1. What does LVR stand for?
2. what does HUD stand for?
3. In a lease option, according to some material I’ve been reading, the option price (deposit) is put toward the final deposit on the property and so is usually part of the rent. Does the seller put this money aside in a bank account or something else? I’m a touch hazy on this…
4. what sort of insurance does one pay on an investment property? what’s the average cost of insurance?
Edited by – [email protected] on 08/01/2003 8:30:11 PM
Gday Nathan
Q1. LVR stands for loan to value ratio. An LVR is worked out by dividing the total borrowing on a property by the value of that property. You then multiply the answer by 100 to com up with a percentage ratio. ie 89 percent lend or LVR of 80
160,000 borrwing on a 200,000 home.
160,000/200,000=0.8 0.8*100=80
Banks like to lend up to a LVR of 80 because they figure in a firesale they should atleast recoup their 80%.
Q2.Sorry no idea what HUD stands for.
Q3. In a lease option you can write your own clauses but generally your payments are considered rent and can be spent as the landlord sees fit. When the buyer excercises the option the settlement amount is adjusted down by the amount or percentage of rent already paid.
Q4.The minimum insurance I would get on an investment property is building insurace allow approximateley $200 for every 100K but premiums vary greatly from place to place. I would also recomend taking up landlord protection.Good Luck
rossco
Thanks for the answers, Rossco!
Edited by – [email protected] on 09/01/2003 12:24:59 PM
Nathan…..where did you see HUD? Can you give us a context ?
EnjoyAD [:0)]
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithThe context was from this post:
http://mastermindforum.com/phorum/read.php3?f=2&i=24273&t=24273quote from the message: “I have a couple that won a HUD bid, but can not qualify for a loan. The deal is that we’ll do a double closing, I’ll get the title, and then “sell” to them on a lease/option.”
email: g e n e r a l g h e r k i n @ y a h o o . c o m
phone: 0405 411 098Nathan I have sent a question on the Mastermind Forum so we will find out. My guess is though it is an American Foreclosure or some such thing.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHUD= The Housing and Urban Development Department in the USA
http://www.hud.org for more info
ah, thanks. It’s always confusing when you see a post using unexplained jargon and you have no idea what they’re talking about.
email: g e n e r a l g h e r k i n @ y a h o o . c o m
phone: 0405 411 098
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