Loan structure

Viewing 6 posts - 1 through 6 (of 6 total)

Ironlady
Participant
@ironlady
Join Date: 2010
Post Count: 27
January 28, 2011 - 6:31 am
Hi Guys
We have 2 properties
      -1 commercial worth $350k – Com. loan $150k = $200k equity
      -1 unit worth $150k – House loan $120k = $30k equity
Both are cross security with NAB
We have other property in sons name. Yes it was all done wrong but we are fixing it
Looking to buy a house or unit by
      -Setting up a co. trust for property protection
      -Take out a personal loan using equity from commercial property for a 20% deposit,closing costs,renovations etc
      -Trust to take out a separate loan for the remaining 80% of purchase price i.e. try to keep it unsecuritized
We need to build knowlege before talking to professional people loans etc
Thanks for any input
Iron Lady

Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 28, 2011 - 6:24 pm
Hi Ironlady
Cant see an issue with what you are doing however raising a 20% deposit on a Commercia property may mean the lnterest rate and set up costs are higher than they would be on a residential loan.

Also NAB legals will want to charge you even under a Choice Package to assess the Trust Deed and Constitution.
Could certainly do better.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ironlady
Participant
@ironlady
Join Date: 2010
Post Count: 27
January 28, 2011 - 7:16 pm
Hi Richard
Thanks for the reply
Sorry about saying I didnt want to talk to pro people yet but was reffering to my bank and accountant not thinking about you guys here
Yes com. rates are higher
We haven't set trust yet
Would be interested to see what others ( besides NAB ) have to offer
If you like we can contact you to find out what you can do and your costs ( charge rate commissions etc )
Thanks Ironlady
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 28, 2011 - 7:37 pm
Hi IL
Sure feel to shoot us an email if you like.
I am actually in the UK on holiday but flying back to Brisbane this weekend so will back on board from Tuesday onwards.
Why not ask NAB to give you a current interest rate and then we have something to compare it against.
By the way we dont charge any fees as like most lenders are remunerated by the lender /s with whom the business is placed.
Cheers
Yours in finance
Richard Taylor | Australia's leading private lender
No1
Member
@no1
Join Date: 2010
Post Count: 22
January 28, 2011 - 10:05 pm
I wouldn’t suggest going to a branch with this but maybe Richard can look in to it for you.
CBA accept commercial as “collateral security” for home loans e.g. You can potentially use the commercial equity and the new residential without having to refi from NAB.
I settled a residential loan through CBA last year on this product. 2nd mortgage on the commercial required a deed of priority however no set up costs and a rate of 7.01% (0.8% discount) on the entire debt.
I don’t know of any other lender with this policy so worth looking at. If I can locate the policy doc I’ll post some more info.
Ironlady
Participant
@ironlady
Join Date: 2010
Post Count: 27
January 29, 2011 - 11:02 pm
Hi
Thanks guys
No1 I think we done something similar with our unit ( 100% + fees ) The rate on the unit is at 7.17 % now Not real sure on commercial loan off the top of my head but is at least 1% more
Forgot to mention our 2 properties are in our name
Will talk with Richard mid week
We want to make our next property separate ( Co trust ) then will be selling of commercial in a few years ( waiting on big infrastructure to happen ) Have not decided on what to do with the unit but will also be affected by infrastructure ( good news )
Regards Ironlady