Hi guys,
This is my first investment property, just back from suncorp bank, they could not lend the full 190,000 house construction loan required to build on my subdivided rear block due to servicebility issue. the thing is once the property is built and rented out, my monthly cashflow will be much better than what I am now. thinking about using broker, but not sure which one is the best for servicebilities. Any recommendation?
current Loan/equity:
• Residential property currently valued by bank: $450,000.
• Subdivided rear block valued by bank $275,000.
• Current bank Loan $350,000
My Plan:
• To build 4X2 with theater room on the rear block for renting, estimated weekly rental $600 per week once complete. Once build complete, house valuated ~$560,000 (based on the current 4by2 sale price in the same subburb)
• Building cost quote by builder $190,000.
Income and saving:
• Monthly pretax income ~$5000.
• No car loan as car provided by work.
• Two credit cards with credit limit: 5000 and 7000. (Credit card could be closed if necessary)
$20000 cash saving.
$30000 share
any advise is appreciated.. thanks
Daz
by the way, i am in perth..
Hi Da
I can see why Suncorp Bank didn't do and certainly believe it can be done but would need a wee bit more information before i said Yes for sure.
Since the inception of NCCP I see many a deal declined each day and sometime the reasoning ehindb the credit decision would amaze you but i guess it is there money and not yours to be lent.
Doesn't worry me if you are in outer Mongolia as most loans are lodged electronically these days. In fact been a week or two since i have had a client from outer Mongolia so would welcome the change.
No Seriously distance is not a problem as email and phone works well.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Daz,
Suncorp is one of the harshest when it comes to servicing – however a lender like Westpac is quite good especially when using rental income and negative gearing benefits in the Servicing calculation. Based on the information you have provided above – there is no reason why you will not be able borrow the amount requested with at least several lenders.
Is the proposed $600 per week rental appraisal from a Real Estate Agent? Also do you have a building contract from the builder (I am assuming that they are a licenced builder)?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Shahin,
yes, $600/week is verbal appraisal from one agent. I have signed the preliminary contract with blueprint-a licensed builder., not the formal build contract yet. building plan has been lodged to council and wait to be approved.
Thanks
Daz
Ok the bank with need a signed rental letter together with the agent/real estate letterhead. The bank and the valuer will also need to see the DA before formally approving anything. Therefore, you need to get a credit assessed approval subject the to valuation and of course the DA/CC approval. Also you are fine with Blueprint as a licenced builder.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
As per the above comments sounds like there'd be multiple options for you. To be honest surprised Suncorp couldn't make it work as is, especially if your company car was taken into account (although getting branch staff who don't know what their doing which is 95% of them it doesn't surprise me that much).
Hi Daz
Do yourself a favour and contact Richard Taylor above – you'll be in good hands.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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