Hi James

Firstly welcome to the forum and I hope you enjoy your time with us.

I wont comment on the other points but merely the question of finance.

As it is your first development you would probably be looking at borrowing a maximum of 80% of land costs and 80% of construction costs meaning you would need to fund the other 20% plus soft costs not included.

When you get a little more experience under your belt you would probably obtain a gross realisation loan to maybe 65/70% of end value but of course the rate of interest will be higher and not your standard banking lender.

Have to agree with Wealth lending markets have certainly tightened up especially in the self employed / lodoc / credit imparied arenas and even the full doc market with certain lenders.

LVR's have reduced and discounts disappeared.

Where we used to be able to get 0.8 – 1% discount for clients off the standard variable rate with a large enough loan these sorts of rates have completely disappeared.

Most of the majors have withdrawn their 0.7% discount off their lodoc product range and in fact Pro Packs could be a thing of the past in the next 6-12 months.

Well it has been over 5 weeks now since my initial request for a Premium Finance information pack and I have now accepted that it will not arrive.

This organisation is clearly aimed at targeting a specific audience who it believes it can bully into signing a contract for an overpriced IP (And yes i have evidence to this effect). It flaunts the spirit of the law at every opportunity and charges membership fees for nil return.

Then if you ever cancel a contract as is your right under Qld law they phone you and hastle you.

Clear message is avoid such a Spruiker at all time. They will be bad for your Wealth.

Sorry but i am still confused.

The land will cost $180K and the construction $150K being a total of $330K.
You have $70,000 deposit so presumably will be looking for a loan of around $260,000.

On your income you would be able to borrow $260,000 with the right lender.

I dont see the problem. You presumably only need the $260K not much more although correct me if i am wrong.

Hi WC Yes here 24/7.

I think you will all find that Ben C went the way of many a good wine after a night out and thats down the drain.

Great post Trisha. Thats 6 posts now promoting Jamie McKIntyre.

Maybe soon you can provide some contribution without advertising a product or service.

If you honestly believe you can learn in 12 months how to effectively trade options you must be kidding yourself. I spent the first  8 years of my working life on the trading floor of the London Stock Exchange as a Currency Options trader so like think i now what i am talking about.

Hi Vic

Have a look on your original letter of offer from RAMS / RHS and it will outline the DEF or break costs.

GOM not being funny but why do Anz offer home loans.

If they were that good everyone wouldnt everyone use One Direct.

Maybe it is that they dont do more than 60% on lodoc, dont accept application from Trusts or Company applications, have DEF nearly double that of the Anz, no offset account,

I rest my case.

Nikki

When the loan is so inflexible that it doesnt do what you want and doesnt provide the features that most investors require.

If the cheapest loan was the be all and end all then realistically no other loans would be written.

The discount lenders write less than 4% of the total loans written and this tells you something.