Forum Replies Created
Hi Vinay
Just be careful that this so called Major lender doesnt do another credit search.
I see it every day of the week loans declined by one lender and then client goes to another lender who promises the earth and then declines the deal on credit scoring.
Talk to your Mortgage Broker and find out your options before rushing in with a lender as they are not interested in protecting your credit history and will do a CRAA before you know it.
The deals we are doing in AH / Springfield are holding up well on valuation but i certainly now the lenders to avoid.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Eddy trust me we finance enough deals in Emerald and know the valuers well enough to know that whatever the agent tells you the valuer will discount the value by the cost of the furniture.
Using a lender that goes off the Contract price only is your only option.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wow Mayle i wouldnt fancy being in your shoes as Terry mentioned loss of deposit is just 1 issue you might have to face.
Without knowing the full facts it is difficult to comment but i can think of a few lenders who would insist on 2 consecutive payslips irrespective of the lvr. In saying that i can think of a dozen more you would have no problem.
I cant see the lender issuing the approval and then the loan documents prior to the 23rd April and there with Anzac Day being a Public holiday i cannot see any hope of you being able to settle on the 1st May.
I had a forum client earlier in the year who forgot (despite a number of requests from me and her Solictor) to transfer the balance of her settlement funds to the Solictors Trust Account prior to Settlement. She then did it on the 25th January and with the 26th being Australia day and her being abroad at the time the funds did not arrive in time for the settlement on the 27th. Vendor terminated that afternoon and kept the $33,000 deposit.
Moral of this post is ACT NOW so not wait until your Broker can sort it out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terry is so right.
Be suprised how many times we get deals put to us where the clients have gone down the route of setting up expensive structures (usually recommended by their Accountants) only to find finance is not achievable within that entity or if it is lenders treat it as a commcerial deal or want to charge higher interest rate or impose higher fees on the deal and then you need to think twice about the project viability.
A lot will be determined by your overall strategy as to whether you intend to hold the properties for the long term or are looking to renovate and move on / subdivide etc.
Also believe it or not the name of the Company can be important in getting finance.
If you call the Company XYZ Development Pty Ltd or similar then lenders will often refer this to a specialised department who look only at development deals even if you are only buying a single dwelling. Choice a name that does not give the lender the idea that this is a get rich quick scheme.Other consideration is the borrowing capacity. Whilst i agree with Terry a single Director maybe the way to go the other 2 partners are likely to be called upon as co-borrowers to increase serviceability. This then brings with it issues on relation to Joint & Several liability especially if there are wives, partners involved.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Tracey oh i agree
I have a block of 18 here in Brisbane that i purchased some years ago (All in 1 line on single Strata)
We do all of our development finance thru Anz and when they knew i was buying to keep these they said we will have to do those at Commercial rates and terms. Thats easy i said NAB National Credit want out development business and they have said they will do them residentially.
Amazing how quickly Anz changed their tune.
Not that we owe that much on them these days (15% lvr post reno) but i can put up with 6.43% variable on a $375 Breakfee Annual fee.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Another bonus of the Sunshine State.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Vinay
Firstly welcome to the forum and i hope you enjoy your time with us.
AH is great suburb and has a good rental demand. (Slightly biased because i like playing around at Brookwater GC.)
Buying new will provide you with healthy depreciation and capital allowance claims.
Although in saying this dont buy merely for the Tax breaks. Talk to a couple of local property managers and get their feedback before you sign a Contract. They will give you a run down on the type of property which attracts the higher rent and is in constrant demand.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Eddy
Whether you will receive a higher rent or not i shall leave to a local PM to respond to but a couple of other comments.
1) Whether it is added to the purchase price or you pay for it separately it will be Tax deductible.
2) The valuer will reduce the valuation by at least $18,000 so you need to ensure you have access to cash to pay for it come Settlement as lenders only lend against purchase price or valuation whichever is the lower.
