Forum Replies Created
Bankwest is probably one of the poorest lender for such a development; due to inflexibility, no upfront val and also credit policy can be all over the place.
Also not sure what you mean by end value??? this is a RESIDENTIAL construction loan right?
Your only possible option based on what you have given and at such a high LVR, would be Homeside/NAB.
– allow upfront val
– allow for 3 construction under resi
Personally i always have good dealing with NAB for these sort of deals.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
^ yes
I reckon you just had a bad egg, give them a call again and see what they can do.
P.s Ex CBA banker.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Positive
– Ok rental yield
– Dual service apartment tends to attract a better yield
– Owner can live in the property x number of times a year ( not sure if this is considered a benefit lol)
Negative
– low ( in some case no) capital gain
– High maintenance cost; most will have a agreement to repaint and refurbish the apartment once every 3-5 years
– Income is reliant on the success of the "business" rather than the residential market
– Harder to offset/sell
– Most lenders will only finance service apartments on a 70-80% LVR.
Unless the yield is fantastic ( >9%) and the business/operator is excellent- i can't really see why any investor would consider a service apartment.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
^ good suggestion Jamie.
I would be more incline to try AMP and take advantage of their upfront valuation first- as you mentioned the valuation has failed twice already with 2 another lenders??
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Sounds like your having a serviceability problem?
Change your loan structure from I/O to P/I – might get you over the line….really depends how tight your serviceability is and which lender.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi,
Not a pro..but undergoing my 1st subdivison via the Hornsby Shire Council as well ( Cheltenham)…and i can tell you they are a pain in the ass! my land is 1,250 and it's a corner block with 2 street access – took ~5 month..
You should DL the DCP ( Development control plan) it explains EVERYTHING! Hornsby has 8-9 different DCP depending on your zoning.
Click below for PDF
Happy reading
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Funny enough, i got my roof restored and painted only 4 month ago with Modern Roof ( largish company in Sydney) http://www.moderngroup.com.au/roofing/roof-restoration.aspx.
Quoted me $19,000- neg down to $11,500 ( for a massive place and extremely high pitch roof- 1960's style place); job finished in 4 days no hassle..a bit expensive but it was top quality/service and comes with 10 years guarantee.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Negative Gearing was removed/reduced when Paul keating was PM- Back in 1998? sorry not 100% sure about the date…def before my time
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
JPS25 wrote:Got past the solicitor who was against NRAS on the grounds that it was social housing*slaps forehead* NRAS is NOT social housing…
To be eligible for NRAS, the tenant NEEDS to be working….
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
From an insurance point of view- even if you have "Rent default " , the rent need to have defaulted for more then x number of weeks ( standard is 4- but it differs insurer to insurer) before you can claim, as your bond should suffice.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Paradime wrote:Michael, other than Citibank, which other institutions are you referring to that go to 85% with no LMI? and do they accept NRAS security at that level?However original poster only mentioned NRAS was for their CURRENT property…the new property they are buying is not NRAS ( from what i read) .
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Mat,
I'll won't comment on the finance, capital gain or investing strategy side of things as you seem more interested in the fees.
Some of the standard fee and cost with Over 55's-
* Strata – self explanatory
* Special levies, sinking fund– self explanatory HOWEVER it's slightly different for over 55's in that once every x number of years the complex will undergo a major refurbishment ( paint, upgrade the chairs, kitchen etc…) and this can cost quite a bit…so a always check HOW often they do these " major refurbishment " , sometime called capital maintenance or replacement.
You have to remember, the owner/body corp that's running this complex is also running a "business" so it''s not your standard unit/strata apartment; like all business it requires upgrades so that it remains competitive.
Damage to shared faculties are more common- self explanatory
Insurance – Not your standard insurance
Each over 55's village has its own terms for fees and charges. Depending on the type of legal structure and body corporate.
That's all i can think of for now…
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
wilko1 wrote:i was under the impression that if you did a straight forward one for one security substitution that borrowing requirements were relaxed. I.e You wouldn't have to provide documents proving income/payg or self employed income again for the substitution to occur. Just a valuation to show the new security is of the same or greater value then the original.My scenario for this would be a self employed builder/developer who already has a series of loans for development projects and is happy to just substitute a old project in for a new project without having to go through providing all the income requirements again.
Sorry mate, that not simple; Full assessment is required.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
You are required to live in the house for a minimum of 6 months in the first 12 months. So no you don't need to move in straight away; however there are Capital gain benefit ( and the 6 years rules) that you may have to weigh up and consider.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Have your accountant advised you on the cons and pro of setting up a trust especially if your planning on selling 3 of the units??
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Boarding houses with management right and short term rental will be treated more like a "business" loan rather then a commercial loan; so if your after a true "boarding" house with less hassle- aim for one with medium-long term residental rental rather then your "motel/backpackers style" boarding houses.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Personally for my capital growth properties- i prefer to invest in the dip of an upwards market, meaning not the bottom as such as it's hard to predict where the "bottom" really falls…so i rather invest when the market start to pick up and increase = instant capital growth = equity.
Regarding trust, it will depend on your personal circumstances and the property in question, generally speaking if it's your first IP i would say buy it under your personal name and reap some of the tax benefits + it will allow you to understand and appreciate the investing process more efficiently.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
$1,700 ….thats one costly structure…
Save the $1,7000 and switch bank i'll say….80% LVR on NRAS is freely available ( interest rate as low as 5.39% fixed or 5.60% variable) + there's no need to cross securitize your loan…
+ some banks do offer no LMI up to 85%…
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Off the top of my head…
1. Originally money can';t be borrowed for any renovations ( structural or cosmetics )
2. As of 12-18 month ago ?? they changed the rules…Money can be borrowed for REPAIRS only ( including structural repairs)
One of my client required a certified engineers report before they could carry out the repairs as borrowed funds.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Jason,
I understand your frustration, however given that it takes a good 2-4 hours ( research, calling, confirming with the banks, evaluations, writing up the recommendation) just to plan the preliminary strategy and recommendation per client, it make sense in certain circumstances to ask for paperwork as " commitment".
Most brokers i know works close to 10-12 hours a day, and to make it fair to our clients we try to dedicate as much time as possible to each client and not to rush through any steps or recommendations- after all we are helping our clients to finance and structure one of the most important asset of their lives!!!! so we have to allocate our time in a smart and fair fashion, by helping the ones that really needs help and the ones that respect our service, even if it's free.
Personally 70% of the time i would be more then happy to spend 2-4 hours on a new potential client and provide my advice freely; however for most new self employed clients or mass email clients i will always ask for either; A sale contract, Payslips or tax returns after the 2nd phone/email appointment …in fact they can hide their names/personal details if you really wanted too.
Self employed- Most clients have no idea how to read a tax return from a banks perspective ( rolling lost, add backs etc..)
Mass emails – You know they have spammed 10 another brokers for advice…atleast have the respect to address me by my name ( rather then Dear Sir/madam) and have the the courtesy to let me know if you have found a broker already, so we don't waste yours or my time.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
