Hi Akhilla,

You have issues of both asset protection and servicing to consider when making this sort of decision. As was mentioned earlier it will not necessarily greatly alter your borrowing capacity to have only one of you. Having said this, you really need advice specific to your current situation and goals. Sorry I can’t be of more immediate…[Read more]

Hi Jon,

While getting cash out against an unencumbered property is more difficult than lending to fund the purchase there are plenty of lenders who will do this for you, particularly if you apply for finance prior or shortly after settlement. The main issue is maintaining the tax deductibility of the loan. When you access the equity, there will…[Read more]

Dave,

Even if you have a poor credit history, you can still probably borrow given your LVR isn’t too high. You should either supply some further info re your situation on here or contact one of the forum brokers directly for a confidential chat re your situation.

Hi Mac,

The first thing you nee to realise when you are looking at both designers and town planners is that you are not buying a loaf of bread, these are not commodities and the quality of the work will impact whether you get a permit at all, the time it takes, the cost of building and the end sale price. If you choose by price alone, it will…[Read more]

Hi Mac,

The first thing you nee to realise when you are looking at both designers and town planners is that you are not buying a loaf of bread, these are not commodities and the quality of the work will impact whether you get a permit at all, the time it takes, the cost of building and the end sale price. If you choose by price alone, it will…[Read more]

I don’t want to buy into this argument as it is very personal to a lot of people, but I would like to say that it is untrue to claim that the Communist dictatorships mentioned above had no religion. They, and Nazi Germany for that matter, were cults of personality that developed into State religions. Dogma is dogma and is always dangerous, for the…[Read more]

Hi Martin,

A lot depends on what sort of property it is and the actual size of the loan. Being Doctors you can possibly get better terms than people in other professions, but such concessions tend to be easier to get for smaller eg sub $1 mil loan amounts. If you put aside your profession you will be able to get somewhere between 70% and 80% LVR…[Read more]

Thanks for the feedback Richard, where were they selling? My understanding is that they deal solely with large developers, I won’t mention names, but one of them I’ve experienced low vals on most of their deals, I multiple states, but mostly because they spec their units up rather than the resale value not being there. I’ll bring your comments up…[Read more]

Hi Richard,

hanks for he reply, it would be a different business as they are Sydney based. I’m highly confident they are not in any way dodgy, just interested in customer experience its always a bit of a risk being seen to be attached to a third party so its best to do some independent research before reaching any agreement. These guys are…[Read more]

I use Vow Financial as an aggregator. They have a formal mentoring program and there are a lot of other brokers in the group that are prepared to take people on also. I’m mentoring a couple myself at the moment, but I couldn’t take on another one personally unless they had a crazy amount of business to write, its just not worth it unless you…[Read more]

Hi Ajay, You should just treat finance costs as another project cost same as the actual construction, council fees etc. Thisis how lenders look at it also.

Hi Shane,

What you are after is not too difficult as long as you don’t expect bank lending rates and fees. 6 Units with no presales is very difficult with the majors, even where you income is strong they often knock doe the LVR and/or discount the valuation. Please let us know how you go with financing his project.

This is true with regard o the major lenders, to get something outside of this criteria you have to go to the non banks, of which there are relatively few active in this area of lending, and be prepared to pay a lot more money in terms of fees and interest rates.

In one line discounts are not generally a issue for commercial loans, where it is applied the discount is generally 20%. CBA are the most aggressive in applying in one line discounts, but even with them you can have it waived.

Presale requirements are generally quoted as a percentage of debt coverage, so 80% of units will likely be a lot more than 100% of debt. Most lenders want 100% debt coverage, but you can get away with less with some. Meeting a presale requirement does not mean you will definitely get an approval.