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...
When banks call in their loans Let’s say that there’s a change in the banking policy and the bank no longer believes that the infrastructure’s in that town anymore and call in all of their loans. You have to refinance. Usually you have about 30 days...
Can you see the trend? What happens now is you’ve got a court case against you for something to do with one of your properties. When you bought the property, the verandah was unsafe and despite this being in the building report upon purchase, you didn’t...
Why not cross securitise? What happens is, the bank takes both houses as security and wraps the two mortgages together? Let’s say we’ve got $830,000 worth of asset and we’ve got $430,000 worth of loans adding the second one in to the total. So we’ve still got...
Using Equity Using capital that you have sitting in your own home means that you are converting your equity into a future pension. You are using the equity that’s sitting there not being used at the moment and putting it into a property where it is...
