Forum Replies Created
In regards to your first home owners grant it is only applicable for your Owner Occupied properties. The best thing to do is contact the State Revenue Office in your state who administer these grants for further advice on how it works.
You can also with some lenders place the money on redraw and make the payments that are comfortable for you while accessing some of your redraw to assist in meeting your monthly payment. Therefore, reducing your redraw, but still making considerable savings on interest costs.
This may affect your ability to refinance at a later date though.
The only way to reduce your repayment is by changing to I/O or to use the funds to have a Principal Reduction, therefore reducing your loan amount.
Another option is if the funds are placed on redraw you are still required to make the payment, however the interest you are incurring is reduced by the amount in redraw and you can end up making savings in your interest costs.
I would say as a lender that she is not helping her situation at all should there be legal complications and that lender finds out she had a pre-existing car loan. It would not worth the legal bill that could be imposed.
She can obtain serviceability calculators from any lender if she calls up and asks for one. Some lenders may require athem to be a member of there broker network, but this will help with her to ensure she has serviceability.
A very risky situation that sounds like your friend does not want to liste n to what is being said. I hope this helps.
I work for a lender and Richard is correct on this one. Some lenders may only take established house or construction loans as there is a lot of land purchases that have occurred on the island over the last two – three years.
If you are wanting a land loan I would say you would need to look around a bit more to obtain the finance at 75%-80%.
Hi Pman,
Marc is right with this one. The developers who know what they are doing can end up making a healthy return from the sale of there property and there are developers who may be getting rid of the property due to lack of funds who may have no idea and you get a pretty nice return once the property has been completed. However, the only way to determine that is by the valuation done on the property.
Also, there are limitied lenders who will take on the a partially completed construction property, so do your reseach. Make sure if you do proceed that your broker advises the lender of what the property is as you dont want to get so far and then they find out and say well we cant do this sort of property.
To be honest I work for a lender who deals with this sort of property regularly depending if owner builder or fixed price. So, this is why I can offer this advice.
Cheers
Andrew
Hi Guys,
We would be able to look at a Lite Doc facility without an ABN for 2 years. As long as the borrower shows on the application they have had experience in the same field. This is not a major issue to La Trobe who also deal with 1 day ABN’s in some cases if the remainder of the deal is strong.
Richard,
Unsure in regards to your issue with the subdivision as we will most likely look at advancing on the subdivision value if there is a current DA (development application) in place. It there is no DA from the council then unfortunately we can only base the loan on the value of the property as it stands. We deal with a lot of DA loans on a regular basis.
I think you guys should benefit from a visit by La Trobe BRMs who can assist with any deals. I would be more then happy to let you know of anything that La Trobe could offer in relation to any scenarios that may even surprise you. Why not see what we can offer.
We assist with large acreage, serviced apartments, rural locations and many other means.
If anyone has a query regarding what La Trobe can offer I would be more then happy to oblige.
Andrew
Hi Sarah,
A good website to look at is: http://www.homepriceguide.com.au.
Then go to suburp snapshot and enter the postcode and it provides a demographic guide to the area.
Regards
Andrew
Well I work for La Trobe Financial Services. I look forward to all the negative information that you may have. I am not trying to request people use the company, but am more happy to assist with any queries they may have and to assist them in making a correct decision in regards to there investments.
I am also extremely interested in the information you, Terry and other brokers provide that may assist me in obtaining finance for further property investments.
Hi Sarah,
I remember an investo talking about investing in Queenstown in the API magazine. There is no real estate agents in the area so it is impossible to have a property manager and you are left to fend for yourself. Trying to get interest in a very isolated rural Tasmanian town is harder then expected. Capital growth in the area is relatively poor as well due to the lack of investor interest. As far as I remember this property was on sold 3 mths after settlement due to situation.
You must also look at what a lender would be willing to do in the area. Maybe call some lenders to ascertain an LVR that is available because the poorer the location the lesser it will be.
But, Sarah in relation to Tasmania it is improving and may be a future hot spot as it was a couple of years ago. As they say you need to go with your instincts.
