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Broker/bank help, suggestions

Discussion in 'Finance & Banking' started by Dunsborough, 15th Jan, 2007.

  1. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    Hi Gang
    I have recently retired at 47 (too young but health came into it) and In the next few months i will be sourcing a loc or fully offset loan and suspect will need to be no doc as i have no servacability now as still neg geared. (present bank xyz turning blind eye for now but couldnt offer any more or so they say even though lvr 21-23%)

    i have one loan of 370k fixed at 6.64% fixed with xyz untill dec 2008 on a ip recently valued at 870k.

    i have another ip debt free worth 450K (reckon banks would say anyway)
    i have my ppor worth again on a bank valuation i reckon 450k.

    I am in Bunbury WA and have spoken to one so called property savvy broker in Perth but lot of things were vague and huge sums of money were suggested.

    For now i would like to hand over title deed to the 450k ip and access 80% for some managed funds. Last financial year my Payg summary stated 32k from my pt work but after neg gearing including heap of prepaid bills my tax return says i earnt 12k. I have had a abn for several years but really a croc as all it was for was for some caretaking around strata complex.

    I welcome all suggestions for favourite banks, brokers etc as i realise distance doesnt need to be a hindrance. I know brokers frequent this site and will welcome any direct corespondence

    Thanks in advance
     
  2. Rolf Latham

    Rolf Latham Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    45
    Location:
    Gold Coast and Sydney
    Hiya Dunsborough

    Recent changes ( or should I say interpretations) to the WA brokers licencing act mean that Eastern Staters can now legally work with Sandgropers :)

    It sounds to me that you should be able to do what you want without too much stress or cash (in terms of fees).

    Typically a no doc loan is best left at 70 % LVR or less. While there are products at 80 %, these tend to have issues in either rate or exit costs.

    There are lo doc lends ( where you declare an income, vs no doc where you dont declare an income) at 80 % that may suit.

    If you are looking to borrow more long term, it would pay to work with a good independent brokers, since what you do today may hinder you tommorow

    ta
    rolf
     
  3. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    Hi Rolf
    thanks for the note, good to hear the market has opened up across the borders
    I am definately going to need some form of finance to commence my living on equity journey in the near future.
    While my credit rating is a1, i didnt have the brains to set up any finance before i finished work and would reckon lo doc is out of question and will need no doc i think, but would loved to be proved wrong:rolleyes: .
    Thanks for the pointer re staying under 70%. Are you suggesting a standard loan with redraw or a loc?
    What ballpark rates will i be charged, mid 7 % or higher?
    Either way will need to set up carefully with sub accounts to satisfy ATO? Is this something readily done by people? I have one only fixed 370k loan across 3 properties (secured against 1)
    Rolf what are long term issues you mention, ie not cross collaterising?
    thanks again
    All ideas and suggestions readily appreciated
    Cheers