Yes it is possible if you have equity in a property and can draw on this if not you are going to be hard pushed to do many deals as at some stage in the game you have to part with a deposit (or Call Option Fee) need a Solicitor to draw up a Contract / Option Agreement, put the power on a house so you can renovate it, pay some insurance etc etc.

Great in theory and when you leave the Sales Course you are convinced you are on the road to riches but realistically it doesnt work like that in the current climate.

Cheers

Yours in Finance

Must admit we cant put our developments up quick enough.

In saying that however we dont intend to sell them merely build, lease and collect the rents.

One reason BA's are falling is simply the lack of development finance.

Cheers

Yours in Finance

Without being funny absolutely no point in doing a valuation thru say HTW or CBRE and then finding they are not and accredited valuer with the Bank / lender you intend to use.
 
Big difference between a Bank valuation and CMA as SNM as suggested however you would be concerned if the figurs were miles apart.

Cheers

Yours in Finance

Hi Vic

Never had a Bank undercut me in 22 years usually the other way around.

A good MB can structure your loan correctly to make sure it is set up right for you wheareas a Bank manager / loans officer has no interest in doing this and in most cases no idea either.

An example was a client today who was told by his CBA branch manager that he had a 100% offset account and that he should deposit all of his income into this account and then redraw it when necessary. Unfortunately it turns out that after making $96,000 deposit into the account over the last few years he has decided to withdrawn only for us to advise that he has now contaminated the interest deductibility and he cannot claim this as a deduction.

Of course had he had a proper 100% offset account set up he would have been laughing.

To save 0.1% initially and now find it will cost forever and a day is an expensive error.

If you have been offered that on a 95% lvr i would complain as Yes you could find a cheaper rate but at what overall and long term cost. Just bear in mind the MISA account CBA trot out as there offset account is not fully transactional.

If the loan is interest only i wouldnt go with SGB either and consider NAB at 6.54% or Anz.

Both have a fully transactional offset account. Anz will also require you have existing relationship with them.

Cheers

Yours in Finance

Nothing wrong with Bankwest and Yes no problems in saying it on the forum.

Typical Bank though they want a bit of everything when it comes to security and wouldnt now how to structure a loan to suit a customer.

Cheers

Yours in Finance

Hi Matt

Realistically unless the deal is very stong most lenders wont lend anything against the business value itself.

If you buy a recognised franchise then it might be slightly different you might get 60% lvr but a small leasehold business you wont get anything like that.

Depends on the business itself as to whether potential income will be taken into consideration.

Sorry it sounds vague but that is business lending for you in the current climate.

Cheers

Yours in Finance

Bayer

Hate to say at 6.2% it will not be a true offset account but more like a redraw offset account within the loan.

Such structure can be a total mess if the loans were for investment.

Personally i would have them all separate and standalone and certainly not have your PPOR acting as security.

Clients seem to think interest rate is the most important factor however this is not the case for successful investment.

Sounds like you need some impartial advice as clearly your Bank is not giving you that if they are suggesting you use your PPOR as security. Might protect them but wont do anything for you.

Cheers

Yours in Finance

Hi Bayer

No not messy at all although if the existing lender settles you might be up for some costs or exit fees etc.
Ideally want to get the new lender on board asap so that things are happening quickly.

I have a deal in at the moment where Settlement is on the 14th Nov and i am very confident we can make that date so 22nd shouldnt be a problem.

All depends on the balance of information.

Cheers

Yours in Finance

Normally you wouldnt nominate son or daughter but merely children of the Trustees

Cheers

Yours in Finance

Hate to say i disagree.

You can certainly put a condition /s in the purchase contract that the Seller serve the appropriate period of  notice on the tenant to allow you access to the property for whatever reason.

As long as the required period of notice has been given there is nothing the Tenant can say or do.

Also you could include a condition that the Seller serve the appropriate notice to end the periodic tenancy under the term of Contract (In Qld it would be 60 days notice).

The condition could read that the Seller agree to offer the existing tenants a new Tenancy at a given rent and if they dont sign the amended lease within a given period of time the seller agrees to serve the appropriate notice to end the lease agreement.

Done 101 times for all sorts of reasons.

Cheers

Yours in Finance