Forum Replies Created
Dear Harry,
Please look at the article below. Just search for portability of LMI in search engine.
http://spionline.com.au/home/3453-portability-could-push-lmi-premiums-up-genworth
Thanks for the support Mark.
Dear Alex,
Just trying to know what was your final option, 15% or 20%.
Dear Harry
The proof is in pudding. look at the link below.
http://www.qbelmi.com/pg-what-is-LMI.seo#Is-LMI-refundable
I absolutely agree with Richard Taylor and jmsrachel in previous comments that the broker should know and it may cost thousands otherwise to clients.
Dear PCF Investor,
Did you restructure your loan? What method you used and what advantages you found in that method.
Dear HarryMarcus,
Based on the LMI is with which insurance, you can refinance the loan with another lender within one year of LMI and they do not get charged new LMI.
Please let us know what finally happened.
Dear kevsgn,
In Australia a mortgage broker can not put application to bank unless then have done personal checks. Known as KYC.
Similar requirements will be there in US. Hence you could not avoid going to US that is my understanding, but you need to verify with mortgage brokers with US.
Dear Ynchai,
Early payment is required to be done but in Offset account. Hence to pay or not to pay is not the question but how to pay is question.
Dear Wilko1,
You can not use the property fully paid for borrowing for deposit or as collateral, but rental income can be considered for serviceability for next property.
That is why you need to take loan in SMSF with offset account with interest only, this allows you to pay the loan in offset and keep loan out standing.
Dear Getafix,
I believe you are now ready for the loan.
Some banks allow private valuers to do valuation.
The valuation is usually lower to purchase price or market value. Or market value if purchased more then 12 months before.
If you plan to construct. Get the 80% loan on as per your purchase price now.
Live for 6 Months by then you will have all plans and fixed price contract ready.
Go to bank for construction loan then.
The loan will be based on lower of (land value+ cost of construction) and expected value of property after construction based on property near by of similar nature.
The loan will be only P & I during construction
You need to show where you will live and able to pay rent and what is your income during construction to remain serviceable.
I hope I was able to help.
Dear Bbasdg,
I believe you may have already taken your next step.
Just out of curiosity.
You have two property valued at (400+450) =850K total
Total loan (330+300)=660K
Total deposit needed (20% of total properties valued)=170K
The money available of next property= (850-660-170)=20K you could buy land up to 100K but will be left with no money to construction.
I believe you may have sold the second property or taken loan with LMI. Did I miss something.
Please inform what you ended up doing.
Dear Saintd,
It is nice to see that you are ready to take next step in your life. First of best of luck.
You can consider an option to get a rental property which is about 20% cheaper rent as compared to market. These are known as NRAS properties. If you contact good real estate in area they may be able to help you.
Other option to have share accommodation this will provide you two things one potentially half the rent and room partner to help and support you in your medical needs.Also to have half the responsibility of living indecently such as cooking, cleaning etc.
Other option is you can contact disability support advocate they will help you in finding appropriate room sharing partner as well as renting property.
It will be good idea to take a step a time i.e. start living independently first then take responsibility of owning a place. If you are able to manage yourself in rental premised you could go on to live independently after six months.
Good luck.
Dear Marsmac,
Adelaide Bendigo Bank's mortgage manager will require the land is in zone 2 or 3.
If it is middle size town then it might work out as residential.
Dear Renren,
It is all about knowledge and informed decision. No business is without risk but if risks are known and benefits out weight them , then business is worth.
Ignorance in business about risk is no no.
Dear Renren,
Let me explain you a property is negatively geared and negative cash flow.
Property value at $120,000
Loan on the property $95,000
Annual rental return $6240
Interest on loan=$4920
Total all other expenses excluding depreciation = $4070
Total cash flow loss=$6240-$4920-$4070=$2750
Depreciation=$4500
Taxable loss=$7250
Tax percentage 35%
Tax Refund=$2538
Cash return after tax (-)$212
The last thing you want is negative cash flow after tax.
Dear ferdinandch
Please read the post below I have given numeric example.
https://www.propertyinvesting.com/forums/help-needed/4349847
Dear Ferdinandch,
I was looking for your original question.
Is it a good time for buying?
Just your personal opinion.
I am looking for a $450K – $550K property with two bedrooms.
Newer unit will be better.
Area that I understand more is North West and Lower North Shore area.
However I'm open to good advice.
You might have seen no one choose to answer these. as this question need to be asked in some other forum as it is not appropriate to be answered by Mortgage brokers.
I appreciate you were able to find the property you want to buy.
I can suggest you to look at the property in terms of the potential negative gearing with negative cash flow it will be trap and not a good buy.
Hi Corrad,
You need to know in and out of each banks policy to get maximum of borrowing capacity based on your specific requirement and financial situation.
This is exactly the conditions where mortgage brokers become helpful.
Dear DerekLangan,
I will strongly suggest you go to broker whom you can meet in person.
Hi Jen,
I have sympathy with you.
You need to check the brokers's website and find their service philosophy. What they have been doing and may be some other sites such as face book, linked in etc may help.
Definitely do get some reference from the brokers him/her to start with.
