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I cant see why not but i would recommend you check with your accountant – us brokers are not qualified to give clients tax advice and often an accountant will come up with structures for loans that will maximise tax benefits.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I have just done one in NSW – it was a bit of a nightmare to be honest but we got it over the line. The floor level of the house had to be above the highest previous flood level and the clients needed to get a survey to do this. The clients were borrowing 80% so perhaps if the LVR was lower they may not have been quite that strict.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Maybe they were talking about someone who is “discharged” bankrupt – in that case you can do a loan however if the LVR is high then the interest rate will be extremely high too.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I would recommend you use a broker because they will be able to advise you on the lender that best fits your needs, they will shop around for you and come back to you with a selection of lenders that will suit your needs. They will also submit the loan to the lender and do all the paperwork required to get the loan approved. This way you dont have to ring around yourself to find another lender from the wide variety we have available.
Some lenders have what they call “maximum exposure” so will have a limit on how much you can borrow so it is important to look at that if you intend having several properties.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I think if you choose your broker carefully you will be really pleased with the experience. They will help you choose from a selection of lenders and you will be amazed at the different ways you can structure a loan. Most brokers have a computer program where you can compare the different lenders using a comparison tool. Very helpful in deciding on a lender for your loan.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]oh my goodness – what a nightmare – i think that is advice that people should get from their accountant not a broker – if we just stick to finance advice that is better for everyone concerned.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I always give my clients a copy of my commission schedule for the various lenders as part of my finance broking agreement that I get the client to sign. – i am sure some brokers may be influenced by commission but generally they are all AROUND the same except for non-conforming loans.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Oh i love that quote Wayne. I put quotes of the week on all my emails – i might add that for this weeks if thats ok.
This weeks is “Dont take life to seriously – it isnt permanent”
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I agree but I often go to training courses and you get brokers that have literally JUST joined the industry and have absolutely no idea what they are doing – it makes me shudder to think what type of strucutres the clients end up with and how much it costs them. At least if they have at least 3 years experience then they would have learned from some of their mistakes and dropped out if they were particularly pathetic.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I have just done a loan for a client who is a resident in Australia but he isnt an Australian Citizen. I am not sure if the ruling varies from state to state but this was a NSW transaction. In this case he EITHER had to be an Australian citizen or a permanent resident (which he was) .We got the First Home Buyers Grant approved so he got the $7000 grant, exemption from stamp duty on the purchase and exemption from stamp duty on the mortgage.
The documents that you have to supply is proof of residency and a copy of your passport so in his case we used his current NZ passport , a copy of his driver licence and evidence of the Australian address – an electriciby bill in his name with the address that he was living at plus an insurance policy with his current residential address.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I agree with the comments above and I would also recommend that you check into the experience of the broker you use and what their fees and charges are.
Look for a broker that doesnt charge a brokerage fee so that it wont cost you any more to go through them than if you went direct to the lender yourself (as we get paid a commission from the lender for putting the deal through them anyway). Also look for one with a MINIMUM of 3 years experience in mortgage finance as anything less than that they may not have the knowledge you need.
Also keep in mind future plans when thinking about which lender you choose.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]His name is Michael J Veitch of Noble Financial Services – ph 96292700 Mobile 0410556876 email [email protected]
Tell Mike I gave you his information. He has just done the finance for a child care centre for me and honestly I would not have been able to get the loan for the client without his expert assistance especially at the rate he negotiated.
Anita
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]There are quite a few but the ones that I use are:-
– First Permanent
– First Mac
– Carrington National.I would recommend use a broker with no brokerage fees to shop around for you though because the rates, fees and charges vary quite a lot with these type of loans.
RAMS have also just issued a 110% loan if you have equity in another property and i DONT THINK that you have to use that property as security but I would need to check on this for you as this product was only released last week so I dont know the full ins and outs of it.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Yes, the Bank give the valuer the copy of the purchase contract in most cases and usually also contact the real estate agent selling the property to check the purchase price.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I am not sure about other states but if the purchaser agrees then it can be done in NSW
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]The problem is that lenders cannot use the relocatable home as security so most lenders will only lend on them if they have a mortgage over the land (which obviously you cannot do in a tourist park). Therefore you would have to borrow using something else as security or a personal loan.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]How did your brother in law go in approaching the brother? If he didnt have any luck there are lenders that will lend up to 106% of an investment property purchase…………….
I would definitley not recommend making a false statement or it may come back to bite you – i would possibly recommend that you state that you are “property investors” – thats what you are – there is nothing wrong with that and its a legitimate business these days. Its how most of us create wealth (wages just pay the bills and lifestyle).
Certain lenders do not require an ABN for property investors.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]RAMS will lend up to 80% on no doc or low doc without LMI up to $500k and Macquarie will go above that. National Mortgage Company is another one. I would recommend using a good broker to help you sort through the maize of lenders. Use on that doesnt charge a brokerage fee so it wont cost you any more than if you went direct to the lenders themselves. Also make sure you use one that has mortgage planning experience.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]I am not an accountant and I think your question needs to be answered by an accountant however this is my understanding:-
If you borrow the funds on your existing 2 bedroom property to build the home you are going to live in (for personal use) then that particular part of the loan will not be tax deductible.
If you sell the 2 bedroom home you wont pay capital gains tax so that might be worth considering.
If you need to borrow funds to complete the subdivision the interest and costs associated will be tax deductible if you sell the subdived land.
Hope that makes sense but once again that is just my understanding and I am not an accountant by any means.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]
