Forum Replies Created
Sorry DHCP
That is simply not correct.
Neither lender you mention will lend against valuation irrespective of the purchase price.
It doesnt make any difference whether it is a bull or bear market.If you have a look at the Credit policies of both Banks and in fact all lenders it clearly states "purchase price or valuation whichever is the lower".
There is nothing to stop you refinancing after settlement and if you feel you can get the valuation increased borrowing upto that amount (subject to mortgage approval).
The only time lenders will lend against valuation is where the property has been purchased off the plan and the contract is dated more than 12 months prior to Settlement.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i am not aware of any lender that wiill lend 90% of the valuation.
90% of the purchase price / valuation whichever is the lower i would agree/
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Amanda
Depending on the rest of the application you might get 90% lvr on a standard residential rate with the right lender.
Anything more than 4 on a single Title normally constitutes Commercial lending so higher rate of interest and reduced LVR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi booge
Firstly under NCPP you are required by law to advise the lender of any material change to your financial circumstances over the next 2 years so maybe you should be thinking about this.
Ignoring this you should be thinking about paying interest only loan on the IP to maximise your Tax deductions.
In regards to whether you can support a further loan regrefully there is insufficient hard data to carry out an accurate assessment.
Personally if you are looking at purchasing additional IP in the future I would setting up the structure correctly now as when you go back to revisit it you may find that you cannot finance the deal.
This does not mean that you dont declare to your lender that you are going to down to 1 income however it does mean you look at lending options with increased servcieability criteria.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
On a secondary note have you considered how you would finance such a development.
Whilst there are a few lenders lending in the development sphere they are few and far between and you probably going to need decent equity elsewhere, some good cash reserves, pre-sales and past experience.
We do a far bit of Development financing on our deals and for clients here in Brisbane and each deal is a bit of a challenge.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mery
Sure not a problems at all.
Glad we were able to assist on this one and I am sure the next one wont be too far behind.Happy New Year to you both.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes hard to believe isnt it.
You can buy an IP here in Oz and throw in NZ security as collateral.
Has to be in the larger Cities but sure can be done with a few.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mike
Not quiet correct there are a couple of Australian lenders who take NZ property as security.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Bob, have a look at one of Terry's other posts he responded to a similar question and answered it excellently.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Might want to do a search on the topic as it has been mentioned on dozens of ocassions over the years.
We have financed enough deals up there over the last 12 months to start your own mini Bank.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Ok assume you have no PPOR.
Are both loans standalone and Interest only.
Do you have 1 100% offset account linked to at least one account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bob
The question of whether to use a Deposit Bond over Cash all depends on the length of settlement, the return you are getting on your invested funds etc etc etc.
The reason Deposit Bonds are used are most people dont have cash to front the deposit as they are borrowing 100% +
Insurance companies are in the business for pricing risk so charge accordingly.
The premium can still be cheaper than borrowing the funds directly.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terry has laid it out perfectly.
Trust me it does not work and no lender will allow it.
The only way you can buy multiple properties is pay down debt, reduce liabilities, increase income.
Obviously lower interest rates can help but it all boils down to structure.
Structure it correctly and you should be able to keep on buying, structure it poorly and you will be in problems before you start.
My properties are held in 5 DFT's with a Corporate Trustee. Not for everyone but suits my investing.
Next year i will have paid down the last of the loans secured against the properties so they will be unencumbered.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Guys ever thought it could be Spam.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Very close Ian.
Just need a couple of days when i dont get in 3 or 4 deals to finish it off.
Even took an enquiry Xmas day so that shows you how busy it is at the mo.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I would not purchase 5-10 properties in my own personal name for a number of reasons.
Setting up a Discretionary Family Trust is a fairly inexpensive and painless exercise and if the properties are +cash flow then gives you a multitude of options when it comes to income distribution.
Course you might want to bolt on a Company Trustee which costs a few extra dollars but small fry in regards to the endless savings.
I use a series of 5 separate DFT's for our porfolio but that is not say that is right. Just my level of comfort.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi there
Sorry to hear about the epilepsy.
Not at all you certainly your disability pension income would be considered by a few lenders however issue would be how much you could borrow.
The usual responsible lending criteria would be applied under NCCP if it was a home loan you were looking at so would largely depend on your available deposit and the likely purchase price.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi 3rd Deg
Any utilities connected in your name or Voters Roll evidence should be sufficient.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi there
It is slightly an ambigous question.
If you mean "Can i withdraw my Super and use as deposit on a block of land which will be in my own name and then take a loan out in my own name for the balance" the answer is NO not unless you are applying to withdraw under the hardship provisions.
If however you mean "I have set up my own SMSF can i use the funds in the account to purchase a block of land and this is an acceptable acqusition under my investment strategy" then the answer is YES.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Bank of Melbourne Max lvr for Com is 70%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
