Jason4 units and above is the magic number as with anything over 4 you will not be able to get LMI.Max LVR on 8 is probably 75% of purchase price (80% maybe possible at a stretch but interest rate will be higher) and 75-80% of renovation costs subject to a maximum of 65% of GR.I have developed and strata titled over 50 blocks in Brissie over the…[Read more]

You wont get 100% finance for a development.Normal max would be 80% of land value and 80% of development costs subject to a max of 65% of GR.Sure you can go higher with an element of Mez but the interest rates are starting to climb and the profitability fall,

On the downside financing them could be an issue unless you have a few pre-sales.Most development lenders will go to a maximum of 80% land value + 80% of cost subject to this figure not exceeding 65% of end valuation. For a virgin developer you will need a fair bit of equity in other property or be prepared to put in cash.

Just bear in mind from a financiers perspective the increased rent by way of a lease to a mining corp or similar is not the figure that is considered for serviceability but more often the likely rent in a normal market as suggested by the Banks valuer.In many cases i have seen the lender shave the rental figure they use  (especially if the loan r…[Read more]

LoiuseThere are many lodoc Commercial loans available at comeptitive interest rates and would certainly be preferable to take some debt against the security you are buying rather than using up all of your equity from your residential properties.Most lodoc loans will go to a maximum of between 70-80% LVR (I appreciate that 95% lodoc is available)…[Read more]

EznFor a virgin developer they would probably insist on a proportion of pre-sales maybe 3 out of 10 with deposits taken and also look for good serviceability in your existing income.In addtion they would want to be seeing at least a 20% return and that you have cash reserves to carry the debt in the event of contingency.

ElkaThere are many lenders who offer this type of product.

No disrepect to the last post but by switching your loan to interest only or refinancing to a cheaper variable interest rate will have little benefit increasing your serviceability with a subsequent lender and unlikely to worth doing given the externals costs of refianncing.Many lenders take into consideration 100% of the rental income where the…[Read more]

Yes you can sell the asset to a separate Trust with you as the Trustees.

Most lenders will use their panel valuer and not budge from this.In saying this it is not too difficult to merely work backwards and look at which lender accepts HTW for their valuations in that area and approach them. Your Mortgage Broker should be able to assist in this respect.We had just this from a client of ours only last week. They had a…[Read more]

The ATO practice of negative gearing.

You would want to use a Put / Call Option however i dont think you would find that a deceased estate vendor would allow this.If there is that much profit to be made why not bite the bullet and settle rather than risk the fact of loosing the deal altogether.A P & C is normally used when you wish to flip the deal and is standard in the development…[Read more]

Havent seen the article but i assume you are referring to the Shared Equity Scheme offered by Adelaide Bank / Rismark.If this is the case then to correct a couple of points:1) It is not available to investors at this stage.2) It is available on a maximum 25 year term after which the debt needs to be repaid.3) Interest only loans whether are for 20…[Read more]

We simply bit the bullet in 2002 and employed 2 full time staff to prepare ours but in saying that you need to have a enough to make it worth while.To date we have never had any real problems and other than a once a month meeting with them let them deal with the day to day running of the business.

Funny isnt i. All these purchasers who bought through Genesis and now want to sell up quickly.Of the 60 + loan applications we processed throughout NY State i would say over 80% of them where the buyer bought through Genesis or associated marketing company did not value upto the original purchase price.Chad has worked tirelessly over the years…[Read more]

They are done on a case by case basis and therefore dont have anything to send you.Simply operate like a standard secured personal loan although offered by a private investor hence the higher interest rate being charged. In saying this it is only charged on a small percentage of the overall purchase price unlike a standard wrap where you will be…[Read more]

Why would you not merely go for 95% / 5 % split with 95% from a traditional lender at a competitive rate and t5% through lodoc personal loans or vendor terms ?

What is the 3 year fixed rate  Advantage finance, Virgin, and RateBusters are currently offering ?

LarryIf you are quick the FHOG maybe $10,000 in VIC.Are you sure you need to have it wrapped and can't get traditional style finance.

Hi Paul Yes you certainly can but you maybe better off to consider selling the property into a Trust structure which would give you a little more flexibility as time goes by.We find that many of our clients are wanting the same thing as they often realise they should have stuctured the loan differently to maximise the interest deductions. One…[Read more]