[dammitMember@dammitJoin Date: 2005Post Count: 43]

October 18, 2009 - 8:01 am

Hi Xodiac.

So the house you live in in bris is your PPOR. that means your 240k loan is not tax deductible.

Your Cairns IP loan should be tax deductible, well the interest component of your repayments, anyway.

What would make sense is to switch the Cairns IP to an IO loan, and the reduction in what your repayments are, channel that surplus $ into your PPOR loan (as extra repayments/offset account). this will reduce your non tax deductible debt first. (might only be $20-40 a week that you can instead of paying off your principle in your cairns property channel toward your ppor loan).

You can continue to channel all your surplus $ into your PPOR loan if you can redraw it or have an offset account this could work well for you, and then if you desire to buy another IP you can then pull some of it out to get your deposit or use your equity and make your new IP an IO loan too so you have more capital?

You would need to check that you can change your cairns IP loan to an interest only loan without costing you the earth/negating any benefit you might earn too.

im definitely not an expert on the subject but the above is just what ive read/learnt and heard of others doing.

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 30, 2008 - 7:12 am

Thanks for the feedback. Gibbo- not likely to be extended (maternity leave contract), that said though she knows the end date and will have another job lined up to ensure no down time. We would have a contingency in place to be able to afford the loan but the banks don’t seem to take any of that into account.

Megs, thanks for that info, I will look into those ideas a bit further, I guess I would need to be very thorough if considering any type of those deals.

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 30, 2008 - 5:16 am

Update: We applied for the St George No Deposit (Quick Saver) loan, they came back saying we can easily service 390k loan based on our incomes etc,we only asked for 300k.  but as my wife works in the Government on a fixed term contract, even though she gets paid by the government and not an employment agency and gets full annual leave, pub hols etc they cannot take her income into account because her contract ends at the end of Jan 09 and we can't afford the loan based on 1 income.

are there any lenders who recognise a contract position as an income? she is full time, and has worked in the particular industry for a few years – her last job was for 1 and a half years in the government and she only had 1 week break between that job and her current one. they don't seem to take any of that into account?

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 29, 2008 - 11:27 pm

Thanks for the feedback guys.

Is there any solution to this problem like going with a specific lender (even with a slightly higher interest rate), or anything you think we could do other than postpone purchasing?

We have both been in the same line of work (finance/admin) for the last 4 years with minimal breaks between employment- will any lenders consider a short current position history provided it is in the same industry as previous work history?

Would applying for pre-approval with several lenders such as SGB, CBAs 100% loan, ING etc have a detrimental effect on our credit rating if there is too many enquiries? We really need to be able to capitalise any LMI fees into the loan too which I dont know if that will be possible.

Last year we had a home loan of 200,000 which we paid back in full when we sold our house, and have also had a 20k loan which we paid back in full.

Is it worth using a mortgage broker to try and get preapproval/find a lender willing to let us borrow based on our circumstances or will the answer be the same with all lenders (a big fat no until more deposit $ and longer employment stability) regardless?

My last question, do the banks valuation of a property ever come back more than what your paying for it, or is it all slightly rigged to make sure they dont give you more money than they have to?

Thanks again

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 29, 2008 - 2:43 am

Hi Terryw

Thanks for the reply. 12 months is going to be hard press, my wife is in a Government temporary position which only has a duration of 6 months, I am in full time permanent employment (well,a 2 year contract)…based on this is any lender going to come to the party or is it going to be like trying to find a needle in a haystack?

Thanks

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 27, 2007 - 5:48 am

anyone have any ideas? surely someone out there does….???  

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 16, 2007 - 12:45 pm

anyone?  

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 14, 2007 - 10:40 am

from what i understand if they are selling it 'as is' means you need to do your own due diligence, make sure the stove works, ceiling fans lights powerpoints heaters etc because when u move in if it doesnt work and you didnt check it then your taking on all the problems the property has because you bought it 'as is'.

i think they include this in the contract always unless its like a new house thats still under a building warranty..i dont know about an as is offer i would say any offer you make is based on the property being as it is unless you make a conditional offer like

$200,000 subject to fixing the oven, range hood and retiling the bathroom. that would be an offer that is not 'as is'.. ??  

