The issues around "over pricing", or "under valuing", are not peculiar to NRAS.  It's a consequence of the way most new development investment property is sold- via marketing firms, and valuers subsequent attitudes to that ( whether warranted or not)Developers pay marketing firms very large fees/commissions to sell their stock, because they want…[Read more]

I dont think theres anything to report here… NRAS properties are rented at 20 or 25% below market rental, and that entire "loss" is able to be deducted. Theres nothing to indicate otherwise in any ATO literature. So unless someone can demonstrate otherwise, claim the entire loss as a deduction. No need to assign "proportional" losses, in line…[Read more]

There's no mention of a "discounted" effect on neg gearing , proportional to the relative NRAS discount, anywhere on the ATO website, or in any of the ATO's NRAS literature.  http://www.ato.gov.au/businesses/content.asp?doc=/content/00179876.htm&page=1&H1The ATO doesnt appear to discriminate between NRAS and non NRAS investment properties, so…[Read more]

quick update… saw NRAS being discussed on Your Money Your Call a few days back- where the NRAS proponent spoke in very broad (and inaccurate) terms about NRAS.  Amazing. She said that loan applications are presented to banks just like any normal investment property application, so loans were easy to find for NRAS.   I wont name her, because sh…[Read more]

Markymarko- I really believe its a mistake to allow your broker to "try" for 90% LVR with St George.  Ive said this before and will say it again….  if the NRAS allocation belongs to one of the Approved Participants Ive talked about previously ( Ive attached the list below again), St George Westpac and Rams do 70% without LMI- 85% with LMI.  No…[Read more]

euro73 wrote:
Who does 90% Richard?   There's not one single lender with an official policy to 90% LVR.   Westpac's( and St George and Rams)  policy is 85%. Firstmac's is 80%.  Bendigo Adelaide's is 80%.  Of course,  I know some deals are being done on a case by case basis, and Ive stated that several times in my posts,  but Im posting informat…[Read more]

Who does 90% Richard?   There's not one single lender with an official policy to 90% LVR.   Westpac's( and St George and Rams)  policy is 85%. Firstmac's is 80%.  Bendigo Adelaide's is 80%.  Of course,  I know some deals are being done on a case by case basis, and Ive stated that several times in my posts,  but Im posting information on the gene…[Read more]

Jamie M wrote:

euro73 wrote:
PS – no need to cross, if you have enough equity in another property to provide 20% plus costs.  You would simply add a new split to your existing mortgage, for 20% plus costs. Set it up Interest Only , as its being used for investment purposes. You would then get a stand alone NRAS investment loan with one of the…[Read more]

onthemoney wrote:
Thanks for an excellent post euro.

In a nutshell Tony – I'd be using Westpac, St George, Rams or Firstmac for NRAS for the relevant NRAS Approved Participants models, as outlined above.  At best, other lenders will only do NRAS on a case by case basis… and its terribly inconsistent.  I dont understand why people try to &…[Read more]

You should double and triple check with your lender  about this 90% approval they are promising. Its all well and good for them to say they will offer 90% LVR, but  they aren't offering you anything more than a pre approval at this stage, and they are not obliged to offer unconditional approval later on down the track… have you been clear w…[Read more]

onthemoney wrote:
Anyone thinking of buying an NRAS property I am offering a complimentary NRAS PIA (Property Investment Analysis) on any property you are considering buying. NRAS is now widely accepted and lenders policies are changing daily to accommodate this scheme. Here's a video demo: http://www.screencast.com/t/plgkyshbwPj If you would…[Read more]

euro73 wrote:
no no no…. don't go down this pathFor starters, loans for purchasing NRAS property are only  available through a limited number of lenders.They are generally available to 80-85% LVR maximum.   Anyone recommending a 105% loan ( which I assume is the 105% Mortgage House product – which isnt available for  investment anyway) for an…[Read more]

no no no…. don't go down this pathFor starters, loans for purchasing NRAS property are only  available through a limited number of lenders.They are generally available to 80-85% LVR maximum.   Anyone recommending a 105% loan ( which I assume is the 105% Mortgage House product – which isnt available for  investment anyway) for an NRAS  inve…[Read more]

sorry Mike, I meant a difference of $300 between St G and the Rock….  $2450 v $2142

Thats good information Mike- thanks.Seems as though The Rock has a pretty competitive product. In the scheme of things, $300 or so in set up costs is pretty inconsequential, if they have superior borrowing capacity. Correct me if Im wrong, but I believe St G is priced at 7.80% and The Rock is at 7.89%?  Not much in that, either…

OK. My understanding was that the Rock has 70% LVR, no Personal Guarantee and more generous borrowing capacity than both St G and NAB…. and an app fee of $600. That would seem to make it a very good product in a side by side comparison. Is that not the case?

MikeF wrote:

euro73 wrote:
Richard/Mike.Pro's/cons of those three lenders products, versus the Rock and St George?

Too many to list here in detail and depends on your individual situation but here are a few; Minimum net SMSF Asset Position – CBA require minimum $300,000 Variable Interest rates – vary 7.67% to 8.59% Monthly/ongoing fees -…[Read more]

keiko wrote:

euro73 wrote:

keiko wrote:
Bloody valuers, I would Keep it with the same agent, she sounds like she will work hard for you to get this sold, the agent may be able to make the change to the other properties that she sold by logging onto RPData and making the changes, that is as long as they have sold and are not still under…[Read more]

Richard/Mike.Pro's/cons of those three lenders products, versus the Rock and St George?

Thats useful information Sue, but it's only information about QAHC.   As I've stated in other posts, QAHC is not the only NRAS Approved Participant whose model has been approved by lenders such as St George, Westpac and Firstmac, or approved by Genworth LMI….  so Id like to talk about the other models too, so we arent being seen to be re…[Read more]