Forum Replies Created

Viewing 20 posts - 81 through 100 (of 371 total)
  • Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    @ethantimor flick me an email on [email protected] and will gladly send you a copy.

    Cheers.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    @rob H yes thats right and you can borrow 105% in order to cover all costs involved.

    If you do have savings you now have the option of holding it back as a buffer in an offset account. This helps you pay less interest on the loan as it “offsets” the debt.

    Many other benifits in addition to the one mentioned, if done right.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Property Investor Network – Perth Meeting Monday 21st Nov

    Did a quick google search and came up with this;

    http://www.propertymeeting.com.au/perth-leader

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Thanks for the info!
    Is it necessary in this situation to have a 20% deposit (equity from my parent’s land)? Or can it be done with 10%?
    Thanks again!

    20% is required as any less is in LMI territory and the LMI providers wont do these deals.

    You could always get the full 20% and repay or offset the loan with the extra 10% you may already have. Swings and roundabouts really.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    If my parents were to agree to this, how would it work and are they only liable for the amount of equity they allow me to use (i.e. 10 or 20% deposit)

    20% deposit + 5% for costs can be covered by the vacant land security.

    If you select the right bank they will only be liable for the 25% portion.

    or are they actually liable for my entire loan if for some reason I couldn’t meet the repayments? I really just want to know how it would work and the worst case scenario as I don’t want to get my parents involved if it’s too risky for them.

    Depends on the bank you select but best to select a bank that offers a limited guarantee, that is only the 25% that parents put up in a separate loan split using land as security.

    My plan would be to refinance after 3 years and release their title.

    Good plan if you can pay of thier 25% and / or property rises in value.

    If anyone has any experience in doing this or advise regarding this that would be great!

    Yes, done plenty of these.

    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Is it easy to find a lender that assesses it this way?

    Yes.

    Could it work for multiple properties if we were to find the right lender or would we be better off keeping everything separate from now on?

    Yes can work for multiple properties with same lender.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Will it be a vacant block or will you construct a property/s as well?

    You will be taxed inline with what ever tax bracket the profits lift you into assuming you are PAYG employee minus any costs associated with the development.

    PPOR profit will be CGT free so only be taxed on the IP profit. If you can hold onto the IP property for 1 year you may be entitles to a 50% deduction on the CGT.

    Even better if you move into the new IP, assuming you are building a dwelling on it this could be CGT free.

    Seek legal advice and / or wait for @Terry_W to comment :)

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    @jambv Did a quick google search and came across the following which I found interesting and you may as well :)

    Queensland (QLD) Real Estate Fees, Agents Fees, Real Estate Commission

    Caution… it’s not what the agents charge you at the start that is important, it’s what they cost you if you use the wrong one! The official line from the Queensland Government is…. The law no longer caps the amount of commission an agent can charge for residential or rural property transactions this commenced on 1 December 2014. The deregulated system means you are more likely be able to negotiate with agents about their commission. This is the ‘official’ line. Compare the agents for your suburb including their commission and marketing costs COMPARE AGENTS…

    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    You will need to lodge a joint application with your friend to access the equity. You would also need to seek legal advice if you are going to be using these funds exclusively for your own use as your friend will be liable (called joint and several) for this debt if you default on the security the funds are borrowed against. Same applies to you if you default towards your friend.

    You will also need to be aware that with the majority of banks will assume worst case scenario that your friend will default on payments and you will be responsible so will be entered into the new banks servicing calc as the full debt and only half the rent. You may fail servicing as a result depending on your circumstances. You may be stopped in your track sooner than necessary as you move forward in your journey. Your friend would need to be aware of this as well if they intend purchasing more properties in the future.

    There are a couple of exceptions to the above with some banks. Speak to an investment savvy broker about this as it is important to “future plan” so you dont get any nasty surprises. There are a few good ones on here :)

    Can I ask why you went halves with your friend in the first place?

    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice. Reason: bit rusty on the editing options :)

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    @rex, let the figures guide you.

    What was the previous 10 years growth on the apartments you are considering v the house you are considering purchasing?

    I like to look for houses that I can add value to either via a renovation or even better (potentially) retain and subdivide or knock over and replace with multiple properties.

    Depends on how involved you want to get. Developing is not for the feint of heart but can be lucrative if you get it right.

