The biggest and most important aspect is the future plan – all professionals i.e. Accountants, Finance Guys, etc should be asking and need to know your future plan/strategies so that the current structure whether it be asset protection, taxation or finance align with those strategies.

Make sure you have this penciled before meeting…[Read more]

That works out to be less than $1,500 per sqm turnkey – thats incredible.

Regards

Shahin

Your construction cost for 5 units was $402,000 – is that correct?

Also did you have to pay any contribution costs (is that applicable in Vic)? Also what about the site costs like concreting, retinaing walls, fencing, stormwater and sewer drainage?

Regards

Shahin

Depends on the market – when market is flat and there are no buyers you can't stop Re's calling you but when the market is up and there are too many buyers many agents don't even bother calling you.

Have you tried talking to the principal?

Regards

Shahin

Excellent post tax incentive per year for the next 10 years however a lot of developers overprice their stock. 

There is also a risk that the Government may can the incentives however personally I doubt that this will happen.

Its a fantastic scheme imo but finding good stock where the numbers add up is mighty hard to find.

Regards

Shahin

No harm in talking to a broker or a banker about your financial position to see what can or cannot be done. Also what you may need to do to purchase the type of property you want to purchase.

I would err on the side of what Freckle is saying in that you should focus on saving but concurrently research and understand the market that you are about…[Read more]

You lose the deposit if you cancel within the cooling off period. If you go beyond that then you are in trouble.

Why did't their solicitor extend the cooling off period?

Regards

Shahin

There are over 55's development in certain areas which are quite valuable and then there are these types of properties. They are a money sucker and these badboys are very hard to finance.

Regards

Shahin

The whole point of super is creating a nest egg for the future and also diversification. Even if I could – I would never think about putting my super in my mortgage. 

There are plenty of information on purchasing assets (both residential and commercial) under an SMSF – it lists all the pros and cons, costs, etc.

Regards

Shahin

I would never refer someone to a specialist default lender but this is an example of a time/scenario where you have to and unfortunately pay the premium price.

Regards

Shahin

Best to speak to your banker and broker about your specific borrowing capacity – never rely on online sites as they do not paint the correct picture for you to build your strategy. 

Other things to consider is deposit amounts – how much to use, etc.

Regards

Shahin

Are you planning to purchase more properties in the future?

Regards

Shahin

It doesn't sound like you are a newbie or clueless. Developing is usually the better way of building equity but you need to ultimately do the numbers. Have you constructed before? Have you built multiple dwellings at the same time?

Regards

Shahin

By all means negotiate with the developer but in all honesty I don't like for chances and secondly if he does drop the price I would be quite concerned in that what if he drops the valuation on future properties in the complex?

Regards

Shahin

Even if the default is paid in full not only will it not fly at 90% LVR – it will not fly at 80% either. As I said the default is too large and even worse its a financial institution default which is much worse (in the eyes of the lender) than a telco default. It would have to be an incredibly strong application to fly at 80%.

The only option…[Read more]

There are many – the top 3 are Pepper Home Loans, Resimac and Homeloans Ltd (in that order). Pepper does has quite conservative servicing. These are very complex applications so you need to ensure that you structure it correctly.

Regards

Shahin

What im suggesting is that your banker or broker call the valuer and negotiate the increase verbal rather than send a dispute form first. Also have you considered ordering a valuation with another bank?

Regards

Shahin

Ok in that case we are definitely talking about a specialist lender. You will not be able to go via mainstream lenders.

The interest rates are quite higher (close to the 9.50%-10% mark) and the application or risk fee is around 2%.

You have an option but you will need to pay.

Regards

Shahin

If that lender was CBA or ANZ I wouldn't worry as they have quite conservative servicing. Westpac and NAB have very generous servicing. You have plenty of ways to increase servicing – I doubt if you don't find a solution.

Regards

Shahin

There are different types of defaults. Telco defaults are viewed more favorably than financial institution defaults. Defaults under  $1,000 are viewed completely differently to defaults over this amount.

Your credit card debt of $10,000 falls into both categories that are viewed less than favorably. 

Questions:

1. Why did the default occur? Was…[Read more]