Forum Replies Created
Thanks Rob
But I’m not talking about units(I wouldn’t buy one). We’re talking a house on a decent size block of land in a high capital growth area. And this was in the middle of the boom last year.
The valuer in question for CBA actually valued it below what I payed for it months earlier in a suburb that had 60% capital growth last year! And I gave him at least 10 comparables for 30k higher. They did it the day before settlement too so that I didn’t have time to organise another val.
There isn’t an explanation really other than that the CBA instructed the valuer to value down as they were p…d off that I sold another place 2 weeks after purchasing that was cross-collaterised with the property in question.
Those who have been through this know what I’m talking about.Nevertheless I can’t complain because it was a great learning experience.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]No worries!
And welcome, now how about posting their details so we can have a look ourselves or do we have to e-mail you first?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]I totally agree Pisces.
Up here in Brisbane a certain Valuation firm is used by the CBA on most refinances I see, and the majority of the time it a extremely conservative val.
I have been on the recieving end of one from this firm, and that fact that the CBA is using them more and more would suggest that thay are being instructed to value down.
The fact too that this particular firm is reluctant to meet the client onsite, or discuss any relevant past sales records with the client makes it painfully obvious.
Simple solution though, just refinance away to more sympathetic lender who uses true valuations for lending purposes.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Excellent Post Afloat
Looks like you have throughly done your research, and certainly something to put in the backburner for the next European trip.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Quote:Originally posted by Lister:I’m concerned that you are involved in Mortgage Reduction but you do not have a basic understanding of stamp duty? When you build a house you pay GST on the construction, you only pay stamp duty on the land value ![quote
Lister
Thank-you for your comments, I’m pretty sure I understand Stamp duty but thanks again for your concern.
Perhaps you misunderstood, I was under the impression that with people who are not builders, the company would be happy to provide a builder for them, hence they would settle on a full property at the end, and hence pay stamp duty on the full amount. If they were to settle on the land prior, then yes they would only pay stamps on that.
Perhaps you could provide us with further details for us to make a full evaluation, before getting aggressive. Otherwise your first post does look blatantly like an advertisement as you have not even provided the relevant company’s details for us to check it out for ourselves.
Krazystyler – point taken but don’t you think “Email me if you want to know more!” looks pretty much like every other Get-Rich-Quick ad in the newspapers?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi 1Hot
I think the question was though, about the bank disclosing the valuation to their client, not the client getting a copy from the valuer.
If the bank was open and honest through the whole process, and wasn’t ‘influencing’ the valuation in conservative manner(especially when refinancing) they would have no trouble showing the valuation to the client.
You are correct though in saying that it’s the bank employing the valuer, not the client, and therefore the valuer has no obligation to the client.
You can let us know, are there valuers out there who deliberatly value properties conservatively and hence get more repeat business from the banks?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Wallflower
I think what you are talking about is cross-collaterising the two properties where you don’t actually draw out the equity from your PPOR.
The bank would look at the total LVR over the 2 properties and if it’s 80% or under they will loan you the full amount of the new IP.
There will always be some debate whether this is the best strategy, or to keep all loans separate. Personally gone are the days for me when the bank has got me by the b..s and I have to go begging cap in hand to ask for to borrow more cash and refinance the entire cross-collateralised mess.
It’s a matter for choice really and your individual circumstance. Don’t expect any favours with the valuations when you want to break the securities apart though.(You can tell I’m having an angry day with the banks!)
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by Pursefattener:My banker at the CBA gives me a copy of the valuation that the valuer has prepared and makes no bones about it.
Pursefattener
Hi Pursefattener
You are extremely fortunate to have a CBA banker like that. I suggest when he moves, you move with him.
We always have our valuations available to our clients. Even though we’re employing the valuer, the client is paying for the val so we believe it’s theirs. As we’re showing them how to achieve a maximised val, everything is above board.
The big banks not making the vals available to their clients is appalling. And it smacks of dishonesty when a val comes in under purchase price and the bank ‘keeps quiet’ about it and allows the client to purchase the property anyway.
I have even had a circumstance when a valuer was instructed by the CBA to give a really low val(less than what I payed for it), after I released a security when 2 properties were cross-collateralised. And this was when the suburb had 60% the previous year!
