Forum Replies Created
Hi Darren
Firstly welcome to the forum and i hope you enjoy your time with us.
You say the loan needs to be Lodoc as all of your income goes thru the Company however there iis no reason why the loan cant be done full doc as log as we can follow the money thru the Company and wiith you being the sole Director / Shareholder.
Of course if for some reason this isnt going to happen Lodoc in your own name will be slightly easier and may require slighly less additional documents. In the main the days of merely stating an income to make the deal fit has been and gone post NCPP.
Ease of finance verses the name/entity you want to buy the property in maybe different and needs additional consideration.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sam
Firstly welcome to the forum and i hope you enjoy your time with us.
On the basis your former employment was also in IT i can think of a couple of lenders who might do the deal everything else being equal. Ideally though you would want to keep at 90% less LMI but other than that should be good to go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jac
Reason being is if you rent out your current PPOR and you have paid down the principal you cant claim the interest on the redrawn amount.
I have had many clients who are so excited that they have paid down their own home loan and then decide to keep the existing property, rent it out and buy another PPOR only to find the new loan is non Tax deductible. Had they kept their PPOR loan as an Interest only loan with 100% offset account of course they could delatch the offset account and the interest on the entire debt (even though iit was the old PPOR would still be deductible).
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jack
Since the inception of the new Credit Act lenders have started to get a little more conservative with a clear reliance placed on serviceability both now and in the future.
In addition any loan recommendation has to be on the basis that the product is not unsuitable for your requirements.You would be suprised how many deals i see where the Bank / Banker has recommended a particular product or strategy to a client which clearly fails to meet these requirements but at the moment they get away with it.
A properly structured loan is something which will last you both now and going forward and your Mortgage Broker should be able to make a few suggestions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with Michael 90% is doable everything else being equal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Spy
Yes the appetite for the UK is growing by the day thanks to the strong Aus $.
I am currently here in the UK sourcing deals in both the UK and France for my investor clients.
We mainly specialise in repossessions or BMV for our clients who want the UK and leaseback properties for France.
Big difference is we can finance our Aussie clients into both Countries upto 80% lvr which is considerbly more than you do so in the USA.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have to agree with Alistair Nigel is on the ball when it comes to the US and offers excellent educational information.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Nathan
Hate to be negative on your first post but you have NO chance in getting any US Bank finance such a deal.
I am currently in the UK sourcing property deals here in England and in France for my investor clients and you would have more chance in financing a deal here than in the US.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Good luck on finding a US Bank to finance a deal for you in the current climate.
I am currently in the UK sourcing some UK and European properties for my Qld investors.
We settled a deal In France for an Australian last week at an 80% lvr at 4.25% variable repayable in Euro's.
The property is leased for the next 9 years and comes with immediate 20% equitty from day 1 .Breakeven in year 1 and then + cash flow from there on in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Twafy also doesnt work for a PPOR if you ever decide to rent the property out….. and you woould be suprised how many clients decide to take that path.
The few dollars a month your lender may charge for the offset account will made up several dozen times over the course of the loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi mark
Just to correct your post Lodoc lending is still very much alive and well post NCPP.
If it is done properly there is no real difference now to the position prior to Jan 1 2011.
As i am away on holiday in the UK i will let others throw a few comments aroound in regards to the best place to invest.
Certainly from a personal perspective i am looking forward to getting back to Brissie and increasing our IP portfolio.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with boys comments above.
As Alistair has mentioned there is no point in getting excited over a interest rate a GR loan when you find you are charged a 1% Application fee, Commercial valuation at $2500, renogotiating fees ongoing fees etc etc.
You may have well gone for a 80% cost Resi loan at 7% with limited costs.
Be suprised how many of the Com Depts of the Big 4 try and push you towards business lending segment as it certainly benefits the Banks bottom line.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Considering you will need for them to offer you a minimum of 10% plus costs (to get around the mortgage insurers requirement that you have a minimum of 5% saved over 3 months) and wont be able to offer them anything but a 2nd mortgage after the lender has registered there mortgage i dont think you will find too many willing investors.
Remember they will need to gift you the funds prior to exchange and have no security until settlemet.
Anyway only my opinion.
Good luck.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If it is your typical student style City apartment (We have similar in Brisbane) then i think you will be lucky to get 65% lvr let alone 90%.
NAB wont touch them even if you are a gold customer at that lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jay
Depending on the sorts of questions you want to ask why not float a couple of questions on the forum here.
$3000 buys you a lot of books to read and educate yourself rather than using a FP.
Usually good test is to ask your Financial Planner how many properties he/she owns.
Normally a FP wont make any money in recommending you buy an IP and will want to push managed funds and direct shares.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
NRAS at 90% has been doable since inception of the scheme.
Serviced apartments and student accomadation are a different kettle of fish but if the rest of the deal is of the right quality miracles can be worked.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
What lvr are you looking for Ben.
As Michael has indicated 85% fairly straight forward enough with the right lender and higher maybe possible.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If the total construction price is $100K and you have financed a loan of $75K you will put your $25K in first and the lender will kick in once you have spent this amount.
Bear in mind it will need to represent 25% of the current value and not a pre-payment of goods which are to be fitted at a later.
Good lying around or pre-paid trades have no value to a Bank.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure not offered by every lender and expect a maximum lvr of circa 75%.
You put in our cash first and lender will come in at the end.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
HI there
Yes you are right that as long as you both feel comfortable in affording the repayments you should be fine. Course also factor in the added expense of Insurance, Rates etc.
Whether a Bank or lender will agree with you is a different matter as they all have slightly different affordability models.
As long as the useable equity is sufficient and dependant on whether the interest on the car loan is deductible and the rate of interest being charged you might even look at taking out a separate sub loan (course like to be non deductiblle) at home loan rates paying out the car loan to further reduce your montly expenditure.
Take the sub loan cover the same remaining term as the car loan (or take it over 25 years but set the repayments at the same rate as you are currently paying to increase serviceability) and this willl save you more interest each month.
The rest of your assumptions are correct.
Just make sure that your husbands new employment position doesnt involve any form of probation as that will limit the number of lending options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
