{"id":13254,"date":"2017-08-13T01:00:31","date_gmt":"2017-08-12T15:00:31","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=13254"},"modified":"2017-08-13T01:00:31","modified_gmt":"2017-08-12T15:00:31","slug":"how-to-best-use-bridging-finance-andrew-mirams","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/","title":{"rendered":"How to best use bridging finance – Andrew Mirams"},"content":{"rendered":"

Just the mention of bridging finance can strike fear into the hearts of some people but Andrew Mirams<\/strong> has some ways to make sure you use it wisely.
\nTranscript :<\/strong>
\nKevin:\u00a0\u00a0<\/b>We quite often talk about bridging finance, but I wonder how many people realize what\u2019s involved, what are the pitfalls, and really, is it all that expensive? Let\u2019s get a bit of an insight into this. Joining me now is Andrew Mirams from Intuitive Finance.
\nAndrew, welcome to the show once again. Thanks for your time.
\nAndrew:\u00a0\u00a0<\/b>My pleasure, Kevin. How are you?
\nKevin:\u00a0\u00a0<\/b>Well, thank you, my friend. Is bridging finance expensive? Walk me through some of the more practical uses of bridging finance.
\nAndrew:\u00a0\u00a0<\/b>It\u2019s a great question, because the first thing people often say is \u201cOh, I don\u2019t want to do bridging finance because I\u2019ve heard that\u2019s too expensive.\u201d It is and it isn\u2019t. It\u2019s a funny thing to say.
\nIf you think about what bridging finance is, firstly, generally it\u2019s when someone bought a property before they\u2019ve sold a property. Often, people want to do it when they just want to make one shift. They go out, they commit, they buy something at the auction on the weekend, 30 days later, they own that property, but now they have to exit their old property.
\nOften, they\u2019re upgrading. etc. That would be the most common use of bridging; very rarely on a downgrade because you should have enough money. But if there is a transition period, that\u2019s the bridging component. So, it\u2019s the bridging portion or the time in between a buy and a sale.
\nSo, when you say, \u201cIs it expensive?\u201d primarily, it\u2019s just because you\u2019re basically carrying two mortgages. That\u2019s the expensive portion, because you have the new mortgage that you\u2019ve taken on for the new property plus you still have to fund or look after your existing mortgage until that sells. So, that\u2019s probably where the main thing around the expense comes in \u2013 that you\u2019re really carrying two mortgages, Kevin.
\nKevin:\u00a0\u00a0<\/b>To describe it, its name really says what it is, doesn\u2019t it? It\u2019s a bridge between the old loan and the new loan. Is that right?
\nAndrew:\u00a0\u00a0<\/b>Absolutely. And when you say expensive, it\u2019s a short-term loan so the banks don\u2019t actively compete for it because they\u2019re looking for the end debt; that\u2019s what they\u2019re most interested in. There\u2019s a whole range of ways the banks assess it. Will they assess on the peak debt \u2013 the total exposure \u2013 or the end debt, and is there a contract now in place for the sale or not, and how much time?
\nThere are a whole lot of variations that go in it, but the expense part, generally you\u2019re talking about a variable interest rate in and around the fours. So, it\u2019s not that expensive from natural interest rate. The expense is really just covering the two mortgages.
\nKevin:\u00a0\u00a0<\/b>Yes, it really depends how long that takes. I guess you should be factoring in anywhere from two to three \u2013 maybe even four \u2013 months of carrying the bridging loan.
\nAndrew:\u00a0\u00a0<\/b>Yes. If you walked down the street to get the paper and you came back with a different bit of paper being a contract for sale because you bought something while you were out, you\u2019re probably not ready to sell your house. But then at the same time, most people who probably are entering a bridging loan and doing that were doing a little bit of preliminary work in advance, because the reality is that they\u2019re trying to get the house that they\u2019re in now ready for sale and in a position that they can sell it quickly because they don\u2019t want to carry those two mortgages in the long term.
\nKevin:\u00a0\u00a0<\/b>Yes. We\u2019ve quite often given the advice \u2013 haven\u2019t we \u2013 that it\u2019s best to sell before you buy so you don\u2019t find yourself in that situation. But practically speaking, that\u2019s not always possible, and you sometimes end up sacrificing the true value of the property that you currently own just to move to the new one.
