[Mick CParticipant@shapeJoin Date: 2010Post Count: 1,099]

March 27, 2012 - 2:14 pm

ok and your question is….

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March 26, 2012 - 2:15 pm

Firstly welcome to the forum! hope you enjoy your stay.

With any property these days you will need a min deposit of 5% ( for high quality/safe property + strong application) , now given your unit is in a Category 2 area + it’s under 45 squ meters you will be looking at a min deposit of 10-20% ( 90-80% LVR) depending on the lender….

Is there any way around this?
1. Not really, unless you buy a “higher quality”/ safer property ie larger then 45 squ meters + not a studio or service apartment etc…
2. Unless you can get your parents as guarantor with their property ( presuming their home has usable equity)
3. Find the required deposit

---

Note:
– If this is an investment, it will be wise to keep it as I/O
– with a purchase price of $76,000, will need to find a lender that allow small loans size of under $100,000
– If you paid rent to an real estate agent and never missed your payment; then some lenders like the Dragon can consider this as “genuine savings” , but the key is that you will NEED some savings…ie not possible at 100% finance.

Regards
Michael

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March 14, 2012 - 11:15 pm

If it’s under ur friends name then he/she has to pay the tax and can make the expenses etc…
Im not 100% sure what your trying to achieve? buy in frds name; but you get income and get the tax benefits???? ( not possible)

Regards
Michael

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March 14, 2012 - 1:44 pm

why dont this person just transfer the money to your bank account?

Regards
Michael

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March 14, 2012 - 8:18 am

For development of more then 4; your best to stick with commercial anyway;

– More flexible
– Easier to deal with + faster + can be tailored to your needs
– Will take in pre-sales
– Interest can be cap ( depending on lender)
– Better valuation

Remember rate is one of the last thing successful medium- large developers look at as it will only last for 12-1 month depending on your build time…the another factors of how easy it is to obtain finance at the desire LVR, conditions, terms and time is more important hands down!

After you have built the place; you can refinance to a standard home loan rate for muti unit developments – http://www.shapehomeloans.com.au/finance-for-multiple-units

Regards
Michael

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March 14, 2012 - 8:13 am

If your looking for property located in Sydney, then you can’t go wrong with Nathan Birch.
Some of my clients keeps raving about him! + i been to 2 of his talk and i can see why.,..

Regards
Michael

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March 14, 2012 - 8:01 am

Vote Done!
Just sent out a staff memo to vote for ya as well!

Good luck – don’t think you need it as your pics are beautiful!

Regards
Michael

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March 13, 2012 - 2:47 pm

A bit hard to say, as this will be your PPOR the thinking behind the investing is slightly diff….Depends on;

1. What you interpret as “value wise”, i have buyers who had bought a Townhouse in Merrylands for $380,000 which is roughly $25,000 less then the average for a simliar property ~ 10% less…and they may they consider that as value?

2. How much work do you want to put towards the property + how experienced are you?. are you wanting to do small-medium renovations and cosmetic changes- or buy a place that’s already done up.

3. How long will it be your PPOR? setting the right structure is paramount to max your growth potential and tax benefits.

4. DO you need the property to be close to a station?

On a personal note; i have a thing for Toongabbie- since 2008 me and some of my another stuff have mark this suburb as one of the area to go through a massive capital growth stage in the next 5 years, – if the right land size, street , zoning and property type is chosen – I know my property mentor has personally bought 2 houses in Toongabbie in the last 4 years, if only i didn’t have my money tied up on my development project….- however it only works for particular investors and may not suit everyone.

2012 -2013 is the year for toongabie to bloom so it may be a bit late already as there was a slight peak in prices leading up to 2009-2010???- if you walk around toongabbie now you will notice a lot of new units, council upgrades and the new shopping center!

http://forecast2.id.com.au/Default.aspx?id=265&pg=5530

Cheers.
Michael

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March 13, 2012 - 1:53 pm

Hahah Richard good one!

Love ya Terry

Ghorvath – If the title is under ur name then yes you claim 100% of the loan; The ATO doesn’t ask whos paying for the mortgage as such- in fact your wife would most likely be listed as an guarantor of the loan with some of the major lenders like NAB if she not on the deed.

