Serviceability

whats Latrobe like? Does Latrobe have the lowest interest rates/servicing of other lenders?

 

They have a good special going at the moment and use actual repayments for loans not being refinanced, plus 85% of rental income.

 

Can you fix interest?

 

Great thread guys...Could I please ask how can I check my serviceability ? is there a formula or way to find out instead of using thise online calculator?

Hope to hear some suggestions.

Thanks ,
N

 

Best thing to do is find a broker on here that resonates with you and ask them to crunch your numbers

 

Case by case and various factors taken into consideration on top of your earnings ie HECS, number of children, credit card limit, salary packaging if you have it, assets and etc.

 

Thanks @Gockie ,

Any recommendations ?

Actually I saw your response yesterday on one of the threads "goals of 2016" and it was very impressive how you were planning to add IP's in your portfolio.

That's where it all started.

 

Ok as you asked and as you are in Sydney i'll happily recommend @Shahin_Afarin to you. He'll work in your best interests and he gets it done. And.... always a fast responder too.



However, I will say many other brokers on here impress me with their knowledge, and I would be entirely confident in using their services. It is a relationship type of service. You want to think about getting loans as a portfolio, not just a singular transaction. Therefore I believe a strategy should be in place, and you want a broker who can help get you there.

 

Much appreciated @Gockie ..

You are rite about having a strategy.

Let's see what future holds.

 

Be wary of yesterday's story of bought 10 places in 2 years thing because they are basing that story pre APRA restriction. Maybe it can still be done but more difficult and going to take time for it to happen.

 

Im wondering whether the days of growing large portfolios are over? say 4 or more properties.
Liberty is the only one that will lend me money and at 5% variable rates. (
All other lenders assess my existing loans at P& I repayments with interest rates between 7-8%.
What chances does someone have to build a portfolio beyond 4 properties if this criteria continues?

 

There are others that will possibly lend that aren't quite at Liberty level but better than P&I payments over 25 years. That said, none of them are particularly cheap. I guess it's a matter of how much of a hurdle is 0.5% going to be?

 

The easiest way to do is earn a lot more income. With the new lending serviceability and credit restrictions, is building a portfolio still the best way to make money?

 

That's why I'd like to make Development my next step. Assuming I can get one to stack up, looking at $2600 net cashflow per month if I build and hold 4 small townhouses in Moreton Bay. The additional $31k pa cashflow will make a big difference.

At the moment, end-values need to lift about $50k per dwelling for there to be sufficient margin. For now I'm preserving/building capital and equity to put towards development.

 

It depends on your income, how much the IPs cost and how you structure it. For example, if you buy 4 x $100k properties vs 4 x $600k properties, the outcome will be very different. Of course the $100k properties are rubbish, but if you goal is to have 4 properties...

 

My broker just told me , with the new lending rules , it may not be possible to get another loan; (

 

Was it ever the best way?

 

I'll let you know in the next 10 years.

 

It's dollar value borrowed, not number of properties. better to think of it that way

4 x 200K isnt the same as 4 x 500K for example.

dollar value first. get a budget. purchase to that budget.

focus on either increasing income by @ 40-50K NET per million already owed , or aggressively reducing debt. Thats the "rough" formula.

Liberty is well below 5% .... not sure where that information is coming from?

 

Liberty is well below 5% .... not sure where that information is coming from?[/QUOTE]
I was also told by my broker it would be that rate. They said I was classed as a professional investor 4.99 and $295pa. I thought that seemed high what are the rates you have been seeing?