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 8, 2007 - 6:39 am

anyone?

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 7, 2007 - 9:33 am

yeah i know what u mean, real estate said 5% or 10% deposit. 'thats the way we do it'. so just had to deal with it.

i couldve stood my ground and negotiated a lower deposit but given there was a lot of buyers we had to make our offer as attractive as possible.

thanks everyone   

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 5, 2007 - 11:50 am

great, that seems to make a lot of sense. i must check with the bank they have no daily limit on outgoing transfers – be good if i can avoid the time and cost ($20 fee) in having to get a bank cheque,,

thnx for ur reply

[dammitMember@dammitJoin Date: 2005Post Count: 43]

September 3, 2007 - 9:57 pm

also, im not sure if agents/vendors will let you do a conditional contract,, if they refuse to should i try and get a 14 day cooling off period in the contract to allow sufficient time to get a pest building and bank valuation,?? any one have any ideas? this is in NSW. if its a cooling off period, can the vendor pull out or is it only the buyer who gets the cooling off period?

[dammitMember@dammitJoin Date: 2005Post Count: 43]

August 27, 2007 - 6:49 am

Ahh ok, are you able to give me an idea of some lenders with a rate around 7.5% (if it exist anymore) which use PMI?

or should i email you to discuss further?

cheers

[dammitMember@dammitJoin Date: 2005Post Count: 43]

August 27, 2007 - 6:28 am

Interesting to know, incidently i just did a search for the previous area (captains flat 2623) and it says the same thing as when i search the new postcode 2581, 300k to 95% LVR and yet they knocked it back…hmm, odd how all this works..

I wonder if the 'instability of employment' issue will still cause a problem for us if they give the go ahead to the area. i thought lenders these days didnt mind if you job hopped a bit (e.g. due to moving to different cities etc) provided you didnt have any long gaps of unemployment..i woulda thought 6months in the same job and being permanent would be enough for them, these LMI companies seem quite strict..will wait and see what happens with my fingers crossed

thanks again richard.

[dammitMember@dammitJoin Date: 2005Post Count: 43]

August 27, 2007 - 6:06 am

Hi Guys

thanks for your help, ive given up on that area as I dont think the resale values/growth is good enough to warrant a purchase.

I spoke with the teachers credit union and they told me the LMI company they use is GenWorth. They said they pretty much wont insure a mortgage unless the town has over 2,500 population. We are looking at small villages because they offer slightly cheaper purchase prices than Canberra, rural atmosphere, and they are within commutable distance to travel to work each day. I've resubmitted another application for a different village/town but I have a feeling the same thing is going to happen, can anyone tell me if this town looks any better from a mortgage insurance point of view?

Collector, NSW, Postcode 2581 on federal Hwy, 35km from Goulburn (popn of 20000) and 53km from Canberra City – e.g. a 3 brm house on about 1400m2 block of land..

or, Gunning NSW Postcode again 2581 on Hume hwy, 45km from Goulburn, and 66km from Canberra City. Similar type of house and block size.

If GenWorth doesnt touch any of these little villages, can any one give me an idea of what lender uses a company thats different to GenWorth? What is the other main LMI company?

We'd be looking now at a purchase price of about 230k, with 15k deposit (8k saving 7k fhog) so LVR of approx 93.5%.
Btw still only trying to obtain Pre-approval, even if i get preapproval for that amount, is there a chance they are going to re-assess it once i find the 'dream property' within that price range & then decline it so im back to square one? Or is the whole point of preapproval so they cant do that??

Thanks everyone If its still no good I will see if richard or a broker can help me find a lender willing to lend on this.

