All Topics / Help Needed! / 5th IP Structure

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of a_d_r_i_a_na_d_r_i_a_n
    Participant
    @a_d_r_i_a_n
    Join Date: 2011
    Post Count: 19
    December 20, 2011 - 3:33 am

    Hi all,

    I have been reading the forums for sometime now. My strategy is to buy and hold for positive cash flow.

    I have come across this today with my lender.

    I am in the process of finding / buying my 5th IP (95% LVR), and was advised by my lender that i am near my max borrowing power. (based on income)

    My current 4 loans are IO, 2 with 95% LVR and other 2 with 80% LVR. I also have a LOC with equity and added funds to it.

    His advise was to have the loan as fixed and this would increase my borrowing power again to squeeze poss. 2 to 3 more properties out.

    My thoughts:
    1. Purchase one more property with this lender, and be able to pull out some equity from it (renovating it then reval)
    2. If i max out my borrowing with this lender, I will not be able to top up my LOC (reval and pull out equity)
    3. Start to look for a new lender to expand my property portfolio

    Any thoughts would be great.

    Cheers
    Adrian

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 20, 2011 - 3:58 am

    Best to use a broker  think,

    Using different lenders will help a bit, but you will come to a time when you are maxed out. Increasing the rents and your wages will help but it can be a slow process.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of a_d_r_i_a_na_d_r_i_a_n
    Participant
    @a_d_r_i_a_n
    Join Date: 2011
    Post Count: 19
    December 20, 2011 - 4:45 am

    Thanks Terry for your advise.

    In general – I have been told that you have more leverage when dealing with the lender directly. As when dealing with a broker you do not have the personal presence, and they are the middle man.

    If i am incorrect please advise :)

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 20, 2011 - 4:47 am

    Leverage as in discounts?

    Now leverage is not your problem. Finding a lender that you can fit in is. Lenders won't really let you muscle them into lending to you either. You either qualifty or you. If it is borderline then maybe.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    December 20, 2011 - 5:39 am

    adrian not sure who told you that but that is absolute rubbish.

    In the main it is the other way around as a Broker will be aware of lenders credit policy wheareas the local Bank branch wouldnt have a clue. They have no discretion and cannot approve the loan as this is the domain of HQ Credit.

    Big difference between Sales and needing to get the figures Credit at your average lender.

    Other issue is that with all of the loans with the same lender then you are only exposed to 1 mortgage insurer and if they say enough is enough your financier can jump up and down all he likes but will not get the deal thru.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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