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Hello property investors :)

Discussion in 'Introductions' started by StephenB, 15th Dec, 2015.

  1. StephenB

    StephenB Member

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    Perth
    Hi all, I've been renting out (I'm the Landlord not using a real estate agent) a 2 bedroom unit for about 5 years now. My wife and I also built a 3 bedroom house which we lived in for 2 years until the house outgrew our little family (2 boys). So we have been renting that out for 2.5 years and we would love to get another investment property but due to serviceability we can't until my wife is working again. I don't understand that as I'm on a good income and both properties are positively geared. In the meantime I just want to learn as much as I can and contribute when I have the time :)
    My father-in-law is my mentor as he has 10 properties and retired before he hit 60. My goal is to semi-retire by 50 but even by 60 would be great.
    Looking forward to chatting with you all.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hi and welcome aboard.

    Who advised that you hit a borrowing capacity wall? A bank or broker?

    Cheers

    Jamie
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Different lenders have very different criteria for determining how much you can afford. The results can vary dramatically depending on on the circumstances and there's on 'one size fits all' solution. You're not going to get a comprehensive analysis by simply talking to one or two lenders, which is why a broker can be so useful.

    All that said, there's been a lot of changes in lending criteria over the last 6 months and people simply can't borrow as much they once could. It's a serious problem and I don't think people will be able to get the same results for financial independence as quickly as they once might have.
     
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  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Hi Stephen,

    Welcome to the forum!

    You're lucky to have a mentor, most people are lucky if they know someone with 10 properties, let alone be related to one :)

    Keep an eye out for our Perth meet-ups - there should be one sometime in January, it would be good to have you along.
     
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  5. Jennifer Duke

    Jennifer Duke Well-Known Member

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    I wish I had learned more for my parents - still time but they are SMSF investors.

    Where is your IP? Perth?
     
  6. Azazel

    Azazel Well-Known Member

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    Hey @StephenB , welcome aboard.
    Are you using the 10 property strategy as a rough blueprint?
     
  7. StephenB

    StephenB Member

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    Thanks Jamie. Yes our bank manager. I haven't considered using a broker. With the banks lending less money lately I don't rate my chances.
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Which lender, Stephen?
     
  9. StephenB

    StephenB Member

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    If I listened to my parents financial advice I wouldn't have taken any risks. They still don't understand the difference between good and bad debts.

    Yeah both of them are in Perth (South of the river) but the next one we won't live in it first :)
     
  10. StephenB

    StephenB Member

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    NAB, we get a decent group discount :)
     
  11. larrylarry

    larrylarry Well-Known Member

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    As an investor I think you need to explore every avenue. Don't take no for answer too easily.
     
  12. StephenB

    StephenB Member

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    Yeah as a basic guide but I understand the market has changed a lot since he purchased/built his IPs and I'll need to be adaptable ;)
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Group discount? How's that?
     
  14. StephenB

    StephenB Member

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    My father-in-law negotiated it for our immediate family due to the number of home loans we have :)

    Ps is anyone else struggling to use this website on an iPhone using Chrome?
     
  15. larrylarry

    larrylarry Well-Known Member

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    I'm using Chrome on android and it's fine.
     
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  16. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    That could explain it. Limiting yourself to one lender can limit your borrowing capacity.

    I hope that group discount doesn't mean that all loans (yours and families) are crossed up.

    Cheers

    Jamie
     
  17. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I hope that too - not a good situation if so, especially for a retiree.
     
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  18. StephenB

    StephenB Member

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    Yeah I have read that limiting to one lender is not a good strategy as they cross your loans.

    Our families loans aren't crossed just our personal home loan to one of the IPs (I'm pretty sure).
     
  19. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    That's great news, it makes it much less complex to fix. Having loans with one lender can be fine, you can have multiple uncrossed loans with one lender, however NAB are notorious for crossing loans, so if you go direct to branch it's inevitable they'll take all the security they can.
     
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  20. StephenB

    StephenB Member

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    Yeah I've got a feeling they did cross the loans as I remember them saying it was for security, even though we didn't need LMI.

    I'm thinking about getting a line of credit and using that money plus most of our savings (leave some for a rainy day) to put a deposit down on an IP.
     
    Jess Peletier likes this.