[dammitMember@dammitJoin Date: 2005Post Count: 43]

August 23, 2007 - 5:08 am

Qlds007 wrote:

Checking the post code it appears acceptable with the right lender.

Hi there,

thanks for your help, should I be trying a mortgage broker now to try & find if there is anyone willing to lend me the $$, can brokers get you pre-approval from their lenders or to get pre-approval do you need to go direct to a lender?

or should I just try and find a different lender and apply for pre-approval? (do most charge a fee for this or do it for free?)

Interesting what you say about the parents thing cheraul, my parents fully own their own home outright, but they may be looking at selling it within the next two years. Does this affect it?

Does this mean that the lender would put a hold on 20% of their home, or say if I purchased for 180k, put 15k towards but needed 21k to make the LVR 80%, or would they just value my parents house, and say if it was worth 200k, they would just have a 10.5% hold on their house to match the 21k short I was rather than 20%?

I think my parents would be reluctant to put their house up as security incase we missed a payment could they lose their house (they dont like risk & i dont think they love me that much!!)? They'd have the money to bail out of the 21k stake they guaranteed if we defaulted (which it wont) if that is the way it works?

any idea of companies or further info on this type of approach?

thanks again for ur helps:)  

[dammitMember@dammitJoin Date: 2005Post Count: 43]

August 30, 2006 - 12:09 am

This will get you started,, good questions to ask:

What is included/excluded with the sale?

How big is the land?

How much are the council rates/water/outgoings on the property? Strata/body corporate?

When was the property constructed?

Have there been any offers rejected on the property?

Are there any offers the owner is considering? (if they arent ‘dead’ offers the agent cant disclose details of the offers)

What price would the owner be willing to accept (you’d be suprised at what you find out from this)

Why is the owner selling ?

This should get you started,, have a look on Google also..

[dammitMember@dammitJoin Date: 2005Post Count: 43]

August 7, 2006 - 10:26 pm

The town is Goulburn NSW, there are a few project home builders operating in the area- Beechwood Homes, Huxley Homes, Eagle Homes, Allworth homes is about all I think.

I have looked at the cost of brand new houses in the town, there are some 4brm DLUG/ens for $295,000, & Huxley homes was recently advertising house&land 3brm ens in a new estate for $240,000.

I am trying to do the sums on a new vs established home, you can get a basic 3brm established home in a good area for about 260k, but I don’t think it will be possible to build for that $ if the land is 100k once you take the site costs into account.

With the site costs, does anyone know roughly what it costs to go from a vacant block of land to getting the site ready for the slab to be poured? I spose it depends how level the block is to begin with, but do they need to put piping/sewerage etc to a different spot? Any books or resources/sites anyone knows for building a home with FAQ’s / tips etc would be appreciated. Thanks again for your help!!

[dammitMember@dammitJoin Date: 2005Post Count: 43]

July 7, 2006 - 12:49 am

Is this for NSW or just in general??

If you negotiate and agree on a price before you have done the inspections, and they bring back something unfavourable like i dont know termites, are you able to negotiate the price down further to allow for repairs or is it too late to do this?

If you pull out of a contract within the cooling off period thats when you lose 0.25% right?, if you pull out after the cooling off period (say you cant get finance) does it still go off 0.25% or something different??

Thanks for your help.

[dammitMember@dammitJoin Date: 2005Post Count: 43]

July 7, 2006 - 12:38 am

While we’re on the topic, does anyone know roughly what it costs to get Ducted Gas Central heating installed in a house? (Natural Gas)

I’ve rung a supplier who’s told me that the units they sell cost about $2500 but couldnt give me an idea on the actual install costs or ducting costs etc.

I would imagine it would be somewhere in the vicinity of 6000-8000? Any ideas??

JamieM: I would say if you want an accurate idea u would need to measure& ring to ask for a quote, but I did read that reno’ing your kitchen you should spend no more than 4-6% of what the house cost 2 begin with, or the bathroom no more than 2–3% to avoid overcapitalisation as a general rule.