- jcso99Participant@jcso99Join Date: 2005Post Count: 95
I am Australian citizen residing in HK and has two IPs in Melbourne. I have a salaried job in Hong Kong and both IPs in Melbourne is tenanted. Both IPs are held in discretionary trust and I act as guarantor for both loans with AMP Bank. Loans are $360K but now one of the IPs in Beenleigh, QLD has some urgent repairs (water leakage) costing $20K which I want it fixed asap (I have a separate post in other section of this forum) but AMP Bank is saying that they have this rule that loan increase will only be approved if total loan is $1M or above and it will take 5 weeks to disburse the loan (even if I can satisfy the $1M loan limit). Want to see if anybody can help me with my urgent loan situation? I am very open to suggestions? Otherwise, i will have to pay it under my HK credit card, which is not what I want at all. My plan for this IP is to sell it after water leakage issue is fixed. Cheers JohnChristopher BerryParticipant@chrisberryJoin Date: 2018Post Count: 1
I am the in-house broker for property investing and the information you have provided is correct. AMP has recently changed its appetite by only providing any type of trust loan, whether it be a purchase, refinance or increase at an aggregate million-dollar minimum. There are a few other lenders who would be willing to do this deal, however, to submit a loan with another lender, have it approved, and get the refinance completed and funding available, this time of year would most likely take approx 4-6 weeks. Given that you are overseas also, ID verification would need to be completed via your nearest Australian consulate, so just keep this in mind if it’s a few hours worth of travel. The only real short-term fix would be to either apply for another credit card to cover the cost or a personal loan if you could find someone that would be willing to do this for the overseas applicants (within Australia), but I am not aware of anyone who offers this. Not sure if you have the ability to apply locally but the bottom line, whether it is via AMP or another lender, it’s going to take a number of weeks before you see any funding unfortunately.BennyModerator@bennyJoin Date: 2002Post Count: 1,416
Not such good news from Chris there…. Now it seems to me you are left with “running the numbers”.
First off, do you have tenants in place? If so, what is happening to them while repairs are carried out? Are they OK to stay there while such massive repairs are undertaken? If not, then what are their options? Look too at the likely Interest cost of using a Credit Card – even at some exorbitant rate (e.g. 20%), it could be utilised while a Personal Loan is sourced, so any Interest costs on the Credit Card (if it takes a month to source other funds) might be as little as 20% x $25k / 12 = $420 or so. That is likely less than a week’s rent, so yeah, go stick it on credit if it gets things done quickly.
A Personal loan could be as low as 8% Interest Rate too, so just 40% of the Credit Card rate. That may also allow you time to “chase up other options via a lawyer” to see if someone else can cover the cost of this failure (as per earlier replies). Surely keeping good tenants would be paramount, wouldn’t it? Repair costs would also be deductible, so some of the pain may be taken away in that mode. All is not lost…..
You’ve been served up lemons – can you work out how to make lemonade? ;)
Bennyjcso99Participant@jcso99Join Date: 2005Post Count: 95
Thanks Chris and Benny for the suggestion. Yes, my approach now is to whack it on my overseas credit card (whilst I have started the loan approach with a private lender which will take about 3 to 4 weeks to disburse and then payback the overseas credit card). The work should be done in 10 days (fingers cross) and then the tenant will then move in again. Cheers John