Forum Replies Created
Are you sure no-one will touch you in Aus? Imperfect credit isn’t the end of the world – some lenders will still provide finance if your credit record isn’t perfect. There even some lenders who will provide finance for discharged bankrupts from day 1.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Make an offer with (ideally 14-21 day) finance clause which will give you time to seek finance and hopefully gain approval.
You would never get full unconditional approval without a contract of sale – a pre-approval just helps knowing that the lender *might* give you finance but it’s never 100% certain until all their boxes have been ticked.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Not automatically, no. It certainly contributes towards your serviceability but doesn’t mean that if a property is CF+ automatically qualifies you for the next IP.
From memory, the last time I did some modelling as to what gross yield you need to start contributing towards serviceability it was ~9.5% so would need at least that yield and then some to start contributing to your serviceability with the bank.
There’s a lot more taken into consideration then the income you receive from your investment property as to if and how much the bank will lend you.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Same here, clients all over. Skype, email, phone, text message, in person – whatever suits the client with their preferred communication method.
Think average loan size too per location – Sydney’s average would be a lot higher than Adelaide’s.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Hi Kerky, can’t really recommend any reading material sorry.
How I work it is define my end goal so, for argument’s sake, that might be an income of $100kp/a from investments – what will I need to get there? Through the power of compounding over the years what avg yield and CG will I need to get there? LVR, portfolio size?
This is only a very high level view but gives something to work towards with the other considerations.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Hi Kerky, it’s a very fine line between not acting due to analysis paralysis or acting just for the sake of it. As I’m sure you’re aware, a good decision needs to be made! But it looks like you’re taking the right steps.
Looking at your figures it seems you want to keep your LVR around the 80% mark? Have you thought about venturing into LMI territory? That may give you some more options.
Sounds like you’ve got a rough plan already but need to firm up the details. Reverse engineering is always good – ie “I want a $5m portfolio in 10 years time at a LVR of 50% that has a 6% rental yield” so in order to achieve that you will need to purchase X amount of properties that have a price point of $X00,000 with avg CG of X%p/a and gross yield of at least X% then you find the areas and properties to suit. I find that can help with the analysis paralysis.
As corny as it sounds, having a good ‘team’ on your side helps too – a decent accountant, solicitor, broker (slightly biased there!) that can help guide you along your way.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
After.
If you wish, make your offer subject to a building and pest inspection if it’s not already in the contract.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Why Latrobe or Bluestone? Having those as the options leads me to think there’s something out of the ordinary with your daughter’s situation such as adverse credit.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Only from the other side.
When I worked in lending for one of the banks I would often see people with these kinds of loans. They’d get stuck in a trap with them – not even living week to week but living one week in advance. Something would happen, they’d borrow the money with circa 30-40% interest rates and use their money to repay the loan but then leave themselves short and having to borrow money again digging themselves deeper each time.
They’d then go to the bank to get out of the hole they’re stuck in, but unfortunately more often than not, the bank was unable to assist for various reasons.
I’ve come to detest lenders and loans like these. They don’t do anyone any favours.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
I would avoid the seminars as there’s usually a hidden agenda and the information can be very biased.
I find the greatest source of information to be the forums, this and the other one. Plenty of posters asking great questions and experts answering them.
I’d also recommend surrounding yourself by like minded people and those who have ‘been there’. Depending on where you’re located there’s quite often meetups you can attend where it’s just a social gathering for a chat.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Sorry to hear about your situation – it’s a tricky one.
I also live in Trinity Park and have seen your property on and off the market for a little while. First up – any reason you picked an agent from Redlynch to sell the property? I’ve wondered this as I drive down Reed Rd what would motivate someone to chose an agent from Redlynch.
Being in a gated community can be a turn off for some people, there is the perceived security but from what I’ve heard from people living there, that can make them a target too. For me the main turn off was when I was looking to buy was the body corp.
The property itself is on a large block, but I wonder if there’s much demand for dual living? If I was shopping in the $800k price point I would be more drawn to a waterfront place in the Bluewater estate.
Have you received feedback from the agents as to why there hasn’t been much interest? With the place being empty it would be harder for someone to visualise living there, looking into staging the property may be an option? I see also there’s no open homes scheduled either. I think holding opens may assist as it will get people in the door and what their $800k would buy them.
As a whole, the market on the Northern Beaches is starting to really pick up with confidence rising and I think there will continue to be gains for the foreseeable future.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
The majority of the time the bank val will come back at the contract price for a purchase. If it were to come in higher (or lower) the bank would take whatever is the lowest.
