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Hello guys
very broad question I know !!!
but am in the process of looking for another ip and I do not want to use my old brokerMY SITUATION
currently have 2 ips with cba one of them borrowed 106%
both CF+ full doc loans.i currently have 20k in savings and i am looking to borrow as much as i can without realizing equity ! !
i take home 850pw and have no liabilities what so ever would like to buy between 250k-290kWhat are your thoughts on my situation ? do i need more savings etc
please ask for more information if required1. Sounds like you are cross securitised – fix that up ASAP
2. Do an upfront valuation and access the equity and try and borrow 105% of the purchase price (or as much as possible) without cross securitising any properties.
3. Ensure that loans are interest only w/ linked offset. Accumulate all your funds in that offset.
4. CBA is a very conservative lender when it comes to servicing so plan for this long term
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ANZ is the worst lender for multi unit construction under resi lending. They have a max LVR of 70%.
If you are talking construction and 4 units on a single title then only Bankwest, RAMS and Heritage will lend to you under resi lending. Max LVR would need to be 80%.
RAMS would consider 5 under a single title but case by case and it must be a strong application. Anything over 5 is consider commercial.
IR is not going to change – LVR is the big thing that varies.
Also remember that under resi lending – your biggest problem is going to be valuation as its valued in one line rather than end value.
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Sounds like you need a turnkey solutions – which is for the person to ascertain the DA and CC and then develop, get the OC and hand you the keys – is that correct?
If the property is in QLD then its best to contact RPI from this forum – he would be able to put you onto the right people.
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Is your issue associated with the cost of construction only? Which state or city is this? Do have DA plans or CC plans?
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Ah ha funny story – Adelaide Bank doesn’t like it but Adelaide bank funded mortgage managers can process it fine.
Why are you going with Adelaide bank though?
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Its a crap investment for numerous reasons with the main reason being difficulty in financing the property.
If the serviced apartment is under a lease which this seems to be then only St George, Citibank, La Trobe and Widebay will touch it and St George and Citibank have a policy whereby they will not financed more than 25% of the units in the development.
Property must also be fully self contained.
You will also have issues with valuation not just today but also tomorrow if you want to do equity releases.
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Trusts are ok with must banks. Who is the lender that said no and what type of trust is it? i.e. Family, Unit, Hybrid?
It sounds like it may be a Hybrid Trust.
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Only 4 lenders – Suncorp, St George, NAB and CBA will lend to Hybrid Trusts so be wary of this as you are seriously limiting your lender selection.
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Westpac only goes to a max 65% they can go 70% but its on a case by case basis (meaning that your application would need to be extremely strong). Plus they will want to cross securitise your resi property.
BoQ also has very conservative servicing so again you need to have strong servicing to go with them.
I reckon you will find bank west to be your best option.
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RAMS *may* consider it under resi lending but the application would need to be extremely strong and max LVR would be 60%.
Under commercial lending – Bankwest would do the loan at 70% LVR with no presages provided that you can service the loan without the use of the proposed rental income. Rate should be the least of your concerns but doable at approx 6%.
Is there any equity in existing property that you can tap into?
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1. LVR – big difference as depending on the property type Lender A may lend 50% LVR whereas Lender B will give you 75%.
2. Features like offset (yes you can get an offset even with a commercial loan)
3. Fees (this the variation between lenders could vary quite a bit)TheFinanceShop | Elite Property Finance
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Hi Isabel,
Try Colin Rice who also posts on this forum – he gets good feedback and his comments display that he has a strong understanding of loan structuring.
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That explains a lot. Different lenders will lend different amounts based on your income and liabilities. ANZ is down there with the links of Bankwest and ING as one of the more conservative lenders. Other lenders like AMP, NAB, Macquarie will certainly lend you more.
Also why are you doing a LOC and not a term loan. Its cheaper and there is no repayable clause?
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What you need is lo doc 80% no LMI – i.e. RAMS.
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What is the LVR?
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Not sure if Marilyn is still working at Best Real Estate in Wenty but she was excellent.
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Definitely commercial – the contract of sale should have “boarding house” listed on the front page.
Is there an existing agreement (not expired) in place as this will be quite important.
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1. Don’t cross contaminate the tax deductibility of the loans. Ensure that you set up a separate loan account for the equity release
2. Single income is not an issue – plenty of applications have single incomes in the family
Can you please confirm:
1. Lender
2. Loan amount and approx value of the propertyTheFinanceShop | Elite Property Finance
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Hi Oscar,
Nice work. Are the majority of your developments in NSW? Can you recommend a savvy broker that is switched on with the process of getting money for building projects for developers that are the registered builder? I have found previously that when a bank finds that i am the builder and the developer they become increasingly difficult to deal with. Any suggestions?
Thanks,
SteveMany do owner builds but LVR is limited to 60%. One lender will 75% and the other will do 80% (or more depending on the strength of the application).
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Its all manually entered into the backend. API’s are way too advanced for the industry but its not too far off. The problem is often the lenders don’t have an API themselves to feed the data automatically into vendor (aggregator) softwares.
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