8/14/2019 Espresso Property News February 2010

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February 2010

Understanding your banks lending formulasWhat is the maximum they will be prepared to lend you? How do they calculate these amounts? Although every banking relationship is

different, Australias largest five banks

(NAB, CBA, ANZ, Westpac and

St George) use the following two

formulas as their main guide in

assessing loans to you.

Loan to Value Ratio (LVR)

The LVR is probably the number one

factor in assessing how much the bank

is prepared to lend you against the

value of your property.

LVRs vary according to market

conditions and your individual

relationship but in broad terms you

should look at 80% as a common

number (with mortgage insuranceyou can go up as high as 95%).

For example:

In theory you may be able to borrow

a further $15,000 as this takes your

LVR up to 80%.

Debt Servicing Ratio (DSR)

The second main issue in lending lies in

whether or not the bank thinks youcan afford the payments based on

your income or cashflow.

As a general rule the bank will only

allow you to borrow an amount that

will cost you around 30 - 35% of your

annual gross taxable income.

This figure is calculated as follows:

For example: 12 months x $3,650

= $43,800 / annual total income of

$185,000 = a DSR of 23.67%.

A little knowledge goes a long way

when dealing with banks so its handy

to have an understanding of these

formulas both to save time and to

ensure your investment strategy

remains focused.

As far as the bank is concerned there

is an LVR of 78.46%.

If the bank has an LVR policy of 80%

you are within their limits.

*see our website for terms & conditions

www.phoenixnetwork.com.au

Have you run out of patience

with your property manager??

8/14/2019 Espresso Property News February 2010

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While every effort has been made to ensure the accuracy and completeness of the information, no guarantee is given nor responsibility taken. Espresso is possible with the support of apmasphere

...Did you know

1300 PHOENIXHave you run out of patience with your property manager??

Call us you will be pleasantly surprised.

m: 0412 242 327 t: +61 2 9388 7880

1, 31 Derby Street, Vaucluse NSW 2030 e: rentals@phoenixnetwork.com.aungela Tsolakis

.........DDDiiidddyyyooouuukkknnnooowww

valentines Day...vvvaaallleeennntttiiinnneeesssDDDaaayyy.........N Is a tradition. Since the Middle Ages,people have honoured St. Valentine, the

patron saint of romantic causes.

N Love inspires creativity. Even if words arentyour thing, a love letter, poem or handmade

card is the perfect way to express how you

feel about someone.

N Is an excuse stay inindulge in some fancycooking for two. Start with fresh oysters and

end with strawberries dipped in chocolate,

remember the champagne did I say

cooking?

N Single? Valentine's Day is the perfect

excuse to come clean about your secret

crush. Or if youre still too shy, send an

anonymous card, try

www.sendoutcards.com/phoenix (I haveallocated some free cards for you to play with)

remember sign it Your Valentine.

N Pamper yourselves. Stay in the honeymoonsuite at a five star hotel, visit a day spa

together, shower each other with gifts, get

dressed up for dinner, and order two rounds of

dessert.

N Spread the love. Remind your friends andfamily how much you love them by sending

cards to everyone you care about, try

www.sendoutcards.com/phoenixN Take a break. Whisk your partner away ona romantic weekend, or if youre single, take

your friends on a road trip.

N Allow love. Use this day toopen your heart and allow

love to flow to others and

back to you.

day...

... Happy

valentines

MV Untideoffers state of the art facilities in the most welcoming Italian design

decor, this fully air conditioned vessel is perfect for all weather entertaining, a

motor cruiser for the discerning.

Relax in the quiet ambience of the fine timber finishes and subdued decor

comfortable leather lounges of the main saloon. A perfect venue for corporate

entertaining, conferencing and opulent overnight stays.

There are seven separate areas in which to relax, to discuss business or enjoy our

exquisite cuisine. The fly bridge area offers spectacular views to join the Captain

as he cruises the best waterway in Australia.

Forultimate relaxation, nothing beats soaking up the sun on the expansive bow.

Superb meals are served by attentive hospitality crew. MV Untide is fully licensed

and offers premium wines and beers.

Suitable for up to 45 guests to discuss bookings & costscall Vas 0412 243 920

Landlords, the world of energy efficient appliances and strategies is

heading your way. Its no longer okay to use the spare shower head you

removed when you moved into your new house in your investment

property.

The world is becoming more energy conscious and as a consequence

most people want to live a lifestyle which uses less power, less water and

at a reduced cost. Technology is also working to improve our comfort and

lifestyle, hence the move to digital TV nationally (a topic we will cover in

detail in the next issue of Espresso).

As was discussed in a previous Espresso, the Government is currently

offering two rebates for homeowners and landlords, the Solar Hot Water

Rebate and the Home Insulation Program. If you havent already taken

advantage of these offers, now is the time! Details on eligibility can be

found at www.environment.gov.au/rebates.

Here are some other ideas to budget into the last five months of the

financial year that will also help maintain a long and happy tenancy:

Recommend a green power supplier.Most major energycompanies have green energy options and this information could be

included with the welcome pack when tenants sign a lease.

At the next change of tenancy, change all of the light globes in the

property to energy efficient ones.

In some states it's law but its also good practice to change water-

using items such as shower heads, taps and toilets to water efficient

models. As they require maintenance, check with your property

manager on conditions for their replacement.

Queensland already has the "Sustainability Declaration" for vendors. Start

making changes now to maintain the long term value of your property

.........HHaaappppppyyyvvvaaallleeennntttiiinnneeesss

ddaaayyy.........

go green ..

angela say ..