Away from this arguement $18,000 is a fair amount to spend so you would want it to be quality fittings and fully furnished.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi FTI
Welcome to the forum and hope you enjoy your time with us.
Certainly your age is not an issue as long as we can show sufficient serviceability.
I have had a 20 Year term approved this morning for a 60 year old but they had sufficient superannuation to take them past 65 and did not have to rely on selling their PPOR in order to cover the loan repayments.
One issue might be 3 units on a single title however i have a couple of lenders who wont have an issue with this so subject to everything else you would be ok. Might be possible to subdivide the land prior to constructing but this will depend on the local council.
Where possible i would try and retain the existing house as otherwise you will be borrowing against land value only and that might be harder than it looks.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Luke
I am trying to finance a property for a forum client in the same building and whilst this client has good income / assets etc the valuation is ugly in the terms of the lease conditions.
I would suggest you run a mile from this property even if you are paying cash.
On a separate note i would always suggest some form of gearing and in most cases some financing is available.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Lukey
There are a few considerations and obviously selling one or both properties maybe one of them.
I would however suggest you may wish to sell in your time when the market is favourable so a bridging loan facility might be the best way to go. There are a couple of options here but i see from you original post it appears that your existing loans are cross collateralised and this could be an issue depending on your current lender.Nothing to stop you financing the land, constructing the new house and financing the interest whilst you are still residing in the current home subject to serviceabillity. More hard data would be needed here to advise further.
Then there are potential capital gains issues and the timing of any potential sale contract.
This will largely depend on the original purchase date and potential other gains / losses.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Nigel has a long track record of making money for investors both here and the US in both residential / commercial property so you wouldnt go far wrong in talking to him to start wiith.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Milliet
I am assuming you are looking to buy, renovate and then potential sell or access the equity.
I have many clients who have limited equity who i have referred to Nigel and who have subsequently invested in one of his developments and made a lot more money than they woould have done by buying an IP with high entry costs.
Once you have your funds returned and you have covered any Tax liability look to pay down your PPOR and recycle the loan to deductible debt and then look to commence your IP journey.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As a volume producer we may get more beneficial terms than other brokers but as an example did a 95% lvr for a forum member with Anz this week at a purchase price of $685K in Pty Ltd structure.
We are directly accredited with the Bank so couldnt quote their standard terms thru an Aggregator.
Wesuck i understand dont like doing them but NAB are fine and so are Homeside and the Dragon.
Then we think outside the Big 5 and i can think of 6 lenders off the top of my head who have no problems.
As i say i have been in the industry for 25 years and usually in the top 100 Brokers by volume in the Country so might get more favourable terms than most but i doubt it in the current climate. All we normally get is quicker service / processing times although sometimes it makes you wonder.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Duplicated post
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi anand
Sorry i have never heard so much rubbish in all my 25 years of being a Broker.
Neither of the main mortgage insurers have any problems in providing in cover where the applicant is a Pty Ltd Company ATF a Trust structure so i am unsure where you get our information from.
Also upto 95% lvr is available thru the normal residential distrubution channels without the need to go thru the back door of some business banker.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Anannd
If you are an investor who goes for LMI all the time, a purchase under company/ trust structure may not be possible.
Why would this be?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Not aware of too many investors who spend more than £2M on a property.
The increased Stamp Duty was for properties more than £1M but the big increase kicked in $1M later.
Other crackdown was for Jersey & Channel Island companies.
Really no big deal considering our last development the properties went for $43,000 Max with 85% lvr available.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You will not find an Australian lender take a UK property as security so you can forget that route.
Selected UK lenders will look at Buy To Let (Our version of Investment properties) loans.
Stamp Duty is exempt for properties upto 125,000 pounds and then it is a graduated scale.
Ran a very succesfull property scouting trip for 4 months there last year for investors and will be back again trying to pick up some more bargains later in 2012.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Py your calculations on serviceability and the mortgage insurers are two different matters.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
