Forum Replies Created
Henry regrefully just because Cannex or Infochoice show a lvr doesnt mean the lender will actually agree to do the deal at this lvr as many investors are finding out.
In fact i would say from all the number of enquiries we receive the biggest issue is the investors existing lender will not go to a high enough lvr either thru lack of equity or serviceability.
Info on such websites is always out of date and doesnt refer to actual credit policy which is being written merely published.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Whilst this is the case with many lenders it doesnt mean the lender will actually do it.
Already had Anz knock Dysart back to 90% max lvr.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Firstly welcome to the forum and i hope you enjoy your time with us.
If you dont intend to purchase a PPOR any time soon then i guess a P & I loan is ok however you have to consider that if you ever use the redraw you have contaminated the interest.
Redraw = new loan and therefore boils down to the purchase of the funds.
If this is not for investment the interest is not deductible.
When you use an offset account the funds are separate and the loan interest protected.
If you dont trust yourself you would always set up a separate savings account and use this for your day to day expenses and then save money in the offset account to reduce the interest charged.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Totally agree with Terry.
Most Bank employees have little or No knowledge of investment structures, loan planing etc.
You find them giving out advice to clients yet they havent even paid off their home loan let alone purchased their 6th investment property.
Ask youself will your Bank Manager hang around because you are his client or will he take the first promotion going and forget you even exist. If you think the former you having yourself on.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sure would that be Pete Chan or Pete Naylor !!!
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Richard Taylor | Australia's leading private lender
Hi David
Ok sounds like a fairly simple project.
If my business partner who is a builder and does all of our Brissie developments wasnt so flat out we might even consider tendering on it ourselves.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Nope hate to say doesnt matter structure you use a finacier will only lend to the entity that owns the Title and no one else unless of course the other party has separate assets they are prepared to put up as security.
If you buy the land your JV partner cannot take out a construction loan on the property to fund in his / her / their name.
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Richard Taylor | Australia's leading private lender
Really Gapital Gains Tax free when you sell sounds like a cracker of an investment to me.
Always double check with your Accountant as posts made and not reliable sources of Tax Advice.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie has pasted a useful tool in the Gemworth location guide but in realty this is merely a guide.
We have done many a deal in the last few months in those areas at 90% lvr without much of an issue.
Like anything depends on the strength of the overall application.
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Yours in Finance
Richard Taylor | Australia's leading private lender
You would be lucky to get 55% lvr on a block of 18 units in the middle of CBD capital city these days so out in regional NSW 80% is no chance.
I own a block of 18 units here in Brisbane (4 x 2 + 14 x 1) and this day and age would probably only get 65% lvr.
Thankfully i owe around $450K on them so not an issue.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Might want to start by asking your Architect as most have a few Builders up there sleeve they can recommend.
Most will probably want to see the BA before they provide you with a Fixed price quote (Your financier will insist on this in the current climate) but then you should be good to go.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dragonfly
Being a mortgage insured loan i think it is unlikely you will get 95% so realistically assume a max loan of 90%.
Whether you can subdivide the land before you build will also influence the lvr as a lot of lenders dont like multiple units on the same title but all in all as long as the rest of the application is strong i think the deal is doable.
Course assumes the zoning of the land is residential or similar.
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Richard Taylor | Australia's leading private lender
Are you only looking to buy in NSW Theresa or is this is where you are based ?
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Richard Taylor | Australia's leading private lender
Hi Sonya
As Jamie has mentioned Yes it is still possible but there are too many variables to give you a Yes or No answer immediately.
I wish i had Jamie's faith that things are getting easier as to me the mortgage insurers are just as hard as they have ever been.
Course if you own a property or two with a bit of equity it is always easier to finance at 95% + LMI than if it is your first IP and you currently rent and have limited assets.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Oh Terry under NCPP being a Broker is like standing in a downpour without an umbrella.
If the reems of paper work doesnt get you the ongoing compliance will.
Thankfully finding and Broking European properties doesnt require so much time / paper.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi James
No that is not the case.
I recently purchased an investment property in France which is one of the most stable countries in Europe and has the highest number of tourists for any Country in the world. Did this with 100% finance.
I will be launching my new website shortly so will be able to reveal all.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with Terry nothing to stop you personally lending funds to the Bare Trust which undertakes the construction.
Underaking a development is a bit out there and if considered as running a business or trading will be an issue but otherwise all good.
Unfortunately you wont find any lender finance a Bare Trust in construction or indeed lend against vacant land.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Chris
Many employees work on Contract these days so as long as you are actually PAYG rather than self employed with many lenders it wont be an issue. If you have been in the same industry for the last couple of years also that will be easier.
On the other hand you will need 5% genuine savings accrued over a minimum of 3 months so that may still take a while to accrue.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Eamon
That is a very good question.
Must admit we did it the old fashioned way and that was from our savings or personal income.
Alternatives these days are to look at using the raised funds to invest in areas / country's or vehicles where the net cash flow is constant or positive.
We have just started a service due to the demand from clients where we source both UK and eurpean properties for them taking advantedge of the strong Australian dollar and low intererst rates in the Euro zone. We settled a deal last week for a client which was bringing in 12% net so he intended to use this to fund the shortfall on his Australian properties.
It can be done but admit there can also be some short term pain.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No not suprised as i think you might have wrongly explained the situation.
No lender will lend against potential even the Commonwealth.
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Yours in Finance
Richard Taylor | Australia's leading private lender