    I have an eBook development course I am happy to email to you.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    What are my options?

    1) Am I able to renegotiate with the developer to redraft the contract to $340,000?
    2) Should I walk away and lose 5% of my deposit ($17,5000)?
    3) Should I still proceed to purchase property?

    @zen;

    1. Yes you can negotiate with the developer.

    2. No, its only a small shortfall (10k) so would not be worth forfeiting your 17.5k deposit. You can adjust your loan amount or tip in the difference from own funds which will be a few k at most.

    3. Up to you but I personally wouldn’t pull out for a 10k val shortfall if you where happy to proceed if it was a full val.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Purchase price was $500k for 4 x units loan for $530. Valuation came in at $475k

    @menunes That sounds like a xcoll loan structure. I would advise getting it restructured before proceeding with any subsequent purchases.

    We looked at the rental opportunities and made the decision for purchase from the figures.
    Taking up the equity on other investments has slowed us down for a while as we are “maxed out” according to the banks.

    Are you dealing direct with banks or via a broker as there may be unexplored options for you to consider to extend borrowing capacity.

    You can work with more than one broker and see who can get you a better valuation and better interest rates deals

    I 100% agree with Jamie. When dealing with professionals in the various aspects of property who are commission based it is only fair to treat them with respect and be upfront as well. I would also decline the business if I new I was competing with another broker as I could spend this time with people who are serious about engaging my services, which is for free :) until a deal settles and then you get paid 2 months later. If the shoe was on the other foot you would agree @jagsingh. Its likely if a broker is happy to compete against another broker or bank for that matter they are desperate for business!

    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    There ya go :)

    https://www.propertychat.com.au/community/find-new/1804767/posts

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    I attend meetings from another forum that are on a semi regular basis at a pub for lunch on the weekends and sometimes in the CBD during the week. There are some active developers and investors in the group as well as newbies.

    Im located in Perth so you would have to see what meetings are local to you and get a along and start connecting with like minded people.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Great spreadsheets @rick and @jamie.

    Cheers.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    So, my naivete is quite prevalent here. How would I go about finding a reputable broker, and what kind of payment/fees do a broker usually have?

    After doing some preliminary investigation with my family, we’ve discovered a rough borrowing capacity. But, yes, what steps should I take now?

    Thank you so much for your reply!

    I personally dont charge fees as lender pays me a commission for introducing someone to a new bank or arranging affairs with existing bank, if it suits the clients stated goals, both current and future.

    Distance isn’t and issue as I have clients all over Australia and many I have never met face to face. With modern technology these days its very easy if all parties play their part in the process.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Each bank applies there own formula to fixed rate break costs and it is tied in with the current variable rate so not possible to quote a break cost for the future as variable rates may vary come settlement date.

    Your assumptions are correct as the break costs should decrease the closer you get to the expiry date of your fixed term and likely variable rates will be on hold for the foreseeable future with a decrease more likely than an increase early next year IMO.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    “If you are going through hell, keep going” – Winston Churchill

    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    As Benny conotated to above it is of vital importance to engage a team of tried and trusted professionals to assist and guide you on your journey.

    A good start would be to engage a broker who is familiar with investment property financing. There are a few on here that can assist you and distance isn’t usually an issue with modern technology these days. A good broker who cares about their clients will guide you through the whole process and beyond as we are usually a well connected lot.

    Once you have established borrowing capacity which is the first step then you can proceed with an offer on your property subject to finance approval and building and pest inspection reports.

    In a nutshell dont go it alone when you have access to good people to make the journey a pleasant and successful one.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    In regards to the initial deposit, pay as little as possible. Often they ask for 10% of the purchase price. Make sure its refundable if you dont proceed with the purchase. I have held blocks of land for as little as 1k deposit.

    The remaining balance will be determined by what LVR you are intending or capable of purchasing at. If a 90% LVR and you paid 1k holding deposit then it would 30k – 1k = 29k plus the applicable stamp duty rate for your state.

    Im in WA so first home buyer would pay $380 in govt. fees only and a non first home buyer will pay $9,200 stamp duty on a 300k purchase. Stamp duty is payable at settlement and refunded to a FHB once construction loan is partially drawn at slab down stage in most instances.

    • This reply was modified 7 years, 7 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

Viewing 20 posts - 81 through 100 (of 371 total)