Kickass broker and property trust accountant recommendations

One of the other brokers may work it out for you, but there is not enough information - what are your monthly spending figures, dependants, credit card limits, PI loan on PPOR? IO loan on investments? $75k pre-tax? Full time permanent?

Why wouldn't you pay the $80k off the PPOR and reborrow using a separate split? Why would you pay a cash deposit on an investment while you have non-deductible debt? You would be throwing money away.

 

Well that's what I'd do with the cash.

Casual work. For the last 9 months.

Pi loan for ppor and I want interest only loans for the investments.

75k pre tax

Monthly spend of $1500.

No credit cards no other debt besides ppor

 

Sounds like you need to fill a fact find for a broker. Suggest you contact one....so many have shared some useful info here. You can't expect complete credit advice on the back of a thread.

Income will play a big role to match the goals esp post APRA changes as euro referred to.

 

Hi Rob,

When I first started property investing, I loved to learn the intricacies involved in all the aspects - the tax, the finance, the property purchasing. And that's great- I highly recommend it.

The problem arises when you think that's enough to go off and and do it all yourself. I did that and made some very expensive mistakes. The thing is you know more than someone who knows nothing, but nowhere near the amount that your professionals know. Somethings are really important to know generally, but then you need specific advice.

You've asked for a broker recommendation, but now you're asking for specific advice over a forum - bite the bullet and give one a ring. Our services are free and you've got a thread full of very competent brokers here - and some are in Melbourne. The value they will add to your investment and portfolio growth will be more than you can comprehend at this stage of your journey.

Good luck

 

Come to the dinner meeting this Thursday. Meet other investors. Details can be found here:
VIC - Melbourne (west-side) meetup - Thurs 29th September 7pm - Pascoe Vale Hotel, Pascoe Vale VIC

 

Agreed.

Ask all the questions, hopefully leave with a better understanding on a number of matters.

For first IP I'd much prefer all advice face to face be it broker lawyer or accountant

 

Banks assess debt at between 7 and 8% for servicing purposes, and most take 70-80% of gross rent for servicing purposes . So a simple calculation will tell you that you would need @ 10% yields in order for the banks to consider that property and its cash flow as "neutral" on its servicing calculator

here is a very simple example;
You have a 200K, 300K , 400K or 500K loan paying 4% I/O. ( or 3%I/O , or 2% I/O if you want to really illustrate the point)
You are getting 10% gross rental yield
You have exhausted your borrowing capacity but now you want to buy another property because you believe your killer yields will improve your servicing and get you into another deal.

The bank treats your existing 4% I/O debt ( or 3%, or 2% ) at a sensitised assessment rate of between 7 and 8%.
The bank also accepts between 70-80% of the 10% gross rent, so in real terms , they are using 7 or 8%.
Result = debt considered to be costing you 7 or 8%. Rental income considered to be 7 or 8%.

So in this circumstance 95% of lenders would consider your debt/yield situation to be neutral to servicing, but you would not see any advantage/improvement to borrowing capacity.

There are a few exceptions to this - Pepper, Liberty, NAB under some circumstances - but it is a general rule that would fit 95% of lenders and 95% of borrowers circumstances.

So you need rental yields of 11% or better, in order for positive cash flow to be good enough/advantageous enough to actually start improving your servicing at 95% of lenders . Or you need to focus on debt reduction...

 

There are only two realistic ways to improve your servicing in any meaningful way at all lenders

1. increase your income from employment
2. decrease your debt. Every dollar you already hold is costing you 7 or 8% on the post APRA/ASIC lender calcs at 95% of lenders.

 

Why do not see one of brokers face to face. They do not charge you anything. They earn trail commission from the lender if you lock to a loan contract. They disclose you this commission anyway. If no loan satisfies your need or you cannot get loan approval, you pay them nothing.

 

Depends on the broker.

 

Most of brokers earn commissions from lenders and not charge their customers. Check with them before engagement.

 

I charge an upfront fee of $660. But you are right in that most probably dont charge.

 

For your portfolio what structure did you opt for if not a trust?

 

I hold all properties in my personal name