Forum Replies Created
So Ethan, yes a complaint is looking like our option. I’m the type that would do that and I’m not going down without a fight.
Good on ya. I know of a recent similar case where the borrower went all the way with the ombudsman against a big4 lender and got full satisfaction (short of an apology, you can forget about that 😉).
Will be interested to know how it panned out.
Good luck! 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Oh my. Can’t see myself signing such a POA 😱😱😱
Is this for a specific property and maximum price or are you giving someone a blank cheque to represent you in any auction at any price? 😳
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Generally speaking, I would prefer an old house rather than a new duplex (or even a new house for that matter) every day of the week.
Why? Because I can renovate an old house. So for an investment of say 10% I can increase its value by 20-30% today instead of waiting how many years for the market to do the same gain?
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Generally speaking, I would probably borrow 80% on all properties and place remaining funds in offset (or redraw). Be sure not to cross the loans! Suggest considering speaking with a broker for specific advice 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Totally unacceptable and I wouldn’t stand for it.
Basically, moving forward I see two options:
1. Take your business elsewhere. I’m biased of course but I strongly believe that going through a great broker is the way to go. Poor customer service should be answered by customers leaving. However, if it’s important for you to stay with the current lender, there is option 2:
2. Lodge a complaint to the lender. If they won’t give you the previous fixed rate, lodge a complaint with the ombudsman. That should sort things out.
Would be happy to know how it worked out. I’m sure that with kindness and persistence, you will be happy with the end result 👍😎
Best wishes,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hey mate,
Am a bit unclear on the details. What stops you from not having your girlfriend in this deal so you could get the FHBG?
Suggest contacting a broker that isn’t connected to that company (to ensure he’s completely on your side…) and examine options as specific advice is needed.
Same regarding getting out of the deal, if that’s the option you’d choose. Suggest contacting a solicitor for specific advice if the broker option doesn’t yield the result you’re after.
Hope this helps?
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Also, the prospective buyers are requesting a condition in the contract that the sale is dependent on the sale of their property. This means that I would need to go to the expense of getting the section 32 and a solicitor review the contract when I am not sure if the sale will proceed.
Hi Mel, that’s not an issue. You could stipulate in the contract that a certain flat fee is non refundable in case the buyer fails to sell their PPOR within X months. That fee should at least cover your legal and holding costs.
In regards to the valuation, I seriously doubt anyone here can tell you the value of your property without inspecting it. And even so, different people have different valuations as you saw from the agents. You can get a valuer to come and provide a valuation but again, 3 valuers will probably come with 3 different valuations, and probably will be on the low/safe side.
Auction could get you a higher price but could result with nothing. Ideally, if the buyer is ok with waiting, you could try to eat the cake and have it whole? Setup an auction with a reserve price well above the buyer’s offer + the agent and auction fees. If it passes, great. If not, you turn around and sell it privately to the buyer. Win-win.
That is if selling is the thing you actually want? It is, after all, a very personal and specific decision if to sell and what price to accept.
Hope this helps?
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hey mate,
I’m sure some people will find it useful.
I’ve used plenty of formulas when I used to invest in shares. Still look at some ratios in real estate, when looking to compare apples to apples but here’s the kicker: from my experience, property isn’t just the present value. Far from it. One property might have better ratios but the other could be renovated and then the ratios of that one would be far superior. And that’s before looking at CG of each property. And is it flood prone? And what about the demand for that many beds in that suburb? Etc etc.
hope this helps?
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hi Deb,
Multiple applications will get your credit score hurting, yes.
Did you go direct or via a broker? A good broker would pull your credit file before applying and thus you would avoid even applying to BankWest as they would reject the application, as they did.
If your partner can service all by himself, that could work, yes. otherwise there are lenders that would accept you guys, but at a higher rate.
I’m biased of course but if I were you I would definitely go via a broker. More options, less hassle 😉
Hope this helps?
Happy Easter!
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Lenders will look at your brother in law tax returns. If the numbers work, there shouldn’t be an issue.
Suggest having a preliminary discussion with a broker to get specific advice.
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Generally speaking, properties usually grow in price in this order (from most to least):
House > duplex > townhouse > unit
Can’t see ratios between them changing much but I bet it fluctuates. If I were you I would probably guesstimate them to have the same growth speed with some margin of error to feel safer.
Hope this helps?
Cheers,
Ethan-
This reply was modified 7 years ago by
Ethan Timor.
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hey mate,
Without knowing more about your situation, can’t provide specific advise but generally speaking you may want to consider placing the funds in an offset account or a redraw facility. This way the funds will be available to you should you need it.
And, yes, reducing non deductible debt is probably a better option than reducing deductible debt.
Hope this helps?
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
The time between contract date and settlement date is a grey area which is why at least one insurance company offers free insurance to buyers until settlement date. We always go with that. Better safe than sorry 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
I think it’s called “how to buy a house for a dollar” and you can find it on eBay 😉
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
I don’t know these guys but this sentence caught my attention:
Apparently its Free but we will see.
It reminded me of th saying: “if you’re not paying for it, then you’re the product” 😉
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hi PT18,
Agree with Richard and Terry. I’ll just add the following:
Based on:
Current owner occupied home loan balance: $370k Available to redraw: $35k (so if I was to redraw all, it would make the loan balance $405k) Current balance in offset account: $20k
and:
Now, although current loan balance is $355k, I can get up to $430k when re-financing without incurring any LMI. This can give me extra $65k in cash.
Current property value is $540k – $550k, yes, I paid LMI on this property previously. Looking for IP < $350k.
The scenario I see is as follows (please let me know if I missed anything):
Current loan has a redraw of $35K and(!) an offset of $20K?
So funds available now are: $55K?
The current net loan amount is $370K, not $355K?
If refinancing with another lender at 80% of $540K = $432K so you’ll get $62K + $20K you have in the offset = $82K available to you = only $27K more than you have now, not $65K extra as you said?
Throwing away the LMI you already paid may not be the best way forward, I would consider utilising it by doing a top-up with your current lender. This way you’ll end up with more funds in your pocket.
This is all a general discussion. Need to look at your situation in more detail to provide a specific advice. Suggest engaging a broker (ideally one specialising in investments). With a good broker, you’ll be very happy you did! :-)
Hope this helps?
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
No, not in Sydney, sorry 😕
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hey mate,
If you’ll move to another lender, you won’t be able to enjoy LMI credit that was already paid.
You might want to top up with existing, ideally to the sweet spot that won’t require additional LMI paid due to credit. The top up should be done as a split and used to buy the IP so the interest on it is tax deductible.
If these funds aren’t enough to buy the IP, you might need to make some decisions regarding if and which loan should get LMI (most likely the new one, lower LVR).
Are you doing this all by yourself or got a broker to consult with?
Hope this helps? 👍😎
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
In our building we got a sparky to install the new ones. Don’t recall the cost but it definitely didn’t seem to be expensive.
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Reminder: meeting is tomorrow. Looks like it’s going to be bigger than the Byron meeting! 😍
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
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This reply was modified 7 years ago by
