Hi Kimtruong81

There is not much difference between owner occupy and investment loan products, especially from a banks viewpoint. In fact, I’ve heard of some borrowers go the other way – say they are purchasing for investment purposes and then live in the property (so they can use the estimated rental income to qualify for the loan).

If you’re…[Read more]

Hi Vinh

Banks use different valuers (for example ANZ use Charter Keck Cramer in Heidelberg).

Most banks use external valuers.

quote:Currently thinking of using the NAB, CBA, Rams, Aussie Homeloans. I got pre-approval from the CBA but I think I can get a better deal somewhere else as I dont think I have exhausted all options yet.

Depending on…[Read more]

Hi Fullout and others,

I have written an article about this very strategy. The article addresses the lending issues associated with this strategy. You can find it on this site at https://www.propertyinvesting.com/freestuff.

It’s the first artice titled “No money down…”

I hope this helps.

Cheers

Stu

Property & Finance News
at…[Read more]

Hi Essykay

I would advise client not to cross-collateralise for the following reasons:
1. It may increase your costs if you wish to drawdown on your equity (e.g. some bank charge extra admin fees if they have to deal with multiple securities).
2. If something goes wrong with one of your properties then they can sell all of your properties to…[Read more]

Hi All

Here’s a trick. I advised a client and friend of mine to do this recently and it worked with no problems.

Borrow 80% and take out a personal loan for the remaining 10% (or what ever). The bank doesn’t mind (so long as you meet serviceability). You can then pay off the personal loan or refinance it into the mortgage after the property has…[Read more]

Hi AllanFC

As a general rule, the further out from the CBD (of large towns/cities) the higher the rental yeild (and the lower the capital growth). Therefore positive cash flow properties are often found in country areas. I’m not that familiar with Nth Queensland so it’s difficult to give you examples but try Rockhamton (I have a client that…[Read more]

Hi Kutty70

As a general rule Brad Sugars (www.bradsugars.com) recommends that you don’t spend anymore than 10% of a property’s value on renovations. I guess this is a reasonable rule which is aimed at avoiding overcapitalising a property.

My only other advice is do your numbers. Make sure the renovations are justified (e.g. by reducing the…[Read more]

Thanks very much Essykay. I’m pleased that you found the info useful. Good luck with your future deals.

Cheers

Stu

Hi Scotty

I recently wrote an article about this very question (i.e. no money down strategies, building property portfolios quickly, etc). I interviewed about 15 or so banks and a valuer. You can find the article on my website at http://www.prosolution.com.au. Personal Investor picked this article up (which is also on my site).

However, it’s 1MB so you…[Read more]

I looked at a residential development marketed by NII and went to their seminar. It was a waiste of time. The seminar was full of misinformation and scare tatics. The development was over priced and full of lies. They smelt! I would not go anywhere near them no matter how good a deal it looks.

Beware. Keep your eyes open.

Cheers

Stu []

You guys are a tough crowd!!!

Hi Guys

Just a quick note. Heritage charge a break fee of one months interest if you repay a loan (this exists for the life of the loan).

E.g. If you have a $100k loan on interest only and repay the loan in 5 years time then heritage will charge you one months interest as a repayment fee.

You should include this cost in the AAPR calculation to…[Read more]

These idiots (i.e. James) taint the reputation of mortgage brokers. I have a couple of quick comments to make:

1. Don’t pay mortgage brokers anything! I have never charged a client. If I was in a situation where I thought I might have to charge (can’t think of one) I would only ask for the money after I have achived a result.

2. Always seek a…[Read more]

I’m a mortgage broker. I must admit, at times, we have offered clients small cash incentives. However, it can be difficult to do so becuase we spend a lot of time for clients making ensuring we find the best deal (include writting a mortgage analysis report, etc.) and ensuring the whole loan settlement process goes smoothly. This can (and should)…[Read more]

Hi Nathan

I think St George has the solution your looking for. It’s offering a special with it’s professional package. Based on your loan size they will offer you 0.60% off the standard rate for the life of the loan. The other features are:
– $300 application fee.
– $5 monthly fee.
– 100% offset.
– Redraw (min $2,000, cost = $25).
– Early…[Read more]

Hi Bruce

I am a qualified Chartered Accountant with many years experience working for 2 of the Big 4 firms. I am also a property investor. I have recently set up my own mortgage broking business. We aim to provide the professional service that investor need and expect (which includes the preparation of a written lending report, etc.). I urge you…[Read more]