Andrew [thumbsupanim]
Hi Angel_Babe
I work for a lender who would definately look at the properties based on the population size and the actual deal itself and may be able to obtain a higher LVR. If you wish me to follow up on this please feel free to PM me and I will be happy to see what we could offer.
Regards
Andrew
Hi Glenn,
In regards to you the 80% it is definately viable if the property is located in prime location being metro areas. The lender would most likely look at the deal itself and if it is good they will have no problem with 80% with rates from mid 7.6% to mid 8.5%. Anything less is not really going to happen as the loan is a low doc facility.
No doc I am unsure, but have had responses from 65-75% LVR at the same rates as above myself.
Regards
Andrew
Senior Lending OfficerMost lenders should have it in the Letter of Offer documentation.
With serviced apartments there is an added risk to the lender as they are not in such high demand. Some factors you should consider would be the size.
The property would need to have a living area exceeding 50m2 to get a lend in most cases with the lender looking at 40m2 – 50m2 on merit.
On 50m2 and over you would be looking at around 60-65% against the valuation of the property or contract price whichever is the lessor.
A lender on a serviced or managed apartment would no way do an 80% lend unless maybe under a private or second mortgage arrangement.
Andrew
Hi Michelle,
There would be a lot of amending required in order to so and you will most likely have to revisit your accountant to arrange. It may take time as new trust deeds will need to be executed etc.
See your accountant to get further information.
Andrew
Hi Hiphop
With your scenario it is a lot harder to obtain mortage insurance on high density locations less than 50m in size through private lenders. I know when searching I have found between 50 – 65% LVR is the maximum for high density. Also, you must be careful if the property is a serviced apartment as you will fork out the extra and the lender will only advance on the value of the property and not the furniture.
Hi Grant,
If you are looking at development finance then their is definately lenders that I know of that on a duplex construction depending on owner builder or fixed price and good location will look at at standard variable rates.
I have done duplex construction on owner builder (up to 75%) and fixed price (up to 80% depending on the location, loan amount, size of dwellings at 7.75% low-doc. With a triplex construction the LVR would be a bit lower and the rate a bit higher, but its definately achievable if the equity to fund the investment is available. You will probably need to discuss with the lender in regards to the profit of previous projects assisting in servicability.
If your interested I can provide a contact if you like.
Hi Minidaz,
i think I understand what you are saying.
You wish to access some equity from your PPOR in order to pay the deposit on your investment property and then take out an 80% lend to purchase the investment property.
I am confused as to why you need 3 loans when you only need 2. if you have equity in the PPOR for $90K on a loan of $190K for a property worth $340K then just increase the loan as it will cut down on costs.Therefore paying a repayment on $280K for the PPOR and the 80% of the investment loan.
Your concern is that your repayments for the PPOR will increase. Therefore, meaning that you will be required to outlay additional funds if the investment properties income is not enough to cover the two.
I have thought about this situation too and what I have found is if I make my regular payment on my PPOR then any extra funds remain are put onto the investment property and eventually meaning I will be able to purchase another property with the equity obtained from the investment property and then I have a property that is getting equity as the tenant is paying the mortgage and the new tenant is paying the other mortgage and I am providing additional funds. Another way is any extra funds then you save them to assist when you have enough equity in the investment property.
Alistair is right. How it is determined if you exceed 35% DSR (Debt Servicability Ratio) is through a calculator that determines if that borrower can service the amount they are after, which can easily rise to a 50% DSR.
Hi Carlin,
I actually work for a lender who I will keep nameless.I have dealt with this situation on many occasions.
What you can do is if you are only wanting to refinance the investment properties is to seek the services of a lender either through a broker or the lender directly and they will look through your scenario (there is no charge!) and the lender will be able to provide you with an indicative approval that they will be able to do the loan for you and disclose the rate etc. Then if you are happy with that the lender can arrange a valuation for the investment properties and at the same time you can advise the existing lender that you wish to partially discharge the 2 investment properties from the loan and keep the existing PPOR.
Once that is complete it is just obtaining payout figures for the properties and determining the equity you will have available. Once all that is arranged there should be no problems.
Also with cross-securitised you are getting confused as it means that the properties have individual loans and if you default on one of the loans you actually default on all three. Also, known as cross-collateralised. [fez]
