I will apologise in advance as this will be a little long winded in order to give you the facts.
[confused2]
My 3 IP details as follows:-Bought Valued Rent
1.$227 $380 $350
2.$320 $330 $320
3.$212 $240 $250I have been looking at purchasing property (duplex $203 rent $200). I wanted to use equity from all properties to purchase this property I have been mucked around by the broker (since been fired)who has told some porkies to the banks who at first under valued property, I then needed the banks to do full valuation which bought it up but not enough for them to relook at it as time is ticking.
Now I have had the brokers manager come along (trying to salvage things)and he said it is too
late to use equity from all of houses to meet the settlement date of 17 Mar but could do a stand alone loan for the property.He stated I would need 10% dep $20,300 and stamp duty bringing $30,000. I have this left from inheritance but would not leave me anything in bank) Interest only would cost $1020 per month minus rent $200 per week.
He has asked me to sleep on it and I need an answer by tomorrow.
This whole process started on 7 Jan.
Just wanted to ask where have I gone wrong?
What would you do, would you still go ahead with the deal and then later roll over exsisting loans to use equity later on down track?Thanking you in advance
Jenny1
Mar 17 is still 3 weeks away. You have plently of equity in IP1, why can’t you use this, but are able to get a stand alone loan? They must be looking at a different lender to your existing ones, so cannot refinance in time? It takes an average of 24 days for the refinance to go thru.
Other otpions are
1) to stay at the existing lender, and cross collateralise.
2) increase loan size on IP1 and withdraw cash to use as deposit with loan from new lender
or
3) change to a new lender that allows quick refinances
4) get a 95% LVR loan with LMI added so you use less of your cash.Re option 3): there are a few lenders out that that can now refinance within approx 5 days. They can do this by using some sort of title insurance which enables them to settle without having otained the title deeds firstly from the existing lender. Once it settles, the old loan is paid out and title deeds are obtained.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Thanks you Terry, but due to the fact that the Broker (one that is fired now)told me that I would have no worries re obtaining loan and it’s in the bag I told solictor to go unconditional!!!!
But there’s more…my solictor told me today that vendor in breach of contract as wants to add further names to the contract and we could pull the pin if we want, but this is only until tomorrow. [confused2]
Do you think that I can ask solicitor if I can rent the property from the 17 Mar for the few weeks until I get this finance mess sorted out?
Jenny
Jenny1
Perhaps you can get the solicitor to use the breach of contract to negotiate an extension to your settlement and change over to a better broker. Give him time to work tho!
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi all
Thought I would give you an update to put you out of your misery. Spoke to Solicitor re contract change and we agree as long as we can extend settlement date to the 31 Mar. I also said I would pay market rent from the 17 Mar until 31 Mar.
Now just playing the waiting game. Fingers x
Thank you all for your help
Jenny1
Jenny1,
A commercial laundry just sold near me for $200K, only difference was it was renting at $ 400 per week and the tenant paid all the outgoings.
My advice would of been to dump what you were looking at and chase the far better deals on offer…I was going to suggest the broker did you a favour by stalling your application…but…
Good luck with your buy..
Cheers,
Dazzling
“Go hard or go home”
Dazzling
Good to hear from you again!
But with the advise from the now sacked broker that the loan was all but in the bag, I told the solictor to go unconditional [confused2].The good news is the other party has rescinded the contract (to add someone else’s name on the contract)and this has given me 14 days to finalise finance and 40 days to settle.
Just waiting to hear from the bank on Mon/Tues to see if loan is approved.
Huge learning curve, I also booked flights on the 17th for myself and sister to clean/renovate before renting out. At this stage might be looking at just going up there for a holiday.
Question, would you be looking at getting a broker in at this stage to see who comes back first with approval?
Thanks
Jenny
Jenny1
Cheers Jenny,
I’m sorry I can’t afford an opinion on finance brokers as I have only used one once in my life, over ten years ago now, and didn’t have a very good experience.
Vowed never to use one again and since then things have looked on the up and up.
I’ve discovered through a good relationship with my banker that the rates now offered to me are better than what any broker anywhere in the country can deliver…
Now I’ve really thrown down the gauntlet to the MB’s on the forum…watch for the replies !!!
Good luck – it seems you are on the right track with your investments anyway. You must have a good sister to help you clean your IP’s, or is she partners in it with you ??
Cheers,
Dazzling
“Go hard or go home”
Dazzling
Sister is a love job, has no interest with the property [biggrin]
Cheers
Jenny
Jenny1
Hi Dazzling
If you haven’t used a broker for over 10 years then how do you know what you are getting now is better than a broker?
The best rate (as a broker) that I have negoiated is 1.15% off the standard variable rate for the life of the loan. Are your rates better than that?
Cheers
Stu
Stuey,
I suppose because they constantly let me know what they can do…however they don’t seem to be able to compete with my banker.
Terryw very kindly answered an enquiry this morning, and he admitted his best rate was at least 0.5% higher than what I just locked in….I don’t know your industry as well as you guys, but it appears brokers aren’t the be all end all of obtaining the best finance ??
Who knows ??
Cheers,
Dazzling
“Go hard or go home”
Fair enough. Brokers are not the be all and end all. However, there are some good brokers out there that can get borrowers better deals… sometimes better than what borrowers would be offerred directly. I guess it works both ways.
Cheers
Stu
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