I put an answer in your other post –

You mentioned 69% Lvr on Gross realisation Val – for readers this refers to the end value when the project is complete. Banks lend 65% and your looking for an investor to fund an additional 80k.

Can you also provide estimated hard costs and total development costs?

E.g. If you buy land for 300k and build for…[Read more]

Your right Richard however a few of them have higher rates.

If you meet the existing client critera you can get wealth or mav package from 6.16% or the 3 rate saver / economiser.

What state are you in?

I don’t usually give companies like this too much time – lodge a claim to someone like Vcat (vic) or contact an industry body to find out what dispute resolution options you have – If you bring in a third party into it e.g. Ombudsman or similar; they might pay more attention.

Re savy investors – A lot of declines with the majors at the moment come down to presentation / lack of supporting comments. If you can identify the potential reasons that you might get declined and cover off these risks in your comments (mitigate the risks in advance) – you will get a fast answer (and better chance of approval). Helps if you…[Read more]

Bit of a tricky one. The banks have taken steps to prevent customers and brokers being able to pick a valuer that they have a relationship with.

For example – when the bank orders a valuation their computer takes the data re the property and allocates it to a valuer – therefore not even the banker / broker knows who the valuer is until after the…[Read more]

Cba do 95% plus LMI if you have a credit card, car loan or personal loan with them – must have had it fir at least 6 months. You need 5% genuine savings though.

Number 8 – your right about some of the benefits but people have different goals.

Personally I have About 4 years to finish paying off my properties.

All I want to do is pay them off and collect rent, along with trail from my mortgage book. I don’t have any desire to drive nice cars – would rather live by a beach and surf every day. Work a day…[Read more]

Depends on your state

Just a point for number 8.

Working over ten years in both commercial and retail banking – most clients with int only and offset do not have cash in offset equal to the amount their loan would have reduced if p+i.

200k over 30 years at 6.5% is approx $1264 versus approx $1083 Interest only. I don’t think I would notice the $179 per month.

Its…[Read more]

You’re right I don’t have all the details. But a deal that is submitted correctly should have a background on the client and a list of areas that the deal is outside of policy along with supporting comments re why it should be approved.

If a client has bad credit you need to outline the details of each default or judgememt, what caused the…[Read more]

Jhk – sorry to say it but if your deal takes that long it’s most likley your broker. Once a deal goes to an underwriter you’re looking at approx 48 hours as a maximum. CBA are writing almost 50% of home loans in australia at the moment. It’s rare that my deals take more than a day or two for approval.

Call the state revenue office. I had a similar problem with BankWest. The amount in my contract was incorrect. I notified them and they said it was an estimate and the correct amount would come back at settlement. They then overpaid the SRO.

Funny thing was when I called the state revenue office the knew which bank as I was one of many this was…[Read more]

ryan mclean wrote:
Be careful because when you put your loans with the same bank they are automatically cross colateralised.

As long as you let the banker know you don’t want them crossed you should have no problem. In some cases the banker needs to load two new applications as opposed to one on their computer. Apart from that there is no…[Read more]

You may not need low doc. If you are contracting full time to just one company you can be treated almost as payg.

You need approx 790k in total against two properties worth approx 1.1M. If you can show you can meet interest for 12 months ( plenty of time to sell) you should be OK.

You can use your 48k towards the 12 month interest ~ therefore…[Read more]

Technically a trust is not a legal entity – it is a structure. The income needs to be transferred (distributed) to a legal entity which then pays tax at it’s own tax rate. The losses stay in trust however can be carried forward and deducted from futures profits.

A warning here to others. There are reasons that banks lend lower ratios on student accommodation, retirement units, studio apartments and serviced apartments. This is due to the risk – both in return of capital and revenue.

Often operators of these businesses are also the developers. The revenue from the management company is not generally…[Read more]

If there is no lease it wil be treated as vacant possession and you will pay GST.

For referance if a comm property is leased it will have a going concern value e.g. Value if sold with current tennent. If it is vacant it will generally be sold on vacant possession value. Valuers will often include both values in a report. Many banks only lend…[Read more]

Also worth noting you can get your banker to revalue your properties every 12 months. In most cases their system will not request a new Val if you stay within 8-10% increase per annum.

It’s a good way to bump up your limits annually without formal valuations.

Add the caveat to the mortgage and devide by the value of the property.

E.g.

Current mortgage. 256K
plus caveat. 32k

total debts against security. 288k

288 / 320 = 90% LVR

Given that it is monthly interest you might need to borrow to cover some of the costs. Establishment fees and legal fees can be high.

Why not tell us what it is…[Read more]

thecrest wrote:
Hi BankerSounds fast. What Valuation did you do in 2 hours ?

RP Data e.g. computer based valuation. If the estimated value is within reason based on the size of the land, and supported by recent sales data – RP data is acceptable. For owners estimate or deals with a Contract of Sale. The computer takes approx 30 seconds to make…[Read more]