I’m working on a deal at present which is a farm on the edge of town with four titles including two homes.
My broker has refered me to the NAB and I have a letter of approval for 880k in front of me.
I was thinking of doing say 600k at 3yr fixed and have the balance variable.
Now I have been quoted fixed rates of 7.5-7.8% and variable of 7.3-7.4%. My question is how competitive is this? I am offering some residential security as well.
Welcome any comments and have a great Christmas everyone.
Shawn
We need the breakdown of security types, what their values are, what the zonings are, property sizes, use of properties, etc…
Being a mortgage broker is not that easy.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltdhi shawn,
does the math work for you?
are you making money on the purchase?
what sort of return on your purchase will you achieve?
cheers
brahms
Mortgage Broker
[email protected]There was a recent article in one of the mortgage magazines about the a certain bank calling in loans. I’ve seen it happen to two people as well, one a rural property.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
And a borrower would have to be silly to sign such a clause!!!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdThanks for the interest.
The deal I am working on is zoned rural and in four titles, as I said. My strategy after settlement, is to work towards selling one of the titles after 12 months and to run the farm it’s self in a professional way.
It is a working dairy farm in a rundown state with a vendor under pressure left right and centre. 300 acres all up and I’m looking at 2650/acre
The cash flow that I expect will show a gross margin of 26%
I have an unencumbered residential valued at 350k that NAB will take as security.
Total borrowings would be 880k. No valuation of the new purchase is required.
Rural property is not very glamorous I know but I have done very nicely over the years thank you very much.
Is that enough info for you to work out if my finance cost is competitive?
After Ive worked through all the problems and have everything up to speed then I want to duplicate again.
Shawn
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