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Discussion in 'Introductions' started by raj_27, 13th Jan, 2016.

  1. raj_27

    raj_27 Well-Known Member

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    Hi all,


    Just introducing myself. And a big thank you to all who are contributing to the forum. I have been and will be busy reading.


    I am educating myself about IP before jumping into buying first IP. So far I have been very lazy and doing not much about it.


    We bout our PPOR back in 2009 and been paying off as much as I can. Couple of month ago I refinanced for better rate and got some equity too (sitting in offset account).


    Been thinking about IP for years now (3.5 years). Haven't made my first move yet. Excuses been lack of job security, having kids (5 year & 1 year now). Latest one is (very creative) don't have goal and plan set.


    Now that I have at looked family spending habits and forecasted the budget for couple of years, I will be meeting Mortgage Brokers to see what I can afford to borrow.


    I am struggling to set a goal at the moment. I have some idea now by reading couple of things, how I work back from what I require in future. I don't like the idea of jumping into something before goal in mind (another excuse probably). I will be reading (forum) planning and working hard to do this in next week.


    Looking forward to be part of property-chat.


    Any words of motivation to stop me making excuses.


    Thanks


    Ravi
     
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  2. bob shovel

    bob shovel Well-Known Member

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    Just do it! Go buy in bris.then sit back and plan, atleast that way something will be growing while you think!
     
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  3. MsAli

    MsAli Well-Known Member Premium Member

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    Wecome Ravi. Your handle Raj is familiar :). Reminds of a few bollywood movies!

    Budget is the first thing to look at so well done for doing that.

    Totally agree that you must look at the big picture and work back to what you need to do build your portfolio. That's been the biggest lesson for me and mine.

    I'd suggest looking at what your visions are and where you want to see yourself in 5 to 10 years and that would help drive your goals.

    If there was one thing you want in 5 years what would be your vision / dream?

    Can recommend a few resources.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Welcome aboard Raj.

    Did you set up a second loan split for that equity release? Is the offset account the money is sitting in directly linked to that second loan split?

    Cheers

    Jamie
     
  5. raj_27

    raj_27 Well-Known Member

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    That is what my wife says. I think by the time i get nos from broker and dont have a plan , i will be shopping any way.
     
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  6. raj_27

    raj_27 Well-Known Member

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    Thanks MsaLi

    Ha ha Raj is a pretty common Indian name and is very popular in Bollywood.

    For me PI will be to generate passive income (like everybody i guess) how much is a question at the moment. I think to get to to 5 year dream/vision i should really think 15 to 20 year ahead. At the moment in 15 year time i like to retire (stop working and do what i like in that time) 33 year old now.

    Please recommend me resources. Really looking forward to it.
     
  7. bob shovel

    bob shovel Well-Known Member

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    Listen to your wife... Then listen to us ;)
    Keep reading, find a broker, buy, then plan
     
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  8. raj_27

    raj_27 Well-Known Member

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    This is not a split loan at all. Its Standard veritable interest loan with offset account. They gave me loan for 80% of property value hence more money in offset account than before. This is what I meant may be wrong terminology.
     
  9. raj_27

    raj_27 Well-Known Member

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    you are right. She is right 99 % of the time.
     
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  10. York

    York Finance Broker Business Member

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    I think the question @Jamie Moore asked above is important regarding your offset account. Structuring is very important from the beginning. Did you split your loan? Or did you just park equity straight into the offset from your PPOR loan? This may cause mixed use issues later if you use those funds for investment purposes.
     
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Ok - this presents a problem.

    You'll need to fix this up before doing anything else.

    Terry w is going to have a fit when he reads this.

    Cheers

    Jamie
     
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  12. raj_27

    raj_27 Well-Known Member

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    Thanks Jamie

    I don't understand what you mean by split loan. What problem it is going create with current setting.

    Couple of month ago i shopped around and refinanced my PPOR loan. After the refinance i got 35k extra in my new loan offset account (refinanced my PPOR for 80% house value) . IP was not in my mind back then at all.

    When i do buy an investment property it will be a separate loan. Will be all together different loan provider too. Money i got in my offset account will go towards all the expenses including IP buying expense and its loan repayments.

    Do you still think i have a problem?
     
  13. York

    York Finance Broker Business Member

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  14. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I do.

    The equity release should have been set up as a second loan against your ppor.

    It's unlikely you'll be able to claim the equity release as a tax deduction.

    Cheers

    Jamie
     
  15. raj_27

    raj_27 Well-Known Member

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    That makes sense. I dint think the lender i refinanced had that option for the interest rate i got (4.06).
     
  16. raj_27

    raj_27 Well-Known Member

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    Thanks York I have read though them.
     
  17. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I'd argue that structure is generally more important than rate.

    In this instance - you've got a low rate at the expense of increasing your non-deductible debt.

    Cheers

    Jamie
     
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  18. raj_27

    raj_27 Well-Known Member

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    I totally agree with you.

    I was not considering IP at the time of refinance. Lender asked me you want more money, i said why not.

    I now have to figure how i fix it.
     
  19. York

    York Finance Broker Business Member

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    Raj, I think it's a good idea if you spoke to a broker. There are some excellent ones here like Jamie who deal with these kinds of matters daily. Given one a call. It can make a huge difference if you start the right way. Mistakes can be very expensive later on in your journey especially as your portfolio grows.
     
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  20. Azazel

    Azazel Well-Known Member

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    Hi @raj_27 , educating yourself is the way to go.
    Reading here is a good start.
    Get your hands on as many property investment books by as many different authors as you can.
     
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