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Generally no real value gain if any for pools – they are very subjective as just as someone may love a pool, otherwise dislike them.
If you want to do it for personal reasons go for it – but I wouldn’t suggest you’ll increase your value by any discernible amount.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Pretty normal for them to deflect blame – it’s very common for the settlement teams to just plonk the funds anywhere. Generally not the end of the world and can be resolved – just a little tedious.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Cycling like that will help – ideally so long as it doesn’t auto close your account (some lenders will close accounts if they are paid down automatically), keep the funds in redraw up until you are about to settle and then transfer direct out of the loan account to the third party handling your settlement. (solicitor etc)
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
There’s definitely lenders out there who will work with people where a partner is on maternity leave. Depending on your servicing will depend what’s the best option.
Mat leave has been an area where the lenders have improved in recent time with their policy – in general we need to have a letter from the employer stating a return date, hours of work when they return, how much they will earn etc.
If you have a cash buffer to help between that time to meet any needs, that goes into the mix of supporting your position.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
This isn’t just Westpac – all the lenders are increasing their interest rates significantly to bolster their funds to meet the BASEL requirements. I wouldn’t suggest jumping ship to another lender just because of your existing lender increasing rates right at this moment – you may find by the time you settle your loan the new lender might hit you with a comparable increase sending you back to square one.
The alternative which is worth considering is whether your existing lender has a competitive fixed option, OR another lender offering long term competitive fixed rates + IO terms.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
There’s not real method – that’s crystal ball gazing.
You can look at previous stats, but what drove those previous gains may not happen again so it’s effectively just you taking a guess.
Apartments though, supply/demand equation is terrible for them everywhere in Australia as they are built more and more – so you could very well estimate a growth rate of 0%, or as has happened in some others capitals negative growth.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
shouldn’t be too much of a problem- just a normal substitution of security. Security substitutions work a treat as long as:
*the owner of each property is the same
*the borrowers do not change
*there is sufficient equity in the end property to keep the total debts <80% LVRCorey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Plenty of potential options – some lenders will look at this situation more favourably than others.
Speak with an investment focused broker who can sort this out for you. There’s a wide variety of ways each lender calculates serviceability, it’s just a case of using the right one for the right deal.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I find a lot of my clients regularly use Certus Legal – they’ve always been decent to work with from our end.
http://www.certuslegal.com.au/
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
What you do is draw a separate equity release against either the PPOR or investment property, interest only, offset account etc These released funds act as the deposit funds for the future purchase and any government charges.
When the future purchase is made, the remaining amount is then borrowed solely against the new property being purchased.
Get an investment focused broker to set this up for you and they can ensure it’s all done correctly and that the rest of your finance structure is appropriate – we knock this stuff through all day that it’s easy, but for an early investor it can be a bit more daunting. I’ve actually written an article on how to structure equity deposits previously here: http://www.precisionfunding.com.au/cash-or-equity-for-deposit/
Ensure you get this done NOW before making a purchase, so that the deposit funds can be ready and waiting when you need it.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Not a chance – you don’t get a warranty from buying a house. The exception would be for new builds which still fall under the warranty period, but from the sounds of what work you’ve noted I doubt there is anything way to get this re-mediated by another party.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
The fee calculation is noted here.
As per the registration fee, just another fee by the State government “just because”. They’ve got to find mechanisms to generate revenue somehow and sometimes its easier to trump up other fees than just ratcheting up stamp duty causing an uproar.
I’m assuming this transfer would be circa 1.6mil if thats the fee?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Nice and simple, as Terry has noted just keep the loan into two portions – so you can clearly define what is investment vs non investment use.
Borrowing against the IP security won’t play into the CGT considerations.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Looks like another place flogging off dual key properties in QLD – this kind of stuff has been around for a while and the numbers are always very optimistic.
Remember the important rule – if something sounds too good to be true, it probably is.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
2.12% is abysmal for a return – with a tiny fluctuation in any costs or sale price and you’ve lost money whilst wasting months of your time.
Just like development, if you’re going to flip you would want to be making sufficient return commensurate with the time and effort being expended. And likewise look at your goals – is 5k here and there going to get you to retirement? Unlikely. A simple buy and hold which is well positioned would likely outstrip that return every day of the week.
I won’t comment on the specifics of the renovation numbers, wilko has done well breaking this down.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
That doesn’t sound right – generally pre-strata’d properties are sold at a discount compared to if they were all on seperate titles.
Either they’ve got their numbers muddled, theres a misunderstanding or they have no clue what they’re doing!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Property valuers can give you a valuation based on historical sales – so they would be the best bet to get an accurate gauge of the properties value at the time.
Hope you have a consent order in place/being put in place, we’ve been dealing with some particularly nasty scenarios where clients thought they’d ignore getting one and it’s going back to bite them – in one case they potentially be foreclosed on because of it.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Commercial has definitely less restrictions for non-residents than residential lending – and can allow you to access mainstream commercial products in comparison to residential lending where you’re having to use niche lender/products.
If you have sufficient capital for a deposit of 30-40%, you will get more cost effective and longer term facilities within the commercial lending space than resi at this time.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
88%+LMI is preferable, the cost saving is reasonable as the insurance premium jumps the moment you go over 88.01%+ – I’ve written about the considerations for what LVR to choose here: http://www.precisionfunding.com.au/lmi-friend-or-foe/
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
As Jamie has noted based on that estimate bank value it shouldn’t be that low as uncrossing loans generally reduces the facilities to 80% of the remaining security. If it’s not a high risk postcode of security (with some lenders things like apartments or multiple dwellings on one title can reduce the LVR allowable).
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
