Forum Replies Created
Hi Anne
Yes doesnt have to be an LOC especially if you lender charges a higher rate of interest for the flexibility.
A simple base rate equity loan will do.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I dont want to appear negative but if you are approaching your Accountant to finance the deal shouldn't you also be approaching him to ask him what structure and entity you should use.
Surely you are paying him for his advice and not relying on the commission he received from arranging the finance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Amy sure drop us an email and I will see what i can do for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As far i am aware no it is not available thru the direct channel.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Michael Yes one of each.
Have to say the Broking is keeping me flat out at the moment with the demand for finance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Standard rate but your Broker will need to get the LMI Waiver for you as it is not automatic.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I agree with Anthony that a Mortgage Broker will be able to give you an overall idea as to the likehood of you obtaining finance but have disagree with the concept of getting a pre-approval now on the basis that your circumstances will shortly change.
Unfortunately one of the underlying questions any lender or Broker has to ask under the new Credit Legislation is whether you believe anything in relation to your own financial circumstances will change over the next 2 years and do you think this will effect your ability to repay the loan.Clearly the answer in your case will be YES and the loan would not proceed.
The post goes well with my earlier post in the FInance section about full disclosure.
Just because you go to a Contracted position does not mean that you would not qualify for a loan.
Other factors are taken into consideration and as always there are too many variable to make an accurate assessment from the information to hand.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry to hear about your current position.
Realistically if you need any form of gearing this maybe difficult as serviceability as with the exception of rent your income will be fairly limited.
Whilst some lenders will take into consideration your insurance payment you dont want to overcommit yourself given everything else. Make sure if you do buy something you keep a decent cash buffer in hand to cover the unexpected costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
SNM is bang on but assuming you are the sole Trustee can set that up in the Deed and cover it in the Investment objectives that the Fund will predominately invest in residential real estate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Fish
Almost like how long is a piece of string because of the number of variable but realistically a maximum 80% lvr is achievable.
(Depending on the State you buy in and the costs of purchase around $950,000)You just need find the set up costs, stamp duty and acquisition and relevant deposit.
Course a few more points which are taken into consideration but that is a guide.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Anthony your reply is so true.
Sometimes you can ask all the questions and make all the checks and balances and if the client does not intend to tell you everything well there is little you can do (Of course gut instinct or feeling helps decipher whether you want to proceed with the deal).
In saying all of this i cannot stress that lenders terms, policies and conditions all vary and often where we know everything there is s still away round.
If a client had a past paid default and tells us we have lenders who will look at the deal.
If a client has a credit with a high limit but pays it off every month and can substantiate this then there are lenders who wont factor in the limit as an expense. (I actually have an application approved this morning from a forum member who has a C/C with a limit of $55K and pays it off religously every month. A couple lenders declined the deal on serviceability but he called me told me the entire reasons for the limit and we placed the application at great rates and the deal has been approved).
This goes for almost everything aspect of the application and you would be suprised what can get done when you know the facts and how to handle the deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi SNM
If you are a Director of the Company or Trustee of the Trust then regretfully YES same rules apply.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Both are good reasons to switch lenders.
As Michael has indicated 85% waiver of LMI is possible whilst some lenders have an alternative to LMI which can prove cheaper.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Maree
Sorry wasnt going to mention you in person.
Yes all good so far and a great property Maree has purchased.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Breeza
I was 9 years older than you before i retired and lived off my property income so to be able to do it by 30 would be a goal worth trying to achieve.
Just to correct an earlier comment you made.
You will qualify for the FHOG as long as the Title is in your name irrespective of whether your boyfriend is helping you pay down the loan. Regretfully it is unlikely with his credit record that he can be a party to the loan (This will depend on a few things including how many and how much the defaults are for) either however as long as you qualify on your own then he can certainly assist in the repayments.
Using your parents property as additional security may assist but without the full picture it is difficult to comment further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i would separate the loans in fact i would have 3 loan splits otherwise you are going to end up cross collateralising the loans and that certainly is a big No no.
You could have 2 offset accounts depending on the lender but the question is why would you bother unless you have a decent amount of money sitting in the account and needed to offset more than the first loan balance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Amy
As long as the rate of interest for a loan offering an offset and the fees associated with the account are competitive and subject to the monies sitting in the account making the savings worthwhile I would certainly have an offset account on 1 of the loans.
Do NOT use a LOC as a substitute product.
You then look to create a sub account with lender on IP1 and these funds represent sufficient to cover 20% deposit (Or what valuation allows) acqusition costs and renovation amount. Separate loan with separate lender then taken out on IP 2 for 80% (or more if valuation on IP 1 is less than expected) of the purchase price.
If you believe that the property will likely be cash flow neutral or cash flow positive within a fairly short period of time why not look at purchasing the property in a Discretionary Family Trust structure. This will give you both the added benefit of Asset Protection as well as the ability to distribute the positive income to the various beneficiaries i.e children, lowest marginal tax payer first etc.
Buying the property in your name / Tenants in Common is an option however your husband would need to be a co-borrower and guarantee the loan anyway. DFT has more flexibility in case circumstances change in the future.
Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Amy
Also got to bear in mind whether Michael, myself or any other Broker makes any form of structure recommendation it will depend on whether CUA will allow it.
Most lenders try and encourage you to cross collateralise your loans not for your benefit because it adds to the security position.
You need to remember that they are in the business for looking after themselves and the client is secondary.
With your given goals in mind for IP 2 i would question whether buying in your name /s is prudent especially when you have stated that subdividing, renovating to construction a secondary property is a real option. A DFT structure might be the ay to go but try and get CUA to understand why you want to go that route.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to disagree with Michael but with 90K you coukld certainly look at starting a SMSF and buying a property within the fund.
Ideally you would love to have $150K in Super to start but if you want to invest in property and the Trust Deed and Investment plan of the Trustee allow the Fund to go that route it certainly is doable.
Even at a 70% lvr if you only used $65K post costs of your SMSF then you are still buying around the $215K mark.
I have just done one for a forum member who purchased in regional Vic for the same money and they started the SMSF with similar amounts.
Be suprised not as expensive as you first think.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
In short – NO.
Unless you can prove hardship grounds you wont be able to access your Super until at least 55 years of age.
Many variations you can do but you cant withdraw the funds and pay off your own residential loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
