Sis is correct. it is basically using two (or more) properties as security for a loan.

eg. You have a house worth $200,000 with a $100,000 loan. You buy an investment property worth $200,000 borrowing $220,000 in total. For the IP both the IP itself and the home are used as security. This is an advantage as you can borrow 100% or more for the…[Read more]

No

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

There are commercial second mortgage products available, but the interest rates are around 20% with a mximum LVR of 80%. It may be cheaper to find individuals to help you out.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

The loan will be in the name of the trustee and the directors of the trustee will be required to personally guarrantee the loan. It works out to be virtually the same as getting a loan in your own name, but you may have to supply a copy of the trust deed as well.

Trust will pay mortgage and all deductions, any profit left over will be distributed…[Read more]

Simon

That reminds me, I did a 95% loan with no LMI.

I had a client that purchased a unit, the valuation came in at 20% more than purchase price and the bank lent him 95% wihtout mortgage insurance. So it is posisble if you can get a good bargin (very rare).

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

You’re not going to get too far with standard low docs. GE has a maximum lend or $800,000 per borrower and PMI $750,000 per borrower for total loans when using a low doc. So that is about $1.5 mil in low docs. if you already have loans mortgage insured, these count in that total.

Then there is ING, who do low docs without LMI at 75%, but no…[Read more]

It is standard practice for the mortgage insurers and the banks to use valuation where the contract is over 12 months. If there is no LMI involved, the banks ‘may’ consider lending on val if it is nearly 12 months.

A lot of people are now finding that there has been no growth at all in the last 2 years for off the plan…[Read more]

Having all (or many of) your eggs in the one basket has to be more risky than spreading them out.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I beleive that ‘the rules’ are different between the ATO and centrelink. Centrelink assess you on your income. If their house was rented than that rental income would result in their overall income increasing and so they may end up reducing their pension because of this.

They also base the pension on the assets of the pension(ers) with the home…[Read more]

Mining town?? I would be very weary, especially if the valuation is 15% below asking price and capital gains prospects are limited.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I am often told that customers have gotten different figures when approaching the banks direct and when getting their borrowing capacity done on the same lender with different brokers.

It seems most bank estimates are on the low side. this is probably due to the bank’s (untrained?) staff not doing it properly by adding anticipated rental incomes…[Read more]

In my opinion, you would probably need an option contract with the vendor, and then you could sell the option to the end purchaser. You could probably avoid paying stamp duty on the land with this technique, as you would never settle or exchange contracts, however stamp duty may be payable on the option contracts-better check with the Office of…[Read more]

unforseen things that can happen include:
-one or more parties deciding they want to pull out prior to completion.
-blow out in costs, one or more parties not being able to come up with more money
-one party going bankrupt or getting into some trouble. creditors could possibly come after their asset.
-borrowing capacities being effected-may…[Read more]

Fullout

I think you owuld want to get the profits into a trust somehow. if you use a trust, all profits could be diverted to another trust or a comapny or individual. This would give you greater flexibitlity than just using a company.

You had better talk to an accountant on what sort of trust or maybe a combination of trusts, eg unit trust where…[Read more]

Hi Scarecrow

Most brokers have access to these types of funds. LVRs are around 70%, but can go up to 80%. rates can vary depending on the security property type and location etc. Generally, these are easier to qualify for and some do not even do a credit check.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Pisces. a buyers agent would probably charge a fee of around 2% to 3% of purchase price, but would often reduce this as they would probably receive half of the selling agents commission.

Also, be careful that your ‘spotter’ is legally entitled to receive a commission, in the state they are in, for a real estate related…[Read more]

try either of these:

http://www.strategicwealthmanagement.com.au

http://www.mintgroup.com.au

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Really, there is no way around paying LMI on over 80% lends. There are lenders out there that do lend more, (eg bluestone, Liberty, GE, Peppers) but they all charge higher interest rates.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Brendon

Good point, but you still need to qualify with the added repayments for your personal loan, and you generally cannot borrow 95% on a refinance, the standard is 90% max. Royal Guardian can do a 95% refinance tho.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Maybe the vendor just lent him the deposit. If the title was in his name, then I think this was what happened. This would not be illegal – even in SA.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au