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Hi I am 3am.

Discussion in 'Introductions' started by 3am, 14th Aug, 2015.

  1. 3am

    3am Active Member

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    I was 2am in Somersoft which I joined not long before it closed. I am nearly 60 I am going to retire in a few years time with an average pension. My clock is ticking away in terms of ability to borrow. I am hoping someone here will tell me its still possible to acquire more after retirement.
     
  2. wylie

    wylie Moderator Staff Member

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    It is possible but depends on your assets, liabilities and income.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Welcome aboard :)

    Agree with Wylie - it's still possible but comes down to your financial position. Lenders take into account ongoing pensions for servicing.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    It's actually not hard to borrow for investment purposes approaching retirement. Buying your own home is a little trickier because the banks need to know you can afford the repayments in retirement.

    Last year we managed to get a PPOR loan for a couple in their 70s. It wasn't easy and I pretty much had to map out their retirement strategy for the bank, but the deal did get done.

    A fortnight ago we helped some self funded retirees purchase a house and land, again as their PPOR. What got them over the line was that they have a regular income from the super fund (worth about $500k in total) and another IP which has good cash flow despite having a small loan over it.

    Quite a few lenders will also accept aged and disability pensions for affordability purposes.

    If you're starting with nothing at 55, you're probably in trouble. If you've got some other assets it's just a matter of working through the longer term strategy.
     
  5. 3am

    3am Active Member

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    Thanks for the responses. I do own a ppor which i have a loan. I will be selling it n move into a 2 br unit with very little mortgage depending on what i can selling my current home for. I want to buy another house for first IP to rent and an OTP. I have been advised that since i m about to retire in 4 yrs time, i better not be buying OTP. I want to know why not? I did well in the first OTP which i will be moving into and sell it when the new OTP is ready. Is this a good idea. I will on retirement get a $50000 pension indexed for life. I will also have a $500000 life insurance cover for the estate. Hopefully this will support the mortgage repayment for a while after my deceased.
     
  6. Bayview

    Bayview Well-Known Member

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    So, on the next forum will you be...4am? :D
     
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  7. Azazel

    Azazel Well-Known Member

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    Hey 3am, welcome aboard.
    I know someone who bought a unit at 60 and paid it off in 5 years, so it's never too late. Possible to use all the rest of the funds for IPs.
     
  8. Chilliblue

    Chilliblue Well-Known Member

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    Hey 3am. There are a few brokers on this site so give them a PM.
     
  9. Bayview

    Bayview Well-Known Member

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    Shouldn't that be; give them an AM? :D
     
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  10. Azazel

    Azazel Well-Known Member

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    Uhuh, this might start getting confusing ;)
     
  11. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Welcome! I'd follow @Chilliblue's advice and chat to a broker for some input a little more tailored to your circumstances.

    Approach OTP with caution. There can be a lot of hidden surprises; most of them aren't the kind people generally like to receive.
     
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  12. miked

    miked Well-Known Member

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    Being so close to retirement, it's important for you to take advantage of what little capital growth you can. Buying OTP the price is usually increased to include things such as marketing fees and a little something something on top for each of the develop and builder. You're also more likely to be buying in an area where there is significant development going on, which means there is less chance for CG.

    People will say, 'why buy 2nd hand when for just X more I can buy new?' and won't pay much for your property.

    That all said, it is also good to avoid risk being so close to retirement... and making a play for huge CG in a few years can also be risky.
     
  13. Azazel

    Azazel Well-Known Member

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    Yep, agreed, no more OTP for you. Don't push your luck, you've done well from it, most don't. Time for a little diversification, you can't afford to get screwed when you're that close to retiring.
     
  14. 3am

    3am Active Member

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    @Steven Ryan otp near to completion end of this year or early next year. CBRE project managed.

    @miked i bought at 7 o'clock property clock so rode most of the boom.

    @Azazel bought when funds was limited just $5000 deposit and a bank guarantee for reason to flip it before settlement but now thinking i would lose most of the gain to tax and stamp duty.

    You are right i cant afford to stuff up. I also asked for comments on another thread ....selling ppor thread. I am Interested in all comments.