Needless to say I refinanced. As you can tell the CBA is not one of my favourite!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Quote:Originally posted by wayneL:>>
Geronimo, are you refering to the chain setup over there? I understand this can complicate things, but I have some very close friends who are living and investing there at the moment(Basingstoke area)…they have mentioned this, but it hasn’t held them up too much. They have done exceptionally well.Hi Wayne
Yes I was referring to their chain gang/setup. Just had a friend who waited 8 months and then the deal fell over. I guess it depends on how many in the chain.
As for it being relatively easy for Aussies to invest in the UK, most importantly, what is the max LVR an overseas investor can borrow?
With the exchange rate, you wouldn’t want to be putting up too much cash?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Interesting
Why don’t you set up a Buyers Agency up over there?
I have lived in the Uk and from what I can remember it is a long very complicated process in buying a property (not to mention it is 12000km away) over there.
These prices must be leasehold to be that cheap too? Still sounds interesting though if you can find a good area in Manchester, which is where all the police car chase shows on TV come from?
Just look at the Oasis band, imagine having them as tenants? Scary.I don’t think it’s a matter of investors keeping quiet about it, more that most forumites are Aussies and there are only so many hours in the day to do research.
On another point though, from what I saw when there, high LVR finance deals are a lot more common that here.
Let us know how you get on.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Why would you want to settle on the full package and pay max stamp duty?
Would it not make more sense to settle on the land prior to the house being finished so you only pay Stamp Duty on the land component?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by karinya:If anyone is aware of a company or groups of people that I can talk to, I would appreciate any feedback. Cheers Karinya
karen jacobsen
Hi Karen
And welcome. I have been investigating a group in Brisbane called Cashflow Programs, who effectively run small seminars teaching people about Lease Options.
They basically match up the investors with the tenant, and so far everything has checked out ok with them.
Why not give them a call and see what they can offer you? Make sure you get a good solicitor though to read over any documentation.
http://www.cashflowprograms.com
Or alternatively, if you have a good income, may I or any other broker on this forum help you with 100% finance? It will be cheaper for you than a Lease/Option.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi George
Couldn’t get onto their website, can you check that address?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]A question for all you spotters/bird dogs etc.
Aceyducey mentioned licenses, although I would of thought over in NZ as with here you don’t need a license if you’re tying up the property and onselling it to an investor for a fee.
Do you guys mind if I ask if you’re licensed buyers agents or apply the scenario above?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by camder:This way was chosen because we are now require to paying the least amouint off per week BUT we will be also paying our XS rents into the loan to reduce the debt.
Spot on Camder,
One thing to remember is, just because you have an IO loan doesn’t mean you are not able to pay down the principle , it just means that your minimum obligation is the interest component.
For this reason alone we believe that P&I is too restrictive as it reduces your available limit to redraw later on to invest again.
Personally I would prefer to just redraw the available funds rather than go back to the bank and ask for an extension.
Steve – when you say you pay down the principle on an IP, I’m assuming only after you have no more PPOR debt?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Keith
I would suggest to keep looking though, and consult a good financial planner show who can show you secure investments with a better return, and a shorter term than that.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]A few more basic ideas:
1. Do a few property trades ie. buy and sell for cash. This will allow you to put down a slightly larger deposit on that next IP and the banks will be a little more comfortable.
2. Draw out equity and invest in alternative cashflow investments(a good financial planner can show you a few) that return more than the bank interest on the loan thereby creating surplus cashflow and increased servicibility to go buy another IP. Note: Not many lenders here will accept this towards servicibility
3. Wrap or Lease option an existing IP to increase cashflow and servicibility.
Just my 2 cents.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Aaron
The standard is 1% but you can agree on any amount with the other party. Pretty much as with a standard contract.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi
I think it is ACR, but 7.25% ain’t that flash, and 8% is even worse to tie up your funds for 5 years!
Find a good accountant or financial advisor and they can point you in the direction of secure investments with a better return than that.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Terry
To save yourself a lot of unnecessary e-mails/phonecalls, can you post some general info on what you are able to do for Australian Investors who wish to purchase IP’s in NZ.
Some general info on LVR’s, max Int only terms etc. would be appreciated.
Regards
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]
