Keeping your cash flow Let’s say you’ve got a number of investments, and one in particular’s on interest only, and then you’ve got another one that you’re looking to buy. You have also got your PPR. It’s on a P&I loan and it’s got a small...
The higher the debt, the lower the LVR The higher the debt you get, the lower the LVR, or the lower percentage they will lend you. At the beginning you might start at 80%. But if you start getting up above $1 million they might be only...
Having control It’s about you having control too. If you’ve got nine different properties with one bank, it’s the bank manager who’s controlling you not the other way around. They’re determining whether you can go and do an investment or not, or whether a particular type of...
Cross securitising even in trusts Regarding the nine houses and nine banks, if you’ve got each of those investment properties in their own trust then how can they cross securitise between two different entities? They can. You are the guarantor as you’re guaranteeing this one, you’re guaranteeing...
How much should your safety buffer be? How much this buffer should be will depend on your circumstances - what you do, the security of what you do, how much income you have coming in, what’s the likelihood of that income ever stopping, whether you have...
When you have used all the banks With the investment properties usually because they’re in trusts – it’s not unrealistic to have one or two or three properties with an institution. Sooner or later you are going to run out of institutions and you’ve really got to...
Serviceability If your serviceability was okay they’d try to do as maximal amount of lending as they could in this particular property. Do a 95% loan or around that, therefore minimising the amount that comes out of your line of credit. Therefore by doing that, it...
And you lose your tax deductions? You lose your tax deductions and if you pay any debt off it’s actually on a pro rata basis and it’s a real misery. Keep your investment debt and your owner occupied debt separate. What you would do here normally is...
A Sad Reality The larger banks decide for instance as in the case of one of my clients, that they no longer wanted to have loans extended to roadhouses or service stations in Central Queensland. Consequently, all service stations in the region that were banking with...
