Forum Replies Created
BMW hate to say that is not quite correct.
Quiet a few lenders will go to 4 units on a single Title to 90% lvr.
Yes Anz certainly have some good points and in fact i really like the Breakfree package but for an investor the behind the scenes credit policy is probably more important than the upfront rate etc.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Unknown admirer Jamie lol
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Yours in Finance
Richard Taylor | Australia's leading private lender
As Jac has very kindly said said most applications these days are lodged electronically so distance is not a problem.
I have a couple of forum clients I am dealing with from Abu Dhabi and 1 in Finland at the moment. All 3 are buying in Melbourne.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi boney
I hate to say 6 days is a long time in finance let alone 6 months.
If the loan requires LMI then be prepared for a lot of questions and documentation.
If you have equity in both your PPOR and existing IP then you certainly shouldnt be cross collateralising the two loans or going back to the same lender and getting them to provide you with 100% of purchase price + costs.
The structure needs to be sorted out prior to going to contract as the equity loan can often be the longest part of the process.
Any man and his dog can finance an IP loan standalone depending on what features you require in the loan. Make sure your Broker is au fait with investment structures, maybe one who has a IP, two or three.
Take nothing for granted trust me as what seems ok on paper to start with can often take a lot longer to sort out than you expect.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jamie
No you are not wrong it cant be done on a residential deal.
Funding is based on a cost basis only.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Even now Wesuck will probably find it hard to grasp the DFT concept.
You have to understand that lending to Trust structures forms a very small part of a lenders overall loan book so like if it is too hard the easy answer is No we dont do it or Yes we do it but the rate is XYZ above our standard rate or the applic fee is now ABC.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jess
Welcome to the forum and I hope you enjoy your time with us.
As i am about to jump on a plane and head inter state i will keep the response fairly short.
In essence you wouldnt qualify for a loan on a scholarship and whilst you might not be paying anything to your parents for living at home lenders will factor in both a board payment and a living allowance which isnt far off what you are currently receiving.
If the loan is less than 80% and not mortgage insured you have more chance on getting it over the line but i regret that would mean waiting a year or so in order to save up a greater deposit.Not sure what position your parents are in but they may want to consider borrowing the funds and lending them to you are the same rate. They would not be governed by NCCP.
As long as you meet the residency requirements of the FHOG you would receive this as well as the Stamp Duty concession irrespective of who finances the deal. You could always look to refinance and pay your parents out in a year or so.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i agree finance is fairly limited but certainly doable.
In the main as has been said minimum loan $50K (varies from State to State) and maximum lvr 75% lvr.
We have got of lenders now on board at around 4.65% fixed but obviosuly these rates vary each day.
We have fininancing clients into the US for some 10 years although the introduction of NCCP in Australia stopped us offering it to Australian residents / citizens until we obtained legal clarification from our Aggregator. Never ceased offering it to our UK clients.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Lamp
Yes hundreds of Forum clients in Vic and will in fact be down there tomorrow for a FIFO visit.
We personally dont charge any fees for our services as we are remunerated from the lenders who we place the business with.
Yes taking an standalone 80% lvr and the balance of the 20% + acqusition costs from your PPOR is standard practise.
What you need to do though is get the refinance and restructure in place upfront as this can often take the longest even though it seems simple and is the least amount.I cannot see with the equity you currently have that the strategy is risky at all.
A good located property is a sound strategy and especially when you have little to no deductible debt.
By the way you are never too old to get started in building wealth for your future.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sundance
Firstly welcome to the forum and i hope you enjoy your time with us.
Sounds a bit like a Wesuck (Westpac) deal to me so if i am right then not suprised they told you you could borrow 100% of the purchase price without offering your PPOR as security.
Hate to say they are totally incorrect and it cant be done unless you put in cash deposit or cash as collateral securiity.
The days of lenders offering 100% finance have been and gone.What Jamie is referring to is limiting the amount of security you offer and not having the loan over both properties.
