Having been a traditional property investor for a number of years, I’m keen to try wraping my next and future properties. However, I’m struggling with the notion that there are enough potential wrap clients out there, considering the plethora of mortgage brokers and low doc loans available. I know of one low doc lender offering 6.5% p.a on 90%LVR. Is it still possible to find wrap clients in todays mortgage broker market?? [confused2]
I guess there is always someone who will have a problem with regular finance but I agree that with the saturated broker market and every financial instition under the sun trying to lend money, there are not as many wrap deals around.
As a sideline I use lo doc for my dealings but haven’t been able to get above 80% LVR. Who is doing 90%? (so I can kick my brokers butt.)
markk
Happy Hunting
http://www.kentscollections.comStormbird
I’ve found I’m getting less enquiries, but the ones I do get are much better quality (ie the tyrekickers have dropped off a bit).
Still seem to be wrapping houses in a similar timeframe to previously.Keep smiling
Felicity
There are still plenty of ‘credit impaired’ people out there that will not qualify for low doc loans. These people have little choice but to go with lenders like GE Money who charge up to 10.65% for a 90% low doc loan. This makes paying 9% on a wrap look cheap! And wraps usually require a lot less dpeosit.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]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
And, there are various postcode restricitons, especially for low doc loans. This means, that sometimes it is impossible to get low doc loans in some area.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]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
I’ve had 50+ phone calls in the last 4 weeks, about 25% of the callers had a substantial regular income.
There is still the risk and deposit combination banks and others don’t touch.
Small deposit and non-long term employment stability, perfect wrap clients and a lot of them want a house
Live, Learn and GrowLifexperience
We’ve had three enquiries in the last four weeks and have wrapped all three. Like Stevo says you only need one serious buyer.
The $12,000 FHOG also makes a huge difference
SF
We settled 13 new deals in November of this year which is more than any previous month in the previous 8 years.
We could have settled double that anount but have decided to tighten up our lending criteria.
As Terry mentioned many of the clients could obtain non traditional style lending at an array of interest rates but choose to to take a wrap deal.
Certainly the quality of application has improved no end.
Thankfully we are closing over Xmas and the New Year but don’t let anyone tell you the level of enquiries is dieing off.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
How do you sort out the legal paperwork for a wrap? how do you workout who would be a good risk?
Hi Rob, you wouldn’t attemp to do dangerous electrical work if you weren’t qualfied to do it….so….[buz2] We get our solicitor to write up our contracts. Easy as that.
We also do credit checks on the applicants using Baycorp Advanage. And we meet with them and sound them out. This isn’t as labour intensive as it sounds , however we don’t do 30 wraps a month like the big boys do!!I’ve been a traditional propery investor for a few years and have purchased 6 properties, but have now hit a wall on servicability. I now want to look at cash flow positive stuff to continue my investments and wrapping seems like a great option, I am about to purchase steve’s wrap pack to learn a little more about this wrap technique, but can anyone tell me if the party is over on wrapping, even my work colegues have now heard about it, does it really work.Guess I’m just looking for general advice.[cowboy2]
hello
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