Hey guys-
I was just wanting to know what sort of return on investment most people would look favourable upon for a cash investment…
say $50,000-$100,000 over 12 months?
I'm looking at maybe finding someone to supply bridging finance (deposit) for a triplex building loan. I already have possesion of the land..
Will it be 1st mortgage and if so what lvr?
CHeers
Yours in Finance
Richard Taylor | Australia's leading private lender
Depends on the risk and type of investment and if it is leveraged etc.
Something like bridging finance for a development is extremely risky, so I guess around 20% over 12 months.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
lvr is good, valuation for the 3 sites has come back at $420K each… land mortgage is currently @ $365K, and building costs are $487K… All subdivision and associated costs have been paid and im waiting on titles now. Ive been pre-approved with ANZ homeside lending… But i am getting a little worried about serviceing because at full draw down, i will be at around $5,500 in repayments and i only earn around $6,200 a month in hand.. i have very little expenses…
My thinking behind this is because i have no cash available or line of credit… what happens if something was too arise and i cant get the cash? I guess this is the risk with this kind of investment? lol
I think you will be pushing it to get someone to lend on 2nd mortgage on such tight figures and also limited serviceability.
Anz and Homeside are 2 separate lenders and both have fairly tight serviceability criteria so i would be getting your construction application before serviceability rates increase.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
yeh sorry homeside lending.. Yeh i think i should be fine… the pre-approval is valid for 6 months… and its only been about 2 months… I just need these titles! plus i guess i have some time to save surplus cash before the drawdown is at its maximum!
It aint easy being 22 and trying to do all this with no assets and saving every penny!
I would be double checking that Pre-approval.
Homeside Pre-approvals are not for 6 months these days in fact anything over 60 days old will require new documentation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Pre-approvals are essentially meaningless.
I remember when I was a broker, it was possible to produce a homeside pre-approval from a serviceability assessment without it even being seen by the lender – don't know if this is still the case.
I would be surprised that a lender is willing to lend you when you yourself are unsure if you can service. Usually the lenders are much more conservative than the borrowers.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
90 days it is actually… shyzen… i assumed 6 months… good thing you brought that to my attention! that means i have 1 month
OK now im starting to worry.. these titles better be ready asap
I was told i have unconditional approval i just needed the titles?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
