Hi all,
My parents have come to me for advice as they fancy my knowledge over some of their friends and brokers they've talked to. But I hate giving them advice because
1) They have different goals and views on risk than me
2) When stuff goes wrong, they're likely to tell me off - even if it were to be mother nature's doing or something.
I advised them on their current setup about 5 years ago but now they're having trouble repaying it as rates have increased and mum is getting less work and dad is getting less overtime. He's a longtime public servant but mum just does casual stuff. Spending most of their emergency LOC i set up for them hasn't helped either.
Some pretty rough numbers look like this - (estimated values could be off)
1) PPOR in Perth 550k - PI loan with Bankwest of 115K owing, they have some redraw avail too, unsure how much.
2) LOC with Bankwest of about 100k - I think it's mostly drawn (deposit for Adelaide IP and cars )
3) IP in Adelaide bought for I think 227K worth about 350K with 180k IO loan, again with Bankwest. The 5 year IO period on it runs out later this year. It rents for 230/w.
They did have a broker come around but the ()#$* advised them to put all 3 accounts on 1 giant PI loan, increasing their monthly obligation by $350 a month considering their main concern is lack of affordability. I'd really prefer to get them onto the interstate broker I use (from this forum) - but they're sit down for a cuppa and chat type people.
Their main goal, as far as I know, is to survive long enough for the Adelaide IP to be worth enough to sell and pay out all loans. This will enable them their dream of travelling around Australia for a couple of years.
With this in mind, I'm probably going to suggest they keep the loans mostly as is, but alk to BankWest about renewing the IO period on the IP and converting the PPOR to IO to help cashflow. I'm unsure of their policy on either of these 2 events.
Looking for any and all kinds of ideas to be thrown into the ring.
My parents have come to me for advice as they fancy my knowledge over some of their friends and brokers they've talked to. But I hate giving them advice because
1) They have different goals and views on risk than me
2) When stuff goes wrong, they're likely to tell me off - even if it were to be mother nature's doing or something.
I advised them on their current setup about 5 years ago but now they're having trouble repaying it as rates have increased and mum is getting less work and dad is getting less overtime. He's a longtime public servant but mum just does casual stuff. Spending most of their emergency LOC i set up for them hasn't helped either.
Some pretty rough numbers look like this - (estimated values could be off)
1) PPOR in Perth 550k - PI loan with Bankwest of 115K owing, they have some redraw avail too, unsure how much.
2) LOC with Bankwest of about 100k - I think it's mostly drawn (deposit for Adelaide IP and cars )
3) IP in Adelaide bought for I think 227K worth about 350K with 180k IO loan, again with Bankwest. The 5 year IO period on it runs out later this year. It rents for 230/w.
They did have a broker come around but the ()#$* advised them to put all 3 accounts on 1 giant PI loan, increasing their monthly obligation by $350 a month considering their main concern is lack of affordability. I'd really prefer to get them onto the interstate broker I use (from this forum) - but they're sit down for a cuppa and chat type people.
Their main goal, as far as I know, is to survive long enough for the Adelaide IP to be worth enough to sell and pay out all loans. This will enable them their dream of travelling around Australia for a couple of years.
With this in mind, I'm probably going to suggest they keep the loans mostly as is, but alk to BankWest about renewing the IO period on the IP and converting the PPOR to IO to help cashflow. I'm unsure of their policy on either of these 2 events.
Looking for any and all kinds of ideas to be thrown into the ring.
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