Hi all….just wondering what banks/lenders will use as equity???
I have 45 cubic metres of feature grade, large jarrah slabs and burls, worth between $4,000 – $8,000 per cubic metre, making it worth between $185,000 – $360,000…..depending who you talk 2!
Timber is a unique asset, as it constantly appreciates, but you can also value add…multiplying the return significantly.
I also own a block worth $280,000, and have share portfolio worth $100,000, which provides my income(home trader).
Ive also got about $200,000 equity in an IP I jointly own with my Brother and Dad.
Id like to buy a house in Bunbury, WA(recognised by Property Investor magazine as top 5 investment cities for 2007), for about $270,000 on duplex block, as my PPOR, with my plan being to renovate and subdivide within 6 months, getting a very cheap/free rear block of land….hopefully!!!!
Sorry 4 the long post!
Your opinions greatly appreciated [hair2]Jim
Where is it exactly? What size block, how far from beach? Linda
Bunbury is a port city, 200 km south of Perth in WA. There is
HEAPS of new developments and investment going on in the area, and capital growth is great(30%+in06). The suberb I am interested in is Carey Park. It is 2km from both Bunbury CBD, and the beach.
The zoning is R30(av lot size 333m2), and most of the blocks are 700m2+!
You can still get a house there for $270, 000, on a duplex block…but it WILL need work, but thats about the same price as the cheapest renovated house in Carey Park! A 333m2 rear duplex lot is worth about $120,000…so it adds up! [strum]Jim
With a traditional lender they will certainly take the share portfolio and the IP but no chance with the other.
That is more a private loan asset.
What you have certainly would be enough to proceed with your PPOR.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
It sounds like a good move to me. Linda
Thanks for the responses!
So I know I have the equity…but proving my income is another thing!
I have been a day trader(shares) for 18 months now, and basically just take income when I need it. I find that works the best tax/savings wise…but not so good when getting a loan!
I have a 10% deposit, and Im willing to sign a stat dec, OR WHATEVER, to get the loan!
Must be someone out there who can help???
Cheers…[worried]Jim
Jim
2 choices
1) Take a 80% Lodoc / lodoc loan secured against the property you are wishing to purchase and then take a 10% margin loan against your share portfolio.
Reason this will be cheaper.
2) Take a lodoc 90% loan subject to ABN & GST registration.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
The first option sounds good, but it would have to be NO-DOC, as I have no ABN, GST rego or proof of income!
Margin loan against portfolio no problem! (more if needed?)
Little or no early exit fees are also pretty important for me.
U think theres anything u can do???Jim
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