Forum Replies Created
Sorry i hate to say Kjun that is simply not correct.
can get a traditional lender to finance because equity will be over 80% and with rental history, they see me as a secure candidate – good on em!
Under NCCP your rental history and your loan to value have little bearing on your ability to service the loan and will not get you over the line. I am unsure as to the amount you receive on Austudy but assume it is around $10,400 per annum which is less than the minimum Living Allowance used by all lenders taken from the Henderson Poverty Index.
Unless you have other income you have not mentioned you will NOT qualify.
Now in regards to the other options i would comemnts as follows:
1) Splitting your deposit will not help you as you will need to borrow more and even with a percentage of rent being taken into consideration you would not qualify for 2 loans.
2) Buying a Duplex will mean you will not qualify for the FHOG or the Qld Stamp Duty concession.
3) Again without hard data it is hard to comment but your liabilities will stay the same (rent still needs to be paid) and yet only a percentage of income will be considered for servicing.As Swampy mentioned in his initial answer to your post "if you cant get finance then you cannot purchase" Remember both traditional, non traditional, private, vendor finance etc all falls under the new NCPP guidelines.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
AJ hate to say i dont think you will have any success with NAB wanting to go to 1% discount.
They will wheel out the line that they have the lowest standard variable rate and cant do much better than that.
In regards to CBA as Jamie has pointed out 1% is par for the course however they will want to X collaterlise all 3 loans which in the current climate is certainly not a recommended strategy.
Under the CBA package you will have an Annual fee but you could probably get close to 6.5% without any fee from a standalone lender without the need to X the loans.
Why not just get the CBA to finance the 20% deposit and acqusition costs as an Equity Loan and then finance the 80% purchase price elsewhere. There is more to correctly structuring an investment portfolio than getting the cheapest interest rate for a few months.
Just make sure the NAB johhny doesnt suggest an application and a credit search otherwise you will have further issues.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jm
Sorry i think you have totally missed the point on Foreign Currency lending.
Firstly you will never find any smaller US Banking lender lend in Australia so would even waste time on that one.
They dont even have enough funds to make loans in their own Country so outside US in out of the question for a variety of other reasons including licensing.Secondly assume the AUS drops from parity to say 90 cents in the USD your loan repayment has just gone up by 10 percent.
A further drop to 80 cents means another 10 percent increase.The risk is horrendous and the cost of hedging makes in totally incompetitive.
The Treasury Departments of all the major Banks spend all of their time doing it 24 hours a day and still claim their cost of funding is increasing so you have no chance is coming out on top.
Sorry to appear negative but you really are playing a very dangerous game.
I watched in the UK at the end of the 80's so many clients taking out FC loans fixed for 25 years with Bear Stearns at 4.25% when UK rates were a lot higher. Unfortunately BS are no long with us and most clients ended up loosing their home and all belongings some years later.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie i was hearing from 2013 you will need to qualify for a knighthood to still hold your license.
In fact Sir Taylor has a nice ring to it.
It is really a joke and you are so right.
In between writing 101 loans you need to have time to keep upto date with the industry, carry out a mountain of complaince and then just when that is almost over need to re-qualify each and every week.
Managing my own portfolio certainly isnt this difiicult.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi wade
Without being funny it is like saying if i roll this dice what number will it land on.
Life, Trauma and PD have so many variants that you need a specialist Financlal Planner to run the numbers for you.
If you were a bridge builder on the Sydney Harbour Bridge then the premiums with Aviva will be different to that of Colonial or if you said at the weekends i love to drive formula 4 a lot of insurance companies would pass on the quotation.
No 2 premiums are the same and it depends on the Underwriters Risk appetite.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Obviously construction costs will vary from State to State and City to City but when you realise the average project Builder is working on around $750 / Sq M for a box then even if you allowed say $1200 / Sq M for a Townhouse you wont be a million miles away.
Even if they were 3 bedoom and were 100 Sq M then you are probablt taking about $120K each plus externals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Jamie get in and do it by Nov 22 to get the Prior Learning exemption on those extra subjects.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Definately and Wesuck are not one of them.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Which Bank ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
No not all lenders will allow this irrespective of the lvr.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Wayne
Give the boy a chance.
Us Brokers are flat chat at the moment dealing with a flood of Compliance paperwork, daily battle with lenders and even the odd new deal or two.
Michael is usually well on the ball and maybe he has just let that email slip.
Shoot him another note and i am sure he will email over his Client Analysis Form.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No not a spam at all (in the main of course cant comment about the Brokers promoting it).
St George Bank used to offer such a product in the good olde days but withdrew it a couple of years ago.
If you are earning in that particular currency and understand the currency risk if you need to transfer funds back to Oz then the product could suit you.
You wont find too many a standard Australian Banking lender offer it especially if you are resident here and earning good old AUS $.
Domain of Lloyds TSB, Barclays Japan etc etc
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
All depend on 101 things – Initial lvr (if mortgage insured gets a lot harder) / sales evidence etc etc etc
We have done it for clients fairly regularly and often works best where the initial lender does an in house valuation and then the borrower is happy to pay for a full valuation from a panel valuer.
Course sometimes borrowers gets disappointed that the valuer doesnt agree with them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Dan i agree to a certain extent but then would you want to be taught to fly by a pilot who had only read the manual.
I get so many clients say a Broker sat down with them told them how they could pay their home loan off in 6 years with a super duper wealth reduction plan for only $3500 fee and buy 4 over priced investment properties through their marketing dept at the same time.
When they ask the Broker how many properties he owns he answers ' Well i am still saving up for my deposit on my PPOR because i need to pay off my credit card and car loan first' it hardly fills you with inspiration that he lives by his / her own advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it was another reason and his name is ……………….. (Name and address withheld due to potential legal action).
And people thought the main man was a Director when in fact he wasnt.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Wayne, as the boys have mentioned sounds to me like you could have got yourself in a wee pickle.
Without being funny i would not hesitate but get onto Michael tomorrow morning and get him to sort this out.
January 12 is not that far away and i assure you that the Seller will not be happy to wait whilst you go and sort finance elsewhere.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Greg
I guess what i was getting at is that as a broker who receives a commission and charges the client absolutely nothing then often we are required to redo a file for a product switch (Variable to fixed rate application) or split loan where the client wants to reduce his PPOR loan and take out an investment equity loan with no new borrowing.
This takes the same time as a new application and the same amount of complaint paperwork.
Honestly with the amount of business i turnover my clients would have a fit if i told them there was a 2 hour fee charge for doing this and is merely part and part of business. I cannot see how a broker who charges a fee for his time would do this for nothing but hate to say this is just reality.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Michael would you like to answer my question posted at 4.49pm.
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Yours in Finance
Richard Taylor | Australia's leading private lender
In additional to Michael's valid points I would do a search of the Body Corporate records and have a look at the last AGM Minutes to see whether there was any provision for an increase to come into effect or whether any scheduled work is set down.
Also look at the Sinking Fund Anlaysis and see how much is in the kitty and what is to be spent.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Greg / Michael
Perhaps you can confirm how you handle a client with say a $20K loan increase or a client who doesnt want any additional borrowing but just wants to do a product switch (involving a new application with many lenders) or a simple split for a variety of purposes.
Do you charge them an hourly fee ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
