Forum Replies Created
Hi Marjac
Again hate to disagree.
This week alone we have done a top up for a forum member with his existing Big 4 Bank which was in joint names where the property is in 1 name only. The Bank originally declined the deal when the client went direct but then approached us and we ended up putting in a strong submission to credit which they approved.
Second deal of the week was with CBA in a similar position. Again approved.
Certainly i take it on board that using a Guarantee ot Co-borrower is harder than it used to be but having been in the game for
25 + years it is often just about presentation and a decent Credit submission showing legal justification.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jodie
Yes from the sounds of it the loans are x collateralised so like anything not a problem until you have a problem and then regretfully it is too late.
To be honest might take a while but i would strongly suggest you look to untangle the security mess before going further.
You want to access the equity from your PPOR but dont want to have the other properties securing the position.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Adding to Derek's comments above they maybe better off not buying in personal names at all and looking at Buying In Trust.
The decision will be based around the property and the returns / losses it generarates both now and in the future and also their own personal financial position. Many a client buys in a negatively geared property in Trust because they believe that within 2 years the property will produce positive income.
Horses for courses and without further information it is difficult to comment further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Giant You mention you are looking for Basic rate loan and mention you are with CBA.
IMO you could do better.
Other than that dont have a great deal else to offer as the options seem to have been well covered by Luke and others.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Daewoo
Firstly welcome to the forum and I hope you enjoy your time with is.
I would question your motive for wanting to buy a property being to reduce your Tax liability as there are many other ways to do this subject to your own circumstances.
In saying this if you do decide to proceed with an investment purchase make sure you look at all of the options available to defer your tax liability by considering interest pre-payments etc etc.
API Magasine is a great publication (Please dont read the old 2010 editions or you will see me in it lol) and i would actively encourage any investor to consider subscribing to such. Reading, chatting with fellow minded investors are all good ways to educate yourself.
Look through old posts on the forum here and exchange your views with others and your knowledge level will grow tenfold.
Good luck and keep us all posted on how you are travelling from time to time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No Angel he isnt offering finance at all but is seeking investment (3rd para).
Big difference as far as ASIC are concerned.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Dont want to put a dampner on your enthusiasm but you might find you either need to be Licensed to accept a fee for introducing a deal to a investor (This will vary from State to State) or be required to compy with the Managed Investment Act.
Not that easy these days.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ryan
There are a few lenders that meet your criteria as long as you meet there's.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
NSW not going to comment on MH per say but i do have a view.
If you wanted someone local to assist you I would have suggested Jamie M who has answered your post and has more than a few testimonals. More importantly he knows his onions.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
NSW at 6.97% the NAB product comes with a $395 / Annum package fee.
Dont mind the product at all and use it regularly for clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Nothing to stop her becoming a co borrower and as long as their is some financial benefit that will be ok.
Good luck on a Cashbond to increase serviceability.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Redrooster but Bank West will not allow Non Genuine savings on a 95% lend.
Also gifted deposit from a Builder is totally non acceptable under NCCP.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Alex great first post of endorcement.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
When you purchase a multi unit dwelling some lenders will want to charge you Commercial rates of interest and set up costs because they do not deem the loan as a residential loan.
For many lenders a maximum of 2 units on the same Title is the max they will accept wheareas for other they will go upto 8.
There is a big difference if you can save 0.25-0.5% difference in interest on the total loan amount.
Also remember if you do construct on the front of the block this will increase the number of units on the Title so need to factor that in. If you have equity elsewhere you maybe ok otherwise you may have an issue going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
With the Adelaide Bank fixed rate loan with 100% offset there is no maximum you can place in the offset account and with the AMP loan all you would do is split the loan so that the variable portion was > $10,000 so that you could deposit as much as you like in the savings account.
Dont get confused over the maximum loan reduction you can make with some lenders fixed rate products which is $10K Per annum as this is totally different to the offset account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
3 x 2 on a single Title believe it or not may not be treated as a residential deal with a lot of lenders (Many cap the loan at 2 units on a single Title).
Variance in funding costs and set up fees will have an effect on the bottow line so make sure your Broker is experienced in dealing with multi unit dwellings.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Amy
Firstly welcome to the forum and I hope you enjoy your time with us.
Hate to say unless your Accountant holds a Credit License or is an Authorised Representative of a License Holder under NCCP he wont be able to offer you any Credit advice.
You are right there are a myriad of loans and offers out there however you need to focus on actually what you need and not what the lender wants to sell or offer you.
Cleanest and my preferable way of financing the deal would be as follows:
1) Separate sub loan secured against IP 1 to cover a deposit , acqusition costs and reno funds for IP.
The level and amount of the loan will depend on a couple of points however might be able to go 85% with NO LMI.2) A separate standalone loan secured against IP 2 with different lender keeping the loans frees standing and no cross collateralised. As IP 2 increases in value revalue draw down additional funds repay the sub loan and shift the debt to IP 2.
I would question why you need 2 offset accounts. With odd exception most lenders charge something for an offset account whether it be a monthly or annual package fee. Only think of a couple of lenders off the top of my head which offer a true fee free 100% offset account and there is a limit to how much you can offset each month especially if you are ever thinking of purchasing a PPOR in the future.
A good independant broker should be able to sovle the problem for you with some lending options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Without going through points 1-7 i will comment on a couple.
Point 3) The loan should be changed to interest only. Ideally it would have a 100% offset account attached to it although this i understand is not possible (unless you have other non deductible debt) so maybe have the rent paid into a high interest bearing account.
Do not have it paid directly into the home loan as when you draw the rent out it is only deductible if the purpose if for investment.
You take out $100 and go out for dinner and you have just contaminated the whole loan.An offset account not only protects the status of the loan but also reduces the interest payable.
You cannot redraw $30K and claim a deduction on it now.
It sounds like you work for a Credit Union if payments are credited in quarterly rests. Hate to say the effective rate of interest will be higher than quoted. Maybe worth switching depending on the lvr.
Point 6) Mortgage insurance does not protect you at all and is an insurance you pay for that protects the lender.
I am assuming you are getting confused with the cover.7) In your negative calculations you have made no allowance for Building Write off and Depreciation claims.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Absolute pleasure NSW2011.
There are a couple of other alternative lenders you might look at also but i am assuming you are happy with a variable rate with 100% offset over a fixed rate.
Other options which come to mind are AMP (no monthly fees at all on their 100% fully transactional offset account with flexibility to fix a percentage of the loan at no cost with the set up) ING with their Orange product or even if you want to go fixed rate and 100% offset account Adelaide Bank.
Really horses for course but if you are happy with Bank West then product isnt bad.
Personally i would probably look at splitting the loan maybe with a portion of the loan fixed interest only and then the balance variable interest only and link the offset to the variable portion.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Dont mind the product at all and if you can get the deal over the line at Credit level then think it is good alternative.
Just make sure you give your MB plenty of time when it comes to approval and settlement and dont waste time on a pre-approval as with Bank West they are not worth the paper they are written.
For an offset account $3.99 / month is good value for money.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
