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Don’t get me wrong though Macquarie has improved massively over the last few months and they are very easy to to business with.
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Macquarie does not have their own DUA at all but is starting to place more and more stuff on their balance sheet.
Macquarie has niches but non-resident lending is not one of them.
It’s hard recommending a lender when you have a tiny piece of the puzzle.
The most ideal portfolio (servicing permitting) would have been to start at CBA and start high (they do 95% for aussie citizens working overseas) and then move onto another lender. The problem will lenders like NAB, AMP, etc is that they don’t do loans over 80% without policy exceptions. So if you ever need to take a property into LMI then you can’t with these guys.
Just comes down to planning more than anything.
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Their DUA is still $850,000 but thats not full DUA and sooner or later you will have issues when you go into LMI territory which I see quite often with lenders that don’t have full DUA.
Since he has 5 properties already then it will definitely become an issue if he needs to access MI so AMP’s not the best fit for him.
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Boy do I hate capital gains tax. Its pure evil.
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Really like the new signatures steve. I think everyone is starting to like the new site.
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I had 2 recent scenarios where the client wanted to hold onto all the properties so they obviously didn’t want the presale condition – we wrote both loans with Bankwest and found them to be very pragmatic.
Out of the majors CBA and NAB are the only ones that will consider no presales. ANZ won’t even want to hear about it and Westpac well lets not even go there.
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Hi Shahin, I am currently working for a logistic developer in China and the company is listed in Singaporean Exchange. My salary is denominated in RMB. The issue i have with Westpac and other lenders is that they completely disregard my overseas salary cos they don’t take into consideration RMB denominated income, which absolutely kills my serviceability issue. Any thoughts?
Cheers
JohnOk firstly the real issue with AMP is that they are a securitised lender and they do not have their own DUA. Even if your application ticks all the boxes – the underwriter can still turn around and say “nope not lending you any more money”. I seen this happen to quite strong applications.
Not sure who has advised you that westpac do not accept RMB – as they do. I normally deal with HKD, Pound and SGD but know that they do RMB.
Westpac has has short comings as well so you need to really sit down with a broker and establish a long term plan. For example, Westpac do not like it if your rental income is more than 50% of your total income.
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Also order your credit file if you haven’t done so already.
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Sorry if this is a silly question but is it still unpaid or you have paid it and you are referring to the fact that the default is on your credit file?
If you haven’t paid it then you need to a) pay it off ASAP and b) concurrently talk to them about removing it from your credit file.
Who was the institution (i.e. finance or telco) and how much was the amount?
Your income is quite high and this is great so you certainly have areas in your application which hold weight.
Finally don’t apply with any bank unless you have a clear strategy of which lender you are going with. Unnecessary hits on your credit file will not help you.
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I actually like the new site – yes some things need improving but I’m sure it will come with time.
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Most lenders will want presales – there are a few lenders that will allow you to not have any presales however in those cases you would need to be able to service the debt without the use of the proposed rental income of the construction. Therefore servicing would need to be very strong.
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Hi John,
It doesn’t matter whether you purchase under individual or trust when it comes to servicing.
AMP is actually one of the more generous lenders when it comes to servicing however different lenders treat your overseas income different. Westpac and NAB are definitely superior in this space. CBA is quite handy when it comes to LMI loans but since your portfolio is at 80% – you definitely have more options.
Are you an employee in China or Self Employed?
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"negative gear with negative cashflow"? I thought you could only negative gear with positive cashflow? Wait im confused.
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Plenty of lenders will do company titles namely AMP, CBA, ANZ, Dragon and Westpac. An important factor is going to be LVR and postcode.
Also do an equity release against the company title property if possible and have your FIL gift you the funds. Its much cleaner than tying the property up.
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From the sand to the surf – you will love it in the CC. Very laid back and awesome beaches.
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I would do a 1 bedder as well but it depends on the area. I had one client do a 3 bedroom 60sqm GF because it was close to the uni and we was just renting out the rooms.
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Since the properties are cashflow positive and not costing you anything to hold – then hold them and sell them only if and when another/better opportunity arises.
A lot of people start flipping their portfolios gradually as they come across really good deals.
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The good:
1. Massive depreciation benefits (which of course is only applicable for investments)
The bad:
1. You cannot see the workmanship until the product is delivered which by then is too late to back out
2. You generally pay a premium for a new dwelling vs an established dwelling
3. Valuations may be an issue depending on the area and this may significantly impact your ability to complete the purchase
My vote would be no to the OTP. Invest in a better area, wait and then build on the land at a much later time. You can always change the house but never the location of the land.
Is the property a house and land package or are you buying land and then buying?
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You also need to factor stamp duty, legal fees and building and pest inspection fees. These will equate to about 5% – so if you are aiming for an 80% LVR then you need to have around 25% deposit.
The only thing I don't get is why not go for 95% or 90% LVR loan and use less deposit. Less its LMI – but often cash is king.
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Are the above numbers on the property you currently own?
How much is the debt currently owing on your existing property?
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