Total Members: 153,367

wan0151

  • wan0151 replied to the topic Purchasing multiple properties in the forum Finance 4 weeks ago

    Thanks Terry!

    Is there no way for me to setup a company and be the guarantor instead of the borrower once I’ve maxed out? Is the only choice to sell my IPs?

  • Hey everyone,

    I currently own two IPs,

    PPOR: Bought for $580k in 2011, now worth $1.6 mil, owing $160k, P&I

    IP 1: Bought for $520k in 2017, now worth 700k, owing $520k, interest only (100% LVR), cash-flow positive

    IP 2: Bought for $600k in 2019, now worth 700k, owing $600k, interest only (100% LVR), cash-flow positive

    Annual working salary…[Read more]

  • I think you could go for a low doc loan, no doc loan are pretty much non-existent

  • wan0151 replied to the topic Lending leniency in the forum Finance 1 month ago

    Do low doc loans still take into account consistent income? I’ve currently reached my borrowing cap by burrowing $650k (the full value of the property) for an IP purchase and I heard it’s possible to purchase more property through low doc loans as long as a 20% deposit is being put down. Is this possible?

  • wan0151 replied to the topic Lending leniency in the forum Finance 1 month ago

    Yeah I get that but will the banks view that as a $500k loan total for serviceability? $130k loan for deposit/stamp duty and $370k loan to secure the property? In that case burrowing the full amount being $500k and not putting a deposit down will have no difference on serviceability.

  • wan0151 replied to the topic Loan serviceability in the forum Finance 1 month ago

    Won’t that drastically increase the monthly repayments though?

  • wan0151 replied to the topic Lending leniency in the forum Finance 1 month ago

    What if the deposit is being supplied by an equity home loan? For a $500k property for eg, a home equity loan of $130k is used to settle the deposit, stamp duty and associated closing costs.

  • wan0151 replied to the topic Lending leniency in the forum Finance 1 month ago

    Hey Terry,

    If you put down a deposit (5/10/20%) for an investment property instead of burrowing the full amount, are lenders more willing to let you burrow more for IP purchases?

  • wan0151 replied to the topic Loan serviceability in the forum Finance 1 month ago

    Hey Terry,

    Thanks for the information. In regard to your last point, what would be the possible ways of extending it?

  • wan0151 started the topic Loan serviceability in the forum Finance 1 month ago

    Hey everyone,

    If I earn $150k a year, have a $300k mortgage and I purchase an investment property for $500k which gives around $2000 a month in rent, do the banks consider my annual income as $174k? Would they also count any depreciation claimed on the property and any tax claims on the tax deductible investment loan towards my annual salary? If…[Read more]

  • wan0151 started the topic Loan serviceability in the forum Finance 1 month ago

    Hey everyone,

    If I earn $150k a year, have a $300k mortgage and I purchase an investment property for $500k which gives around $2000 a month in rent, do the banks consider my annual income as $524k? Would they also count any depreciation claimed on the property and any tax claims on the tax deductible investment loan towards my annual salary? If…[Read more]

  • Hey Terry,

    I just wanted to clarify a few things if that’s alright (I talk in a discretionary trust sense)

    a) When you say to carefully select the director of the trust, should it be the personal with the highest annual income? What are the other important factors to consider?

    b) What do you mean when you say ‘avoid using certain lenders’?

    c)…[Read more]

  • wan0151 started the topic Lending leniency in the forum Finance 1 month, 1 week ago

    Hi all,

    If you own a property that has positive cash flow as opposed to negative gearing, would the banks be more willing to lend you more money as the rent received covers the repayments? I think you’d would be perceived as a much bigger risk if negative gearing as your own income factors in to covering the repayments as rent will be lower than…[Read more]

  • wan0151 started the topic Lending leniency in the forum Finance 1 month, 1 week ago

    Hi all,

    If you own a property that has positive cash flow as opposed to negative gearing, would the banks be more willing to lend you more money as the rent received covers the repayments? I think you’d would be perceived as a much bigger risk if negative gearing as your own income factors in to covering the repayments as rent will be lower than…[Read more]

  • It seems that most banks only provide an offset account if the investment loan securing the property (interest only in my case) is on variable interest and not fixed. Variable interest rate is higher than fixed which increases the monthly repayments and makes this strategy less appealing. Is it possible to have an offset account linked to a fixed…[Read more]

  • wan0151 replied to the topic Debt recycling in the forum Finance 1 month, 2 weeks ago

    In this case, is there a difference between an equity loan and a term loan? Would an equity loan work as well as term loan in this situation?

  • wan0151 replied to the topic Debt recycling in the forum Finance 1 month, 2 weeks ago

    Yes so in the example above, I pay down the entire $160k mortgage and then reborrow than same amount via a LOC to invest in stocks. Not sure why you say it wouldn’t make sense to use a LOC. Is it because of the high interest rate? What do you mean when say ‘usually using the same loan’?

  • wan0151 replied to the topic Debt recycling in the forum Finance 1 month, 2 weeks ago

    What do you mean when you say existing loan? I thought tax deductibility can only be achieved on debt used to secure income producing assets. Can you clarify this?

  • wan0151 started the topic Debt recycling in the forum Finance 1 month, 2 weeks ago

    Hi everyone,

    I have a P&I mortgage on my PPOR of $160k as well as $160k sitting in my offset account. I’m familiar with the concept of debt recycling but I haven’t done it myself yet. Would it make sense to pay down the entire mortgage with the money in the offset account and then access that equity with a LOC to invest in stocks (index fund)?…[Read more]

  • Hi Mr Taylor,

    Thanks for your reply, you were indeed correct! I appreciate the advice.

    Cheers,

  • Load More

wan0151

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