Hi,

Your strategy sounds very sound, except that if youn are planning on turning the property into an investment property you should no pay down the loan. Using an interest only loan with a 100% offset account will do the same thing in terms of your interest charges, but will give you added flexibility and will also save you money when you come…[Read more]

Hi JG,

There are a number of problems with these sorts of properties. Principly, they are very difficult to finance, lenders do not like them. So you will find you either have to put in a large amount as a deposit or pay very high rate. In most cases, when this is taken into account, they are not attractive. You can get better terms on a…[Read more]

Hi Judw,

What is the value of the security properties and are they unencumbered?

Regards
Alistair

Hiu Simmo,

I have to agree with Michael. I am prety certain you will do well in that area over the medium and long term, maybe even short term as well. My company is involved in a number of very large projects that way at the moment, and i’m sure there are others spending money down there.

Using Metropole would also be a very good idea,…[Read more]

Hi Sweet,

There are a number of groups from this forum that get together, in different states. The Sydney one seems pretty organised and group of us have had a few meetings in Melbourne where we have had a range of speakers, at no cost.

Regards
Alistair Perry

Hi MGS,

Servicability is not worked out as a percentage of wages. Lenders take your income then add a percentage of rental income, maybe overtime and some other income (percentages and what income is counted differs between lenders). They then minus debt repayments, usually worked out at a higher interest rate than you are paying (but not…[Read more]

If WA is anything like Vic you need to budget for 12 months. You may get it through in 6 months, but it is best to use a worst case scenario for due diligence.

Regards
Alistair Perry

Hi Darren,

I think you would find this easier to get your mind around the situation if you only seperate your debts into Home Loan debt and Investment debt, whether you investment debt is one or more loans doesn’t really matter in terms of the cost.

The home loan debts will cost you considerably more than the investment debt, because it is not…[Read more]

Hi Martin,

The rastes are higher but you can still get around 7%, which isn’t too bad. I haven’t brokered one for a while, so i would have to go and look up the exact rate. If you can save a 5% deposit you can access the vast majority of loans (you can also capitalise mortgage insurance with the majority so effectivelu lend 97%). If possible this…[Read more]

Hi Martin,

I think the area you are looking at is great. My company is doing work for a number of large developers who are investing very large amounts of money in the area. My brother also bought an IP in Somerville last week.

With regard to finance, if you can afford the stamp duty and other expenses then there are 100% loans available that…[Read more]

Hi Herks,

I also have quite a lot of experience in this type of deal. Basically, if the local council has designated the area as suitable for rezoning in its strategic plan, then you can start the process and there would be a lot of people interested in joint venturing with you or buying you out. If it is not, then you need to get are looking at…[Read more]

Hi Grant,

It is very difficult to answer your question specifically, without knowing the detauils of your situation. There are most probably quite a lot of options open to you. What you need is a broker who is well versed in development funding.

Regards
Alistair Perry

Hi Jeff,

I’m sorry to hear of your experience with brokers in the past. I trust neither were people who post here, as all of the brokers here are very knowledgable and would save you, or anyone else who went to them, money.

I have heard a lot of people, including the author of a research report on the broking industry, suggest that brokers place…[Read more]

Hi JudW

You should be able to get a no doc loan below 7% at 70% LVR. As Richard mentioned there are better options for lo doc loans.

Regards
Alistair Perry

Hi Jubb,

You only need a 5% deposit (less if are prepared to pay a higher interest rate), plus enough money to cover stampduty and other costs to purchase each property. With $200K in equity deposits for the two properties will not be a problem.

Regards
Alistair Perry

Hi Chris and Mike,

Even better than reading “How Investing in Commercial Property really works”, call the author Chris Lang on 03 9654 3022 ad have a chat with him. He also has a web site http://www.gal.com.au

Regards
Alistair Perry

Hi DrX,

The fact that you have objections does not mean that you will not get your permit. One of our clients last year received 30 objections and still got his permit without having to go to appeal. As Michael stated, if the objection is not reasonable the couincil will not take it seriously.

I assume your development is in SA, so the situation…[Read more]

Hi Redwing,

Try CBA and ANZ, there are others as well.

Regards
Alistair

Hi Magic32,

It all depends on your future goals. It is obvioulsy more expensive to pay LMI, but this will leave you free cash to use elsewhere (btw if you contribute a 5% deposit and other costs, you can capitalise LMI for most loans). There is no right or wrong answer, it is a metter of what works best for your strategy.

If you do use a 95%…[Read more]

I didn’t come from WA, but I live in Bayside Melbourne and also have a small bub (almost 9 months). I like this area because it also has good infrastructure and public transport, plus is close to the beach.

I think the inner west, around Yarraville, is a great area to invest, or to live if you don’t have kids, but space is great for a…[Read more]