The structure you would use and the type of loan / lender you would choice will dependant on your long term goals and objectives.
Further data would be required to assess situation correctly but without one thing for sure is do not cross the loans.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Funny got a couple of forum clients in Tom Thumb small world.
Yes we often find clients say that their broker or banker has never purchased an investment before but is out there giving them advice on structure and suitable investment lenders.
Most Brokers dont even understand the differing credit criteria applied by lenders.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Mick, i will let others answer a lot of your other questions but in relation to finance Yes it is now possible and we have more and more lenders coming on stream.
Been hard work but we now have formal agreements in place with a number of institutions and are starting to close deals with regularity.
Minimum loans, locations, type of properties are all barriers but can be overcome.
Loans can be variable or fixed and in most case there are no pre-payment penalties so most clients are taking the 30 year fixed rates. Rates can vary from 4.5% fixed in AZ to 6.75 in CA.
Maximum lvr 75%.
Certainly been an interesting journey (We closed over 100 loans between 2004-2008 before a 3 year absence when the GFC wiped out the FN market) and we are now starting to work with some very interesting lenders.
Good luck in your investing journey.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Chris
As Jamie mentioned subject to your serviceability and overall credit score (Not all lenders credit score) it shouldn't be a problem.
We have many a forum client who has purchased 2 or 3 properties at the same time or in a very short space of time and generally there is little problem.
As i often mention on the forum structure and the choice of lender can often be just as important as the property itself as some lenders have very pro investor serviceabiliity and others do not.
A good Broker will be able to interpret your goals and plan a structure accordingly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Lamp
Firstly welcome to the forum and i hope you enjoy your time with us.
I must admit i would never recommend any client get into property investment merely to reduce their Tax liability as Govt policies change and buying with a view to making a loss in never a sound investment.
Buying in an area with sound cash flow and capital growth prospects is certainly a better strategy.
With a virtually unencumbered property structuring the loan correctly is imperative so that you dont cross collateralise the securiities and give any potential lender excessive security.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Lachlan
I hate to say the secrets of a lenders credit policy changes in some cases daily so you find anything written in a book relevant or
upto date.Believe it or not constructing 2 properties on the 1 Title will not be acceptable a fair few lenders.
Also bear in mind that you wont receive the FHOG or the Qld Stamp Duty Concession so investment stamp duty needs to be added to your numbers. On a $300K land / house purchase Stamp Duty and registration will amount to nearly $9K.
I would suggest you start small, buy something which you can occupy as your own for the qualifying period and receive the FHOG and Stamp Duty concession and then look to move on from there. Building equity as you go will put you in good stead for the future.
A good mortgage broker can run the numbers for you and look at all lending options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matt
No hate to say very few lenders will give you the juicy bits being a customer but as a Broker the infomation is readily available.
As Jamie says a couple of lenders will take 100% of the rent where the LVR is < 80% whilst i can think of another that does not take rent into consideration.
Strange but true but thats lending these days.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Nigel i hear a whirlwind is coming.
Should blow away the US market as far as many Australians are concerned.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Last thing i heard was that Suncorp were not taking on any new business.
Have you tried using an Insurance Broker?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Mike
An instalment contract is simply what it says a Contract where the agreed purchase price is payable in a series of instalments.
Normally where a Vendor was unable to sell the property in the open market he/she may agree to sell the property by receiving from the potential buyer a given number of monthly payments. Interest would be charged on the initial purchase price and the balance would be reduced by the principal reductions amde over the term of the contract.
Title remains with the Vendor until such time as the final instalment (whether this be a number of contractual repayments or a lump sum payment) is made and the Title transfer to the purchaser.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say as i said happens every day of the week with some lenders.
Many of the bigger lenders take their valuers assessment over the Lease agreement.
Course there are many that dont.
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Yours in Finance
Richard Taylor | Australia's leading private lender