RE using the real estate investar to dispute val – in a word, no. After settlement you could request a full val but unlikely it will change too much unless you do something to the property ie renovate as by purchasing the property at that price, you are setting market value and unlikely the valuer will vary it too much unless there’s supporting evidence to do so.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
To echo Jacqui – I’d be concerned about having all lending and assets with one bank. Eggs and baskets come to mind.
In this particular scenario you are the one with the power with the substantial lending amount. In saying that though, I received an email from CBA this morning saying “We have also reduced pricing discounts for Investment Home Loans…..Discounts are still available for Owner Occupied lending”. Banks are generally more aggressive with pricing new to bank lending as opposed to existing lending unfortunately.
All you can do is ask. I wouldn’t be too concerned about damaging the relationship as they don’t seem to be. Present them with interest rates you would get if you were to move to another bank and ask for them to match and if they don’t threaten to leave. They may realise the complexity of your structures and may call your bluff though. If they do then it’s up to you on how to proceed.
As a guide, I negotiated 1.25% recently for a client who had over $1m lending and <80% LVR. But, this was before the change in pricing.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Is there a reason why there’s not been much CG in the past? Is there or will there be anything happening in that suburb to help with future capital growth? Any infrastructure investments or developments?
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Ha, all good. I actually wrote this one first in response to your post then thought I may as well post it in the other forum that shall remain nameless ;)
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Hi Bangers, just saw this sorry.
Not really unfortunately. The afternoon tea was pretty much 2 hrs of fluff going over what has been done already with nothing new said.
A summary of the notes I wrote:
Total size is 340ha. There will be a 33ha artificial lake and a 40ha ‘island’ that will be the main resort/casino area. The whole development will be flood tolerant and has been driven by ‘impact avoidance’ where they want to impact the local environment as little as possible and in some parts leave it in a better state than what it is now.
The EIS has been approved (in record time apparently) and now they’re negotiating the casino agreement at a state level (no federal involvement). After that it’s capital raising and then design. They said best case scenario is approval and start post wet season 2016. (I’ll believe it when I see it).
There’s been 230 submissions in response to the proposal – 40% supported the development and 40% supported with buts. All these submissions can be viewed on the co-ordinator general website.
They project the population to be 300,000 by 2036 but the treasury expects lower.
They’re waiting for the EPBC (Environment Protection and Biodiversity Conservation act) to be signed off at a ministerial level.
Capital for the project has not been raised yet, they’re waiting for more certainty.
They’re building the Aquis brand within Aus for more brand recognition. There’s a new arm of the Aquis brand which is Aquis Entertainment and they’re sponsoring a footy team (forgot to write which code).
There’s the expectation of a lot of ‘me too’ followers once (if) this is built so will act as the anchor point for a lot of new developments.
Hopefully this helps a bit :)
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Then I will be ditching my $5000/year policy (is this normal!!!?)
Yes and no…. When I first bought my PPOR here I was hard pressed finding insurance for under $10kp/a (in a red flood zone) and was almost a deal breaker. I was then able to get building and LL insurance with EBM first of all as was going to be IP and insurance was about $2.5kp/a. Ended up moving here instead and got insurance through RACQ for about $2,600.
Ha, let’s hope you don’t need to use that spare bed yourself!
Will do, attending an afternoon tea with the Aquis people tomorrow afternoon so hopefully have a bit more clarity on where that’s headed.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Ha, if only! There’s been a bit of movement and action but probably not long enough for it to start noticeably impacting prices!
Sorry to hear about your house getting trashed. Hopefully you had insurance which then paid for a cosmetic reno. Was the bank val done recently?
Good news about the Mr Gravatt place though. And congrats on the new purchase, with 5 bedrooms you will have room for child #3 now!
I wouldn’t call Edge Hill a looser yet, things are now slowly on the up.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
To add to Terry’s post too, which I forgot to put in mine is the lending of cash behind the scenes. I have one client at the moment who is looking into JV’s for small scale developments and one scenario that is being entertained is that the cash partner of the deal lends the money to the JV/serviceability partner and all lending in done in their name (ie trust) which makes it a bit less complicated.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Have a chat to your accountant but from what I understand it can be apportioned.
Take into consideration though the wider implications such as impact on CGT exemption for your PPOR, insurances, having a boarder vs tenant as well as other things.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