Regards
Michael

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March 12, 2012 - 9:41 am

ok wow…something must have went terribly wrong- 10k borrowing capacity to 400k!?

Apply for the pre-approval when you are ready to buy + have all the paper work in place. Ie no point applying if you need to submit the group ceri which you clearly dont have with you now?

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March 10, 2012 - 9:51 am

Mate great email!

Common problem; Max 70% LVR on their dual properties – including duplex and granny flat ….which i find quite stupidly low, but they aren’t the only way that have that sort of policy..

Matter of matching up your needs with the bank at that “time”- unfortunately bank loyalty hardly works.

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March 9, 2012 - 6:28 am

If you borrowered 20% deposit from your PPOR- then no you don’t need to pay for LMI…

From the sounds of thing your loans are crossed; crossing your loan benefits the bank as it’s hardier for you to move from that one lender + LMI is more expensive

With 6,000 in LMI and a possible loan amount of $800,000 it means you were over by a few % only..like 83%

LMi pricing works based ON:
1. security – Location
2. LVR amount
3. Loan amount ( in your case it’s both loan together rather then one single loan amount – hence the higher cost)
4. Use of funds

If you did a simple equity release and went with a different bank then you may have avoided the LMI and saved on the $6,000! + spread your risk among 2 different bank ( possibly at a better rate…but def better deal with no lmi)

Lesson learnt- Shopping around + doing your homework or working with a broker and not just sticking with your current bank because it’s “easy” can save you quite a bit.

Regards
Michael

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March 4, 2012 - 1:04 pm

Your wage is not high enough to consider a land + build loan….land and build loan require a lot more deposit + slightly better serviceability for the lender to be “comfortable”.

Also are you planning on doing ” owners builders”ie you contract the build job out your self? if so that requires a 20% deposit …
If anything on your current wage + given your a apprentice only, you could only look at existing properties and buying it as an investment so it has the extra rental income + consider using your parent’s place as a guarantor as your deposit may not be enough- how much you can afford – don’t know need more data.

Take it one step at a time….Construction loan is a totally diff ball game…

Regards
Michael

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March 4, 2012 - 2:45 am

Are you doing this as a private sale? or via a agent?

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March 4, 2012 - 2:44 am

Terryw wrote:

How can the potential buyer accept your offer to sell the house when they don't know the terms.

Also, in NSW at least, a property cannot be marketed by an agent unless a contract of sale has already been prepared.

Yep; i alwasy ask for the sale contract before making any offer.

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March 2, 2012 - 8:15 am

Like create a conspiracy

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March 1, 2012 - 11:11 pm

Not that im aware of.

But they need to be licensed builders themselves ( not a carpenter) – so check they are licensed with no complaints held against them …for NSW
http://www.fairtrading.nsw.gov.au/About_us/Online_services/Home_building_licence_check.html

+ preferred if they are part of HIA ( housing industry Association).

Most are either retired builders or builders who no longer want/can’t to do the “physical” work…

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March 1, 2012 - 1:20 pm

Depends on location…..+ security type.
But 7% is pretty good for Com.

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March 1, 2012 - 1:18 pm

Sounds like your with ANZ….

Simple answer- They are the one lending you the money; so you just have to play by their “rules”

Solution- if you still can’t meet serviceability you will have jump ship ( make sure you go to a lender that WILL accept your $300 per week lol)
OR close off your credit cards and see if you pass the serviceability.

Regards
Michael

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March 1, 2012 - 1:09 pm

I would consider hiring a development project manager to overlook the prices, builders, plans in fact the whole project.
Most ppl choose not to hire a project manager for smaller-medium development because they think it cost too much….but i think it’s money well spent especially if you have not done this sort of work before- Cost: around $4000 for a standard 1 house build…and for a project of your size it will be around $12,000-15,000 depending on complexity and location.

1. they overlook the whole project for you from council approval to finish
2. Make sure the price that’s been quoted is within standard and will try find another tradie to do the job faster, better and cheaper – end of the day they are paid a set fee already not a % of your build price
3.Time, make sure everything is running on time and as planned.
4. Less headace…

My parents are semi- professional land developers and have finished 3 development project…currently in the process of starting their 4th and they still use a development project manager to over look the project.

Regards
Michael

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