Any thoughts please

[robbbbbbb]

Would like some thoughts on my current situation

Propert value 1.2 mill debt 685 thou

and then purchased 30 acres toowomba with house, payed 830,000 with intial up front payment of 80,000 and with 5 payments of 150,000 for 5 years with no interest ( vendor finance ) And secured the title from day 1 so have locked in capital growth for nex 5 years but wont have payed for all of it till 2011
Property valued at 1.2 mill with debt owing now 750,000 but payable over 5 years ( which is 5 payments )

Have always stayed with one bank NAB which i am happy with however feel there is alot of equity there to be managed better and would like some thoughts from those in the respective fields
I share trade with good results or maybe buy another property

 

[Qlds007]

hi robbbb (did i miss an R or two)

The new property you have purchased whilst maybe in your name will undoubtedly have a mortgage registered against it by the Vendor to protect his interest so you will be unable to access the equity on this property.

You other properties are a different matter and whilst it is good to hear that you are happy with the NAB they are certainly conservative in their nature when it comes to accessing equity and resticting future borrowing.

Whilst i am unsure as to how you have your loan currently structured you could certainly access the available equity in a Line of Credit to assist you in purchasing additional IP's or share trading.

NAB certainly dont have the best range of investor suited products.

 

[robbbbbbb]

thanks richard

i will email you with further details as the way it is structured i can borrow up to 50% on the 2nd property

 

[geoffw]

The new property you have purchased whilst maybe in your name will undoubtedly have a mortgage registered against it by the Vendor to protect his interest so you will be unable to access the equity on this property.

A very interesting point.

I had not realised before that vendor finance can restrict the buyer. (And presumably the vendor as well?)

 

[Qlds007]

Geoff it most cases title does not pass to the purchaser until the final installment payment is made however if it does the Vendor will protect himself by registering a mortgage against the property similar to any other lender.

Without the Vendors consent the property cannot be used as security to borrow again.

 

[robbbbbbb]

richard

thanks for your input
i have secured finance against the property now and can do to a total of 50%, the vendors have only a mortgage on the portion that we owe and not on the total value of the property. Finance was secured on friday
Havent drawn down any money ( approval written) yet, but nice to know that it can be done
Also with advice on friday have secured an average of .075% saving over all loans i have, mainly by applying a pro pack and changing from NAB

Anyway thanks again for your advice
regards
rob