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Sounds a bit fishy and problematic. Why is the guy (your client) happy to forgo $150,000?
Marty McDonald | Mortgage Experts
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Phone MeHi,
If you are looking for non bank / the loan based on end value type lenders I know a good broker in Brissie. Gavin Baker.
0431 047 035Let him know I sent you.
Marty McDonald | Mortgage Experts
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Phone MeRichard?
Marty McDonald | Mortgage Experts
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Phone MeQlds007 wrote:Just had a small development of 6 units approved only yesterday on Lodoc at $1M + so they are still around.Hey Richard,
Care to share which lender?
Marty McDonald | Mortgage Experts
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Phone MeIf you have had the funds in your account for a while you could look at a slightly higher lvr loan up to a maximum of 95% that way showing the lender you have the funds required for stamp duty etc. With the price $70k the difference in lmi costs won’t be huge.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeHi,
I would suggest it would work something like this…but I am not an expert here.
60%-70% of freehold value + some lenders may lend an additional say 50% ish of business value based on independent valuation which would normally be say 3 or 4 times annual profit.
If you have additiional security such as a home with equity they will want a mortgage over that as well no doubt.
Marty McDonald | Mortgage Experts
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Phone Me– Two or 3 different lenders. Complicated but doable.
– Finance against other properties if equity available. Good option if possible.
– Do as commercial loan. Ok option but more expensive.
– Widebay building society say they do 8 on one title but I’ve never tested it, rate is a bit high too.Marty McDonald | Mortgage Experts
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Phone Me85% no mi with ing not possible unless main income earner is 2 years in job I think from memory. Westpac fine. Citibank should also be fine as long as property in good location ie Sydney metro.
Marty McDonald | Mortgage Experts
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Phone MeIt may not be impossible. Are you going to contract to one organisation? Will they be your only source if income? If so it may be do-able. I did once recently only 1 month self employed ang got 90% lvr $680k loan approved no issues. It really depends on your contract situation.
Marty McDonald | Mortgage Experts
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Phone MeI should clarify I meant she would need some equity in the property is you were borrowing 100% + of your half share of the property.
Marty McDonald | Mortgage Experts
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Phone MeHi,
You could purchase 50% of the property from her at current market value and share all ongoing property expenses. Say property is worth $300,000 (based on say the average of 2 independent valuations which would cost around $300 each but worth it for both your sakes) you pay her $150,000.
On the loan side of things you would probably be best to get 2 loans with you both guaranteeing each other. I have done a loan loan like this but was pre new lending laws and the GFC so make sure your broker or lender is on top of the current lending policies/ lending options before you get too far into it.
– your loan would be for say $150,000 + stamp duty and your half of legal / bank fees.
– her loan is a bit tricky to work out not knowing the current debt amount. She would need a bit of equity in the property if you are borrowing 100% +Things to consider:
– selling her half would trigger a capital gains event for her
– you would have to pay stamp duty on your half
– may be some ongoing issues for her claiming interest deductions which need to be considered when arranging loans.
– need to have some sort of agreement drawn up to cover all eventualities such as death, financial hardship, forced sale etc.Marty McDonald | Mortgage Experts
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Phone MeHi,
I think selling first in a flat market is the most prudent option. Sell with a longish settlement if possible and you might be able to find the right place in that window and avoid a double move.
Marty McDonald | Mortgage Experts
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Phone MeHi,
Stamp duty is payable on value not sale price. If it were just sale price every man and his dog would be selling for less than market value with a cash deal on the side. This is deemed to be tax avoidance and is illegal. Not sure how each state picks up these favourable sales in their data but if yoir friend get caught not only will they have to pay back the stamp duty but may face more serious charges such as fraud etc.
I am sure people do this a bit but if your friend and his brother intend to really take the piss with the sale price at well below market price it may get picked up by the relevant state revenue office. Especially since there would be some tell tale signs such as no an real estate agent involved, same solicitor and same last names?
Not worth it..
Marty McDonald | Mortgage Experts
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Phone MeI believe granny flats are looked upon kindly by acpla. Contact them to see if allowed on your block first then next step is to get an idea of cost involved in building and if finance is likely available to you.
You want a granny flat with seperate kitchen, bathroom, living room and bedroom(s) to give you maximum finance options. If all seperate then can include potential rental income when going for your loan (if needed). If the build is less than say $150k and you don’t need rental income to service the loan in the lenders opinion and you have the equity in your home you might get away with not doing a construction loan which may simplify things as well.
Marty McDonald | Mortgage Experts
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Phone Me90% no probs with 2 regional bank options, 95% second tier lenders only at this stage although this may change any moment now they way things are loosening up.
Marty McDonald | Mortgage Experts
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Phone MeHey,
Q for you Michael. How do you deal with hsbc? I thought they had exited the broker market.
Marty McDonald | Mortgage Experts
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Phone MeHi,
Many lenders require all adult beneficiaries to guarantee the loan anyway so this might fly. Aletrenatively you might put both of you on as directors to start with then remove your wife as director after the loan settles. No doubt the lender would require a personal gaurantee from her anyway so they are covered.
Marty McDonald | Mortgage Experts
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Phone MeHi,
I don't understand why you feel ripped off if a lender is paying ongoing commissions to a broker. If you are paying the same rate as if you went direct to the lender yourself isn't it irrelevant? It is just the lender spreading the cost of acquiring you as a client over the life of the loan.
There are brokers who rebate ongoing commissions but really if that is their value proposition then stear clear IMO.
Good luck,
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeIt may be deemed a managed investment scheme which puts the same compliance burden on you as an unlisted mortgage fund ie you need an ASIC approved prospectus and a financial services license, licensee as responsible manager as well as regular independant audits etc. I suggest it may not be as easy as you think to set up.
Marty McDonald | Mortgage Experts
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Phone MeA 0.2% lower rate on an average investors total loan balance is much more than $400. Smoke and mirrors. Competition is heating up though which is great.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone Me
