Forum Replies Created
Guys, how do you get the lenders to take your valuation? even if they are on their panel.
I recently got my own valuation, and three lenders all refused to look at the valuation even though they were on the panel of each one. I basically wasted my money as the lenders insisted on doing their own anyway?
HHH
On the original topic, I for one will be sticking around. I really owe a lot to this forum and the somersoft one.
For newbies they are an awesome resource of information. I only own one IP so I don’t as yet have a lot to offer myself but hopefully in the near future I will also be able to help some of the newer people.
I wouldn’t get discouraged about having slow times on the forum. We all go through busy times in our life. Currently I am finalising a purchase of my first business and have madly been getting everything organised over the last few weeks. This has meant that I don’t get as much time to spend as I did initially, but I still find the time to check out the lastest posts.
So I guess guys, just because we are not posting doesn’t mean we are not here.
So thanks to Steve and the all you guys for providing such a supportive and informative resource for those of us that share a common passion.
Thank you all very much – and please, keep it going.[biggrin]
HHH
Good one Acey!
I reckon that really stinks.
I too was suspicious when they posted on somersoft and here.They come in here selling their services, praying on the trust of the good people on this forum.
Well, looks like things turned out for the best, as they have just shot themselves in the foot.
Who knows, I might tell my friends about these people, just perhaps not quite the glowing reviews they had hoped.
Good work Acey!
HHH
ok, you are sitting in your rocking chair on the porch with your life partner. You can either be happy and rich knowing you possibly spent $1000 that was not needed, or do you want to be in poverty wondering how rich you might be if it weren’t for that 1 in 10000 lawsuit?
I know that second thought is something I would pay a lot more than $1000 to avoid!
HHH
Hi
Why will this be the last 100?
HHH
Hi there, I am no mortgage broker, but there are some good ones on this site who I am sure will comment soon.
I will offer some comments as I have just done this myself.
The main factor will be the type of business. By this I mean either a freehold where you are purchasing the business and the property/building where the business is located, or whether it is just a lease, where you are puchasing the business only and you will be paying rent to a landlord.
If it is a freehold, depending on the property type and location, you may very well be able to borrow upto 70% of the value of the property. Some lenders will not lend for leases only at all.Another issue will be the figures for the business you can show the lender. This varies from lender to lender. Some will get very nosy and want to see good solid figures for upto 2 years, some 6 months, and some you may be able to get away with just saying the money is for investing.
So, for freehold, you may be able to borrow up to 70% of the property, then you will still have the cost of the business on top. For purely a lease, you may get upto 45%. You can get more than 45% but it will cost you in terms of interest rates.
Basically, I have found it to be a major drama convincing anyone to lend me the cash for a leasehold business. Especially since the current owners did not keep very good records.
You may very well find that your 140K will get you a 140K business (forgetting other costs to keep things simple) – which really bites the big one, since that 140K would buy you a lot of real estate.
Feel free to PM me if you have any specific questions. Remember, I am not a mortgage broker, just someone who has just gone through what you are looking at doing. It was painful, but I got there eventually. I will be glad to offer any assistance I can.
Dan
HHH
Hi all
I will be shortly making the move into wrapping and would like comparisons between Steve’s and Ricks’ wrap packs.
Cheers[biggrin]
HHH
Hi Steven
thanks for the reply. Unfortunately, i am committed to these lenders now.. which is a bugger, I was looking at St George, but they would not accept a valuation I got myself. They wanted to do their own…[blink]
I posted to another thread, do you know how I go about trying to get some of that LMI back? The other thread was talking about proving a higher valuation within 6months.
I believe they have undervalued my IP by about 30-40K, making me go to a 90% LVR – will another valuation be enough to get me back any LMU? or do they have to convince them selves somehow?
thanks
HHH
Hi guys, this thread is interesting for me as I am in the middle of refinancing.
My first problem was they undervalued my IP by about 30-40K. They gave me a val of 190K where smilar properties are on the market for 220-230K.
Secondly, due to the low valuation, I had to go to a 90% LVR. That is not all, now they are making me pay the LMI up front, and won’t just add it to my loan (I posted this particular whinge on another thread[hmm])
So what will lenders accept if you are to “show” the extra equity within the next 6 months?
Do they need to get their own valuation or can I get one and show them? How does one go about trying to get some of the LMI back?
thanks[hair2]
HHH
Hi
they are citibank and Bank of Queensland.
My broker said ALL banks are doing this now!!
I really want to name these brokers as they have screwed my around like you would not believe.
HHH
I assume you meant “+ 15000” in your example?[cap]
If that is the case then cool, I would not have thought so as the money could be gone tomorrow, where as “real” equity in a home is not that easy to “lose” – the lenders risk would be increased if they treated the cash sitting in an offset account as equity.
It seems different to me than savings as typically those savings would be taken by the bank as say the deposit, yet the money in the offset would be staying, potentially even spent?
HHH
Hi guys.. something I am not clear on,
if you have cash sitting in an offset account, will lenders consider this as equity? or will they only look at the principal you have paid?
thanks[biggrin]
HHH
Hi guys,
I am too having issues with valuers.
I estimated my PPOR to be worth 330K (and I thought conservative) but it came in at 295K.
I am trying with a different lender, but this time I went an organised my own valuation from a well respected valuer on the bank’s panel.
This new lender is refusing my valuation, despite them being on their panel!!
What can I do guys?
thanks
HHH
First I heard of it also.
I am a fan, so will give some serious thought over the weekend.
I have a feeling I won’t learn a great deal more than what I have already picked up from his books, however I am sure it will be an enjoyable time and great to hear the man in person.
HHH
Hi Julia and Glenn
I will check them out!
thanks for you help.
Dan
HHH
Like most things it totally depends on your situation and what you goals are.
If one’s aim is to pay down their PPOR, then having in an offset account is perfect. It is the same as paying of actual repayments, but it allows you to take it with you should you decide to move onto bigger and better things and make the PPOR into an IP.
Also as mentioned above, it could also be used as an emergency fund.
Then on the other hand, depending on interest rate and the amount sitting in the offset, you may well be better off investing it else where.
… this fence is getting a little uncomfortable
[biggrin]my two cents..
HHH
Yep, this confirms what you said previously.
Thanks heaps again, you have made me a very happy camper![biggrin]HHH
Hi Steven
Thanks heaps for your reply. I actually read another answer you just gave on another thread, along similar lines.
You have confirmed my thinking.
Very much appreciated.
[rolleyesanim]
HHH
Hi Sis, yeah maybe you didn’t follow. Sorry if I have confused.
Credit Card would be no good as I want to use the LOC for investment deposits/costs etc, and so I don’t expect to be able to pay them off in any short time period.
I only want to start with a small LOC as it is non deductible and has a little higher interest rate – plus it always works against you from a servicability side even if you have not drawn on it.
Have I lost anyone else? I am happy to clarify any specific points as I would really appreciate some advise.
thanks again
HHH
Hi James
Could you please explain more on how you have it setup? I just can’t for the life of me work out if a LOC or an offset would be better. There are pros and cons to both.
I understand only the redraws would be tax deductible, but a deposit on an IP is certainly a large redraw!
How could I achieve the same with an offset account. Redrawing from here is not as good as there is nothing to claim – as it is already your money.
HHH
