Hi all,
This is my first post of many.
I have been investing in property for the past 6 years and I have come from the old school where capital gains rule.I have been fortunate in the preceding years in investing substantially in the Northern Beaches of Sydney and established Brisbane suburbs and cannot complain.
However, my strategy is turning to cashflow and the Beaches are far from this.
Before I begin the oddessy of +CF properties, I would like to hear any experiences people have had with Banks, Mortgage Brokers, Vendors etc in obtaining finance.
Is there any way around where lenders will accept that a property is +CF. and fully allow the loan against this. (Providing the usual 70 – 80% rule is in place for haircut on rent.
Thanks and regards
Mark
Mark
your average lender, does not like to lend based on rental income alone. They would say you are too rental reliant-ie what happens if your tenant moves out! (I know, the answer is “I’ll just get a new one”!).
Ways around this are using low doc loans or no doc asset lend type loans.
There are lenders out there that do not take serviceability into account. So if you have the deposits, then you can usually get the loan. rates are 8% + tho.
BTW, why do you want to change strategies now. You appear to be doing well as it is.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Rob
I meant private lenders who do not look at serviceability or do not even do a craa check. Standard low docs – ANZ and Macquarie are certainly available at the rates you mentioned and should be used, where possible, before trying private lenders.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
>>I rarely use the No Doc or Private Lenders as I ball-bust the regular lenders until they do what I want.<<
Come on now Rob, who do you think we are ? Seven year olds who still live in make belief land ?
Pisces
>> I rarely use the No Doc or Private Lenders as I ball-bust the regular lenders until they do what I want.<<
That is your statement Rob, not mine.
You are the one who has to live with it.The above can only be interpreted as stating that you rarely use a No Doc loan or private money because there is no need to do so as you [habitually] squeeze the balls of the lenders until they see it your suggested way.
You are now asking me what I mean ? I don’t believe one iota of the above, that is what.
You ask : >>Are you implying a lender will not change their mind?<<
A nice attempt trying to take the spotllight off your absurd claim.
Of course lenders can be persuaded to see it another way – sometimes that is, in exceptional cases -.
Not however as a matter of course which you clearly appear to state.
The only other person in the world who I could possibly imagine making a statement as outrageous as your statement about squeezing the lenders’ balls until they give in to your demand would be
Walter Mitty.And as far as making an unsubstantiated comment is concerned I would have thought that it was you who made the absurd claim.
>>Notice the word ‘RARELY’ and how it was used before making an unsubstantiated comment.<<
Exactly. You used the word ‘rarely’ before making an unsubstantiated comment.
Nice of you to draw attention to that. What poetic justice.
Pisces
Bennett- have you had your questions answered? Please ask further specifics if you wish and I hope you’re not distracted too much by the bickering in this post.
kay henry
Agreed.
I have received some useful insights. HSBC should be able to assist as I remember I discussed with them a syndication loan on an appartment block about 4 years ago and they seemed to be flexible.
I will have to talk with them.
Thanks.
Mark
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