Forum Replies Created
Michael
Aussie / mortgage choice etc have no greater ability to finding you the right loan than any other individual broker.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I would ask the lender who as indicated they will do the deal as to how they charge the interest and when they will release payment.
As each lender is different and we have no idea who it is best to get it from the horses mouth.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I might be slightly biased but with the bigger franchises you are as good as the person behind the desk.
As these franchises dont worry too much about the level of experience for their employees you often find that last week they were a plumber and now they are advising on your investment portfolio. As i have said on many an ocassion it makes me laugh when you see a Bank manager or Broker advising a client on an investment loan when they havent even paid off their own PPOR.
Being a 1 man band with a wee bit experience (25 years + in the industry) i find that i can tailor make a product to suit my clients needs without having to sell them whatever our franchise or Head Office tells us to promote.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it is possible.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Alistair my sentiments exactly.
Ray seems to think that his local lender will approve the loan without any prior experience and that pre-sales are not a problem (might have to get him to market some of our projects) given that he is in the construction industry so all good there !!
Must admit 8.5% seems like a jolly good rate for a first timer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Coutts
Yes hate to say she is correct.
Most lenders use some form of auto scoring and in many cases there is no course of manual over ridding if the deal is declined.
Multiple searches will affect your score along with a myriad of other factors so dont put in application willy nilly otherwise when it comes to the real deal you may find that you are declined with no way back.
We do a lot of pre-approvals for forum clients but mainly with lenders where they actually mean something (Some lenders pre-approve every deal which is worthless ) and usually when they are close to putting in an offer or going to contract.
All we would do is source from the client the sorts of features they are looking for or if they were looking to use to advise give them some lender choices and reasons and then even start to collate the required documentation without lodging an application i.e payslips, identification etc. Then when they are ready to put forward an application double check nothing has changed in regards to lender policy or terms and lodge the application for them.
Remember many Brokers and Bankers recommend what they think is good for them and not you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks guys very nice of you.
Based in Chapel Hill which is a good 6 iron from Kenmore.
Happy to help Jacob.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Ray sorry i dont think you are understanding the process at all.
The progress payments will be set by you the Builder.
Assume you are at Slab stage you will notify the lender they will undertake a valuation and maybe a QS check and release the appropriate funds. It wont matter if this is month 1 or 3 as interest you will just be charged accordingly.
You as the Builder will understand the construction time and can plot the stage times according to the progress you are making.
They are no set dates for the progress draws as this will be determined by the project progress.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ray
Without any details on the project it is difficult to calculate the interest component or indeed the rate charged.
To be honest 10% maybe too cheap if it is a fairly high lvr and Mezz finance is involved (You could almost double that).
Interest will only be capitalised if you have pre-sales or can demonstrate that you can support the end debt, have prior experience and the rolled up interest is within the maximum LVR.
Very simply interest is charged on a daily basis and credited to the ongoing principal balance.
As long as it is not your first project and you have good asset backing the deal can be done.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi again Cassco
As mentioned a revolving line of credit facility can be drawn down and repaid and then redrawn again to suit your circumstances.
Interest is only charged on the funds outstanding so if the balance is nil there are no interest charges.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Wayne sorry mate who are Red Finance ?
I would be concerned if you went to a property seminar and they were recommended.
Keep your Mortgage Broker, property adviser separate and then there is no chance of conflict.
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Yours in FInance
Richard Taylor | Australia's leading private lender
Hi Janine
Definately contact Jamie and get is set up correctly.
The ACT is only a good 3 wood away from Victoria (although not the way i am playing at the moment) but you can do everything over email / phone conversations.
We own all of our properties in a series of DFT's but that is not for everyone and each clients circumstances are different.
It is not a 1 glove fits all solution.
Cheer
Yours in Finance
Richard Taylor | Australia's leading private lender
As Jamie says they could be based in Timbuctoo (Assuming they were licensed) and as long as you feel confortable with their recommendation and level of experience there is no reason why you shouldn't use them.
I settled a loan on Friday for a forum client based in Abu Dhabi and probably never going to meet.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes as long as the rate and term on the LOC is competitive then dont have a problem going that route.
You would use the LOC to access the deposit and acqusition costs and then get your Broker to arrange a standalone loan secured against each IP often with a separate lender to your PPOR.
Wouldn't be paying down your IP loans if you still have a non deductible debt on your PPOR.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Duplicated post
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Michael
Firstly welcome to the forum and i hope you enjoy your time with us.
You start your post by saying you have taken out a loan of 90% lvr so i think the time for getting the structure correct might have been and gone. Firstly it will depend on whether your current lender offers such a product.
Ignoring this what you have to understand is that an interest earned from the offset account is offset against charged on the mortgage account so when you say that the rent being received is equivalent to the interest being charged i dont think you full understand the concept.
In essence what you would do is add to your Gross income the Gross rent you receive and then from this figure you would deduct all of the expenses both "cash" expenses such as interest, rates, insurance etc as well as "non cash" expenses such as Capital Allowance and Depreciation.
You then come to a reduced net income figure and you pay tax on the adjusted amount.
Yes whilst an offset account can be an important feature of loan there are other considerations and without hard data it is difficult to assess what your requirements are.
In regards to what happens after the expiry of the interest only period you can either roll the loan over to another interest only period (subject to your lenders criteria) or revert the loan back to a P & I loan. Some interest only loans are everygreen for 25 years whilst others are for a fixed period. As i say each lender is different and it will depend on who you loan is through.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ian
I am one of those Poms although have been living in Brisbane for the last 15 years or so.
Manage to spend 2-3 months a year back in the UK and then the rest of the year in Qld and wouldnt have it any other way.
I am from further South than Bristol but know the area fairly well and love the West Country.
I was over there last year on a buying trip for some of my Qld clients and must say i thought the UK was ridiculously cheap and rental returns were so much better. No land Tax, Council rates (if you are a landlord) and exempt from Stamp Duty at the lower end.
Interest rates a fraction of what the current rate in Australia is and cost of living half of what we pay in Qld.
Bristol is a fairly reasonable sized City so expect to pay a little more than slightly further out. Bath and Yeovil are not that far away and are considerably cheaper.
All in all you have to understand that the population is 3 times what we have here in Australia and wages are less so everything is comparible. I bought a new BMW Z4 which we garage over there last October for 16500 pounds new and the same thing here would have been $50000 +. Insurance / registration is less than i pay in Qld but fuel is more expensive.
Let us know if you want so useful property websites and i can email them over to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sundance
What they have told is you as absolute rubbish.
Might be the Banks preferred way of doing it but certainly not the sole way and in your best interest.
I hate to say knowing the speed CBA operate at i think it will be too late but i certainly would be uncrossing the securities before you buy again.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Well if the hybrid is a PPOR you would better off linking the offset account to the PPOR portion rather than a new IP.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Drop me an email and I will email you my API article which sets out how we got started on portfolio.
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Yours in Finance
Richard Taylor | Australia's leading private lender