\nAndrew:\u00a0\u00a0<\/b>Absolutely. We\u2019ve talked about how to negotiate, modern negotiation tools, and having all those sorts of things in place. Well, all of a sudden if you hand the power over by being in a position where you\u2019ve sold and now you have to buy something, you have to make that settlement, it takes you out of the position of power and it means that you might be a little bit more at the whim of a selling agent or a vendor in that instance.
\nKevin:\u00a0\u00a0<\/b>When it comes down to thinking about how expensive it may or may not be, it\u2019s really just a matter of factoring in the cost of the bridging loan as part of that move. It\u2019s part of the cost of doing it.
\nAndrew:\u00a0\u00a0<\/b>Absolutely. Yes, that\u2019s right. And like everything, Kevin, a little bit of planning and a bit of preparation, and just having your ducks in a row before you launch into these sorts of things, you can generally cover it off. And the smaller the bridge, the smaller the time gap, the less expensive it\u2019ll be for you.
\nKevin:\u00a0\u00a0<\/b>Always good talking to you. Andrew Mirams making a lot of sense from Intuitive Finance. And don\u2019t forget Andrew\u2019s channel, of course, on RET full of lots of great information and new videos we\u2019re putting up there as well all the time.
\nAndrew, thanks for your time.
\nAndrew:\u00a0\u00a0<\/b>My pleasure, Kevin. Thank you
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Just the mention of bridging finance can strike fear into the hearts of some people but Andrew Mirams has some ways to make sure you use it wisely. Transcript : Kevin:\u00a0\u00a0We quite often talk about bridging finance, but I wonder how many people realize what\u2019s…<\/p>\n","protected":false},"author":176692471,"featured_media":14647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,34,10,11,13,36,25,27],"tags":[101],"class_list":["post-13254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-andrew-mirams","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-sponsored-channels","category-trends-topic","tag-podcast"],"yoast_head":"\nHow to best use bridging finance - Andrew Mirams - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to best use bridging finance - Andrew Mirams - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Just the mention of bridging finance can strike fear into the hearts of some people but Andrew Mirams has some ways to make sure you use it wisely. Transcript : Kevin:\u00a0\u00a0We quite often talk about bridging finance, but I wonder how many people realize what\u2019s...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-08-12T15:00:31+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"How to best use bridging finance – Andrew Mirams\",\"datePublished\":\"2017-08-12T15:00:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\"},\"wordCount\":976,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Andrew Mirams\",\"Finance\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Investment\",\"Sponsored Channels\",\"Trends\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\",\"url\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\",\"name\":\"How to best use bridging finance - Andrew Mirams - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2017-08-12T15:00:31+00:00\",\"author\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/channels.realty.com.au\/realtytalk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to best use bridging finance – Andrew Mirams\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#website\",\"url\":\"https:\/\/channels.realty.com.au\/realtytalk\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to best use bridging finance - Andrew Mirams - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/","og_locale":"en_US","og_type":"article","og_title":"How to best use bridging finance - Andrew Mirams - Realty Talk","og_description":"Just the mention of bridging finance can strike fear into the hearts of some people but Andrew Mirams has some ways to make sure you use it wisely. Transcript : Kevin:\u00a0\u00a0We quite often talk about bridging finance, but I wonder how many people realize what\u2019s...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/","og_site_name":"Realty Talk","article_published_time":"2017-08-12T15:00:31+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"How to best use bridging finance – Andrew Mirams","datePublished":"2017-08-12T15:00:31+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/"},"wordCount":976,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Andrew Mirams","Finance","Kevin Turner","Kevin's Update","Latest Stories","Property Investment","Sponsored Channels","Trends"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/","name":"How to best use bridging finance - Andrew Mirams - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage"},"thumbnailUrl":"","datePublished":"2017-08-12T15:00:31+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-best-use-bridging-finance-andrew-mirams\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"How to best use bridging finance – Andrew Mirams"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/13254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=13254"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/13254\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=13254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=13254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=13254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}