{"id":1763,"date":"2016-01-24T22:41:31","date_gmt":"2016-01-24T14:41:31","guid":{"rendered":"http:\/\/people.utm.my\/noorsidi\/?p=1763"},"modified":"2016-01-24T22:41:31","modified_gmt":"2016-01-24T14:41:31","slug":"ways-to-succeed-during-a-recession-and-become-a-confident-and-knowledgeable-investor-3","status":"publish","type":"post","link":"https:\/\/people.utm.my\/noorsidi\/2016\/01\/24\/ways-to-succeed-during-a-recession-and-become-a-confident-and-knowledgeable-investor-3\/","title":{"rendered":"Ways To Succeed During A Recession (And Become A Confident And Knowledgeable Investor)"},"content":{"rendered":"

3. Re-establish better income status<\/strong><\/p>\n

Many property investors have been using low-doc or no-doc borrowing to acquire properties in the past, but this lending space has changed significantly since 2008.<\/p>\n

No-doc loans are technically not being offered by any institutional lenders, low-doc loans are sitting at 60% with a few exceptions still at 80%. Overseas experience shows that it is possible that low-doc loans will be completely taken off the market soon, especially when there is not sufficient credit.\u00a0 Lenders would lend to the best quality borrowers, and low-doc borrowers are considered lower quality than full-doc borrowers.<\/p>\n

Borrowers get into low-doc borrowing for many reasons, some due to employment status such as self-employed, others due to complicated financials, and we also see some borrowers simply couldn’t be bothered to provide financials because the interest rates difference was quite small between low-doc and full-doc loans in the past.<\/p>\n

The trend is that low-doc loans will be at a higher premium if they are still to be offered in the future.\u00a0 For property investors who are still actively acquiring properties, there will be financial benefit to get full-doc loans rather than low-doc loans in the near future, hence looking after your income status can become important in the next few years.<\/p>\n

We have seen situation where a client who is currently a contractor being unable to refinance his loans from low-doc to full-doc, and some of his low-doc lenders have gone out of business.\u00a0 For him to take advantage of the current lower full-doc fixed interest rate, he needs to become a full-doc borrower again, which means he needs to go back to a full-time permanent job position with less income. However the mortgage repayment savings created from the refinance will substantially outweigh the loss of his work income.<\/p>\n","protected":false},"excerpt":{"rendered":"

3. Re-establish better income status Many property investors have been using low-doc or no-doc borrowing to acquire properties in the past, but this lending space has changed significantly since 2008. No-doc loans are technically not being offered by any institutional lenders, low-doc loans are sitting at 60% with a few exceptions still at 80%. Overseas … <\/p>\n

Continue reading “Ways To Succeed During A Recession (And Become A Confident And Knowledgeable Investor)”<\/span><\/a><\/p>\n","protected":false},"author":18926,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1763","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/posts\/1763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/users\/18926"}],"replies":[{"embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/comments?post=1763"}],"version-history":[{"count":0,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/posts\/1763\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/media?parent=1763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/categories?post=1763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/tags?post=1763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}