Hey all
I need to find a lender that is willing to tell me what i will need to save by Feb 2008 to buy my first property. I have a plan in place for my first property and need a lender to tell me how much money i will need and how much i can borrow on my salary. I am looking to buy properties to renovate and keep short term. I am not looking for buy and hold. I wanted to setup a company name to buy and sell under which eventually also i want to start developing property with my parents under.
Any suggestions who to speak to would be great.
Adam
Adam W
Hi Adam,
I would suggest you talk to the wonderful brokers on this forum who will be able to work out how much you are able to borrow, next you will need to talk to an accountant on the correct structure to suit the way that you will invest in the future. I have recently done this and it cost $1,200.00.
I then purchased property under this new structure and the solicitor rang me up to say the wording on the document was not correct and needed the accountant to reword. So a switched on solicitor is also a must!
Good luck
Jenny1
Hi Adam
Wow nothing like planning ahead and that is good.
If you intend to have your parents as a Director of the new Pty Ltd Company then their incomes will also be important as well as their current statement of position with regards to the assets and liabilities.
If you are doing it on your own then certainly your income will be important. To avoid lenders mortgage insurance you will require 20% deposit for each property that you buy unless you utilise some of your parents equity.
If you are thinking of doing it regularly most Banks will want to refer you upto their Commercial Development departments where the criteria is a lot stricter.
A good MB should be able to work with you in such a venture.
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
Thank you for your help.
This is great feedback! I will keep everyone in the loop on how i go.
Thanks
Adam W
Most lenders just go on computers now, it won’t matter how much you save, they only care about income. Sure you if you save 20% of the purchase price, you don’t have to pay LMI (about 4% of the purchase price), but saving more money won’t make them lend you more money. They will simply lend take your gross income, subtract debts and times that by 35% or 40% and make that a payment for 30 years and give you a total you can loan.
If your income is $40,000 and you saved $100,000, they won’t care at all, they will still only lend you $150,000.
Dacium
That is true to a certain extent, but not necessarily always the case. Some lenders have a higher servicing requirement for higher LVR loans, so the more the deposit the easier it will be to service.
Also the higher the deposit the less they look at blemishes like small phone defaults etc.
Terryw
Discover Home Loans
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Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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