what's stopping you..

Discussion in 'Investor Psychology & Mindset' started by KLH, 25th Aug, 2015.

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  1. 2FAST4U

    2FAST4U Well-Known Member

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    [​IMG]
     
    2FAST4U, 25th Aug, 2015
    #21
    Esh and Brian84 like this.
  2. MTR

    MTR Well-Known Member

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    I think its absolutely frightening at the moment, the market is going pear shaped, slip slidding, I would want to be holding back

    1,000 point drop in the index OVERNIGHT.

    We haven’t seen stocks get smashed like this since 2008! And that includes the 2010 ‘flash crash’

    Yikes
    MTR
     
    MTR, 25th Aug, 2015
    #22
    Esh likes this.
  3. Ed Barton

    Ed Barton Well-Known Member

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    Crap

    Edit - and let them eat cake.
     
    Ed Barton, 25th Aug, 2015
    #23
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Have you
    Have you been listening to the Treasurer's podcasts again?
     
    Scott No Mates, 25th Aug, 2015
    #24
    2FAST4U likes this.
  5. juzzy

    juzzy Well-Known Member

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    Hi Raydar,

    Could you please be more specific as to what this means? Want to make sure I don't stuff my loan up before it's too late.

    Cheers
     
    juzzy, 25th Aug, 2015
    #25
  6. THX

    THX Well-Known Member

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    Why crap? What is your alternative?
     
    THX, 25th Aug, 2015
    #26
  7. Tonibell

    Tonibell Well-Known Member

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    Working out whether it is "excessive accumulation" when I should be in to "risk mitigation" instead - as per @keithj
     
    Tonibell, 25th Aug, 2015
    #27
  8. THX

    THX Well-Known Member

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    Quick googlefu copy and paste (easier than typing it myself)
    Cross securitisation (also referred to as cross collateralisation or interlocking securities) describes the situation where a loan is secured by more than one property. A common example is where an investor has equity in a home mortgage and decides to purchase an investment property.

    In other words you do not want your ppor as security on your ip.
     
    THX, 25th Aug, 2015
    #28
  9. Sackie

    Sackie Well-Known Member

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    @juzzy Do you have a good finance/mortgage broker who also invests in property looking after your loan details?
     
    Sackie, 25th Aug, 2015
    #29
  10. Raydar

    Raydar Well-Known Member

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    Ill leave it up to the brokers to dish out advice, but you can start by reading more here;
    - https://propertychat.com.au/community/threads/cross-collateralisation-10-reasons-to-avoid.153/
    - https://propertychat.com.au/communi...-loans-to-acquire-investment-properties.3144/

    Also browse the forum or post your current situation. The brokers on here are more than happy to assist with your situation.
     
    Raydar, 25th Aug, 2015
    #30
  11. juzzy

    juzzy Well-Known Member

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    I thought that was how most people got started in investing, by using their home's equity? Or am I missing something. I'll keep reading though, thanks for the reply.

    I'm not knowledgeable enough to know if he's good or not, he seems to be!

    Thanks Raydar, I'll have a read in a minute.

    Current situation is using our current PPOR equity to purchase a new property. This new property may be a new PPOR and we rent out or old one, or the new place may be the IP. In any case the plan was to have 20% of the loan in our PPOR (the equity we are using) and 80% in the IP. Claim tax deductions on the 80% loan as it is negative geared. Interest only. Offset account.

    Do I need two offsets or can I just have one to cover both loans?

    Thanks again all.
     
    juzzy, 25th Aug, 2015
    #31
  12. Sackie

    Sackie Well-Known Member

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    Cool. Then he would most likely never let you cross collateralise. If he's suggesting it without very good reason, I would be running away from him, fast.

    Just from some of the questions your asking us re finance..makes me wonder what is the FB advising you on exactly..
     
    Sackie, 25th Aug, 2015
    #32
  13. juzzy

    juzzy Well-Known Member

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    We are looking at using the same bank for the equity from our PPOR and our IP. So by my understanding this is X-coll, which is not good?

    So I need to use a different lender from the one which currently has my PPOR title and has given me money for a deposit?
     
    juzzy, 25th Aug, 2015
    #33
  14. Sackie

    Sackie Well-Known Member

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    i'll leave it to the expert brokers on here answer but have you brought this up with your FB? and if so whats his advice on this...?
     
    Sackie, 25th Aug, 2015
    #34
  15. juzzy

    juzzy Well-Known Member

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    His initial advice was that we set it up to pay off Principal and Interest. I then told him I wanted to do interest only with an offset account. That should have set off alarm bells. I wasn't aware going with the same bank would be an issue for the next property (potentially). I might bring it up with him and request to get a pre-approval with another bank for the second loan.

    Which sucks because CUA had a way better rate than the NAB last time we checked (which was a while ago). :(

    This place is awesome, I'm learning so much. Thanks everyone.
     
    juzzy, 25th Aug, 2015
    #35
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  16. Sackie

    Sackie Well-Known Member

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    My honest advice mate? If you have to, finish off this deal with him, do not cross, check everything he says with experienced brokers on here like your doing - and then never use him again. Hes no where near good enough for what you need mate. Get some good recommendations for FB in Melbourne or I'm sure there are some good ones on the forum. just my opinion.
     
    Sackie, 25th Aug, 2015
    #36
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  17. juzzy

    juzzy Well-Known Member

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    Sounds like a plan Leo.

    Thanks again.
     
    juzzy, 25th Aug, 2015
    #37
  18. Sackie

    Sackie Well-Known Member

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    Sounds good. Do you enjoy the 'shopping' process? :) I get such a rush when I go shopping for a deal. Its soooo much fun! :D
     
    Sackie, 25th Aug, 2015
    #38
    Brian84 likes this.
  19. AndrewTDP

    AndrewTDP Well-Known Member

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    Concentrating on a business at the moment instead.

    Do have one interesting site for a house build/subdivision in mind though. Just need to run through finances a bit more.
     
    AndrewTDP, 25th Aug, 2015
    #39
  20. The Y-man

    The Y-man Moderator Staff Member

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    Pretty much business as usual.......

    The Y-man
     
    The Y-man, 25th Aug, 2015
    #40
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