All Topics / Finance / Taxi PLate finance

Viewing 14 posts - 1 through 14 (of 14 total)
  • Profile photo of BMW330CiBMW330Ci
    Participant
    @bmw330ci
    Join Date: 2006
    Post Count: 37

    Hi All,

    I been contemplating of purcashing taxi number plates, but will require to get a loan for them.
    I dont beleive they are treated like residential security, so the interest rates and the amount the bank will lend me against a taxi plate will be different right?

    Thanks in advance,

    Profile photo of MortgagemanMortgageman
    Participant
    @mortgageman
    Join Date: 2004
    Post Count: 164

    Hi BMW330Ci,

    Yes a taxi licence is commercial security and will be subject to much different rates and conditions than home loans. For a start you would probably be looking at a maximum LVR of  around 60% and the rates will be quite a bit higher than for residential property.

    Kind Regards,

    Cameron Perry
    Director
    Perry Financial Strategies
    Level 13, 30 Collins St
    Melbourne VIC 3000
    Ph (03) 9662 1999
    Fax (03) 9662 2044

    Profile photo of BMW330CiBMW330Ci
    Participant
    @bmw330ci
    Join Date: 2006
    Post Count: 37

    Thanks Cameron,

    When you say higher interest rates, how much higher than residential? would they be aroud the 8.5% mark?
    Also, what if wanted low doc? If i keep it below the 60% LVR threshold as you mentioned, would they consider low doc for these types of purchases?
    To give you an idea, i seen a few taxi plates around the $330,000 – $350,000 mark and have about $180,000 to put towards purchasing one.

    Thanks again in advance!

    Profile photo of MortgagemanMortgageman
    Participant
    @mortgageman
    Join Date: 2004
    Post Count: 164

    Hi BMW330Ci,

    Hard to say what the rates would be as they are priced individually, but 8.5% would probably be at the lower end. It may be possible to do 65% or even 70% LVR under some circumstances so the amount you have to put into the deal is no problem at all providing you get a decent price. The servicing can come from the future income from the taxi licence, so the low doc/ full doc applications don't really apply although you would need to provide full financials.  One thing to watch out for with taxi financing is that the LVR will be calculated on the prevailing market value at the time rather than the purchase price. I hope this helps.

    Kind Regards,

    Cameron Perry
    Director
    Perry Financial Strategies
    Level 13, 30 Collins St
    Melbourne VIC 3000
    Ph (03) 9662 1999
    Fax (03) 9662 2044

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    BMW330Ci wrote:
    Thanks Cameron,

    When you say higher interest rates, how much higher than residential? would they be aroud the 8.5% mark?
    Also, what if wanted low doc? If i keep it below the 60% LVR threshold as you mentioned, would they consider low doc for these types of purchases?
    To give you an idea, i seen a few taxi plates around the $330,000 – $350,000 mark and have about $180,000 to put towards purchasing one.

    Thanks again in advance!

    BMW,

    Just out of interest what sort of return could you expect for an outlay of $330,000?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of BMW330CiBMW330Ci
    Participant
    @bmw330ci
    Join Date: 2006
    Post Count: 37

    Thanks for the input again Cameron.

    Regarding the low-doc, if i provide full financials – i am pretty sure it may not service as my taxable income is very low (tyical self employed), but i have mortgages to the hilt.
    So that is why i was wondering, if i just delcared an 'income' for myself + the income generated from the taxi plate, would this be acceptable?

    Terry: I am expecting $450 per week return.

    thanks again.

    Profile photo of MortgagemanMortgageman
    Participant
    @mortgageman
    Join Date: 2004
    Post Count: 164

    Hi BMW330Ci,

    The future income from the taxi plate can be used to service the debt so it doesn't necessarily matter that you can't service the loan right now, although you would have to demonstrate a capacity to service the existing debt as well.  It is basically the same as if you are buying a business. There is no way you would be able to do a taxi licence loan without showing full financials unfortunately.

    Kind Regards,

    Cameron Perry
    Director
    Perry Financial Strategies
    Level 13, 30 Collins St
    Melbourne VIC 3000
    Ph (03) 9662 1999
    Fax (03) 9662 2044

    Profile photo of relphyrelphy
    Member
    @relphy
    Join Date: 2007
    Post Count: 2

    Hello BMW330CI,

    There are approximately 7 lenders that I am aware of that lend on taxi plates. Of these, 2 will do low doc loans on taxi plates. The highest LVR is 70% of the industry market value. I hope this assists.

    Regards,

    Robert Relph
    Diversified Financial Soluitions
    205/1 Princess Street,
    Kew Vic 3101
    Ph: 1300 001 003
    Mobile: 0422 019 282

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    I am aware of one that goes upto 75% but interest rates are slightly higher.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    Do lenders still only go upto 60-70% LVR for Taxi Plates?

    If this is still the case what sort of repayments and over what time period would be expected with a 40% deposit?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Brizza

    Yes 60-65% max at the moment and usually 15 year max term.
     
    Rates are not cheap compared to resi securities but all relative.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    Thanks for your response. What are the current interest rates for such a security? How much would the repayments be over 15 years?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Treated as a Com deal so going to vary but between 8-9% variable.

    Each deal slightly different so no right or wrong figure.

    Cant give you a repayment as i dont know how much the loan is but based on a 15 years Term at say 8.5% payments = $9.85 / 000.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    HI BMW..

    Firstly nice post!!!..

    What state are you looking in? I know in Melbourne the whole TAXI industry is going through a big reform.
    If there any changes do you think it might change the value of your investment?

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

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