Also, Terry has mentioned a VERY VERY important point.

You need to work out what you want to do with the place, and what the goals set are etc… because once you fixed if you decide to sell OR refinance it will be very costly in terms of break fees. Three yers fixed is a long time, so make sure you know what your doing and NOT just looking at…[Read more]

To fix the rate will cost you $600 as an existing customer- paper work and re-application fee ( needs to get access by credit again- but you should pass easily )

The CR is the true value of the loan and rate, generally speaking a CR for fix loans only “looks” higher because it’s based on 25 years; and after your fix rate finishes homeside…[Read more]

Nice !!

Hopefully my BRW gets delivered soon.

P.s that was a really awesome video.

Regards
Michael

sha2011 wrote:
Thanks for clear picture of repayment detail.Actual issue here is when I ask IP loan, bank accepting that I can contribute monthly around 1200 (while I am paying my current rent (around 1100). But when I ask for my first home loan they are not accepting I can make 2300 contribution for each month!!! That’s right I will check w…[Read more]

Just note a deposit bond is not free

Regards
Michael

That’s right, construction loan is paid as progressed payment, you start paying the mortgage once you get your 1st set of payment, so over the 9 month period, you will start with a small part of the loan/mortgage and it will increase as the bank release more funds.

There are normally 6 stages…The % is the % of the total loan cost.

1.…[Read more]

Hi,

a) Not to sure what your trying to ask??? also all banks are different how they view a construction loan.
b) I would be a bit careful here, what you declare to the bank will go directly to OSR- so in the forms if YOU say it’s for investment or declare potential rent etc…you may forfeit the FHOG. There have been cases where buyers declare…[Read more]

As Jamie mentioned, you need to apply for a deposit bond, as a equity release takes 1-2 weeks ( to access the funds)…and no you don’t need to dip into the savings.

Regards
Michael

Which state ?

Regards
Michael

As Richard mentioned, more details plz.

Size
Loan amount?
LVR required?
Zoning
Postcode/location ( address if you really want)
Full doc or Low doc loan?
Whats the use of the land? farming? vacant?T constru?
What do you mean by short term accommodation ?? ( Campervan?)

Regards
Michael

Danrc wrote:
Terryw – I had no idea that would be the case. So just for my own understanding, even if I wanted to use the equity on my own my sister would still have to agree and be on the loan. That's a pain, she has no interest in investing.

Yep, because she owns the house as well….should u default on your loan, the bank needs to be able…[Read more]

Aim big…but start small, your planing with thousands of $$ so take it nice and slow

Do some renovations before development for sure…it will help you understand how the full deal works.

Regards
Michael

1. Yes you are a registered builder – but your also a owners builder..risk still there
2. If your sis buy and hires you, that’s fine – but if you decide to transfer into your name later on .stamp duty is payable once again + sis must be able to afford the loan + genuine deposit

Sounds like you REALLLLYYY want to build haha

Regards
Michael

No, sorry mate… The bank still looks at it as a risk and liability. Newly self employed company makes it even worst.

Owners build- under 75% LVR….could be as low as 65% if you have no exp
Registered builder- 95% LVR

Regards
Michael

Yep, def a big NO to owners builders…..you will have no chance at 95%…as a matter of fact, you won’t even get past 75-80% LVR combine for owners builders given your experience etc…

Regards
Michael

younan21 wrote:
Hey all My names Ray,ive recently just got my builders licence i am still young 22 years old..and i just want to know if i want to buy a house and then knockdown and build a duplex on it how much money will i need so the bank can give me money?so if i pay the 10% deposit for the land.. how much moeny will i need to get a…[Read more]

Well if that’s the case and your not planning on buyin in the next 12+ month, then yes having NO debt will improve serviceability….so pay down CC and save for deposit.

A lot of work to pay out a $22,000 debt ( 18% interest) + deposit in 12 month- but i admire your determination…it’s always feels great to be free of bad debt.

Regards
Michael

Firstly nothing wrong with an +clashflow property..i mean if it makes money why not? BUT cash flow isn’t the full juice of the deal; you need to look at the overall deal and capital gain ( where the real money lies) if the deal is so good why havnt it been sold yet? a few factors to look at it..

1. How easily is it to offload/sell – whats the…[Read more]

You have a slight serviceability and deposit problem; both which can be easily fixed….one possible solution is to re-consolidate your debt with your current mortgage but have it linked as 2 separate home loan/account for tax reasons.

Remember you have the advantage of investing young and having some equity in your IP; use it to your…[Read more]

Have you tried a different bank, all banks have different way they look at serviceability…some take in negative gearing some don’t etc…

Regards
Michael