Can anyone please explain to me why institutions are reluctant to finance purchases in South Hedland in WA. Most I have contacted will only go to 60% and a select few to 70% ??? Whats wrong with the place ???
I don’t think its only south hedland. I’m from WA too, and I did a bit to asking around the other day, and got the impression that they are a bit cagey about many country towns. I didn’t go into particulars about which ones. The banks see properties in them as harder to sell should they foreclose on you (heaven forbid).
Cabo Wabo
Cabo is right it is all about marketability.
In saying that GE cover it for LMI so i would have thought you coul dhave got at least 80% with a few lenders.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hey C W
Thanks for the reply. This particular property is a block of 4 strata units, so I would have thought that a bank foreclosesure on just one or two would be better than just one property.
The best LVR that was found was 75% with alot of effort to get there.
Hi Richard, who is GE and what is LMI?
Regards
Justgjt
GE = Genworth
LMI = Lenders Mortgage InsuranceCheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
justgjt, it is the opinion of some banks that this area (as Richard aluded to) can be hard to market for a quick sale.
However, I am WA based and have just returned from Karratha last week presenting the changing views of some lenders in this region to real estate agents and builders. Obviously with you having some knowledge of the region, would understand the positive outlook going forward of this area.
As such in short, there is now scope to borrow 80% without Mortgage Insurance and in fact as high as 95% with, so the times of old are exactly that. And no, this isnt looking at subprime lenders and paying exorbitant rates/fees, we are looking at banks!
Drop me a line if you’d like any further info, I have many clients from the pilbara and know the area fairly well. You should be able to obtain 80% almost anywhere now without LMI, there have been some recent enhancements.
Hope I can be of some help!
Regards,
RobRob Whyte
Certified Mortgage Consultant MIAAPrincipal & Licensee
The Mortgage Gallery
e [email protected]Winner 2004 National Office of the Year!
Accredited with over 27 lenders nationally. 15 years experience in commercial and residential lending, ask me anything, if I dont know, I’ll find out!
“This particular property is a block of 4 strata units”
Banks tend to see these as more commercial in nature and as such the LVR drops say from 90% to say 70%.
Hellman
There does seem to be a growing confidence in Port Hedland but unfortunately there is a stigma attached to South Hedland that will take some time to erase. A work colleague purchased a unit in SH about 6 years ago and unfortunately the rental yield has been very low. Trouble is they can’t offload it as they owe more on it than it is actually worth. Can’t refinance it and can’t buy another property because of the cash being chewed up servicing the mortgage. Definitely an investing nightmare and a warning to all investors – do your homework!
Flatout
Thanks for the info. I think that now that the over supply (+150) of units that BHP off loaded after shutting their briquette facility have been absorb the property market will improve. BHP has approved $1.5 b + a futher $1.6b later and RIO $1.5b for furhter ore development. This would have to be good for the area.
I do not belive that there is an abundance of available property in Port Hedland itself that would be seen as a bargain, yet with the majority of the population living in South Hedland (approx 10km away)as the prices and rents are cheaper I think this will be the place that will have a groth spurt.
I have just settled on a small block of 1brm units that are +ve CF with room to improve that from some a little TLC.
Does your friend want to sell ?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
