Forum Replies Created
Hey Novo,
There are quite a few lenders out there that offer 90% Lodoc even 95% however they usually incur higher interest rate. As v8ghia mentioned you will need a 2 year ABN for anything this high though.
I’ve did a no money down deal a few months ago and am just about to try and do one for myself cause I’ve ran out of capital[glum].
Richard or Terry might be able to explain them a little better but if you search ‘no money down’ deals on the forum it should come up with several different strategies.
The deal I did was for a member of this forum and she found a property under market value and was able to borrow against valuation rather then contract price.
Josh
Hey TMR,
That sounds like a great opportunity.
Most banks/lenders are very cautious with student accomodation as it resembles more of a commercial deal then a residential as it is basically a mini hotel. If you can service it on market rental you could use this rental however most lenders won’t accept increased rental income from student accomodation or ‘room by room lease’.Josh
hehe yeah I didnt think the price was very good (per sqaure metre) either but he was keen on it, was returning pretty good rental returns as well.
Not kinda security I’d do but there are a lot of strategies out there that investors use I guess.
Finding finance on one of these units can be quite hard at times.
Had a client come to me with one in Brissy CBD for $100,000 however it was only 20sqm which most lenders only allow units or aparments over ~44sqm…
We managed to find a lender for it however it was a very low LVR which meant he had to fork out a pretty hefty deposit. Securities similar to these almost always provide good cashflows however arent as felixible when it comes to finance and releasing equity as tradition residential IPs.
hope this helps….
Investor Finance
[email protected]I have a lender on my panel that will do 6 unit on one title. most consider it commercial.
Investor Finance
[email protected]What if you refinanced your first home to 95% and reduce your loan against burnie home and pay down some personal debt and then sell burnie property.
Refinance Launceston:
V: $160,000
M: $152,000 (95%)
refinanced amount: $90,000
pay down Burnie: $20,000
Pay down Personal debt: $27,000
remaining unlocked funds for future inv: $42,000 +proceed from salehow this sound?
would this work for you circumstances?Josh
Daniels right.
a few months of solid educating yourself and saving could save yourself from making some crucial mistakes and could save you a lot of money and headaches.
Josh
Investor Finance
[email protected]I think in south australia there’s a cooling off period after offer is accepted in which you can pull out if you like before contract is signed. I just had 2 offers accepted however didn’t take too much notice as I was definately going to buy them, unless building or pest inspection came in with devastating results.
Depends on what state….
joshua
Investor Finance
[email protected]hey Ivan,
I’m in a similar circumstance (early 20s and same income) and have just signed contracts on 2 properties. Everyone’s strategy is different, but what I’ve done is bought 2 cheap 3 bedroom properties,1 was $110,000 and 1 was $102,000.
Both have good rentals ($150p/week each) and tennanted till mid next year.
Both properties have potential to do minor improvements to them and add plenty of equity.
To get into one of these cost me about $10,000 (deposit+fees/charges).
I’m going to spend about $5,000 on each and then extract the equity and go buy another one or 2 hopefully.
Good Luck Ivan,
Joshua
Investor Finance
[email protected]thats rite, if you find out who is on your banks panel of valuers some of the brokers on here may be able to tell you about some background on particular valuers and their experiences.
another thing to mention is there are a few different types of valuations …
Desktop or EVR (electronic valuation report?)
Kerbside
and PhysicalIf your property is renovated and improved inside you’d definitely want a physical valuation so they come and inspect throughout the property. If the property is really good front yard and exterior and a not so good decor inside you might be better by having a kerbside valuation.
Investor Finance
[email protected]The easiest way is to increase the limit on your existing LOC through your current lender. They will however have to revalue the property depending on the valuer they use depends on how conservative the valuation will be. When I got mine done I did a bit of research and had supporting evidence to support the value I believed it was worth and gave that to the valuer.
Investor Finance
[email protected]WOW thats well worth while.
I’m a subscriber as well to baycorp and I thought it was just handy know when my CRAA check was getting done through the loan processing.
Good work hope all works out fine.
Joshua
Investor Finance
[email protected]Chris,
I think you can get a variation authorised which allows your payroll to adjust your tax however I think you need to get an accountant to calculate tax deductions such as depreciation, interest etc and then submit the variation. But yeah Terryw is rite you can get into a bit of trouble if your calculations are wrong, thats why accountant might be better to organise it for you.
good luck
Josh
Investor Finance
[email protected]Thats the one Richard. [biggrin]
yeah your rite APerry they have been round for awhile … just had a new product that I was refering on. thank mate
Investor Finance
[email protected]To get a trust setup isn’t a difficult process just need to find one a solictor that knows what they’re doing. Most Trust take at least 3 weeks for most solicitors but can take up to 8 depending on how busy they are at the time. Once the solicitor has setup the trust, it then needs to be stamped by the state revenue office. Lenders won’t even look at it if it hasn’t got this stamp (usually page 2 or 3 on in the deed).
Just be careful when getting your trust set up cause not all trust are same and don’t suit all situations. Each solicitor has different clauses and different wording, so it pays to do your research on the person writing up the trust to make sure its suits the purpose you intend it to be used for.
There is a company that I have dealt with in NSW called Chan & Naylor who have developed a Trust designed specifically for the purpose of holding property called the ‘Property Investor Trust’. I believe it similar to a unit trust and actually allows you to take certain losses out of a trust which is one of the negatives of discretionary trust (can’t claim losses against personal tax returns). search their name in google to get info off their website.
When it comes to some of your questions about how to structure I cant offer any advice as I’m not qaulified to do so [hair2].But I recomend you speak to someone about this. I’ve got a few different contacts that I’ve had clients deal with in the past. Email me for details if you like.
If your going for your first property it might be a good idea to get the structures in place first as it is difficult and pricey to transfer ownership later on.
To talk about pros and cons would be a whole new topic on its own as it is could be a lengthy discussion.all the best
Joshua
Investor Finance
[email protected]I agree with all the guys above however just released recently is a lender that will go 95% LODOC!!! its good however you do get stung on the rate which is 9.24%. It is slightly less if you have 2 borrowers and one is full doc.
Its a good product however high rate and high LMI.
something to think about.
Joshua
Investor Finance
[email protected]Any transfer of ownership on title incurs stamp duty.
most of my clients purchase properties in trust with a corporate trustee and themselves as directors of that company for asset protection and tax minimalisation strategies.
all the best
Joshua
Investor Finance
[email protected]Im pretty sure you wouldn’t be able to either however to be absolutely certain maybe a quick call to the state revenue office will confirm the answer to that question.
All the best
Joshua
Investor Finance
[email protected]Happy Bday mate,
I’m only mid 20s but wish I could know what I know now when I was 18.
good luck
Investor Finance
[email protected]
