years. It seems it was suddenly taking an extra $10,000 per week approx with the new owners who were actually working in and running the pub, compared tot he old owner who was not working there and had it managed. It seems the previous management was probably skimming the till of about $10,000 per week!

Terryw
Discover Home Loans
North Sydney
[email protected]

I have used a few different insurance companies, CGU, Combank, and Westpac. I think they all give multiple policy discounts, but there ain’t much difference in the charges between them all. I’ve also used an insruance broker, but don’t think it is worth it with the fees they charge.

Terryw
Discover Home Loans
North Sydney
[email protected]

BTW, there are solicitors that can help with the removal of defaults etc from the credit record. If the defaulter has not followed the letter of the law when making the listing, they can be sued. Often the threat of legal action is enough to get them to remove the entry.

Terryw
Discover Home Loans
North Sydney
[email protected]