Sash – it is consistant with your previous income?

Eloi, There might be a couple of points in there:- and I personally think the under supply is a bit overstated. However; there has always been bull markets, there has always been bear markets, always been booms and recessions. Some people make money in shares and property; long bull markets generate false confidence and a flood of mum and dad…[Read more]

I’ll just give you feedback on what to expect from the majors –

There were times banks paid a little more notice to end value however it is an area where a HUGE percentage of loans fall in to default / arrears. If you have problems during contruction e.g. Financial problems, problems with an exteral business, seperation etc. – the end value means…[Read more]

What lender is it?

If it’s a mortgage manager with deferred etc fees I wouldn’t got near it.

Depending on the loan amount I could give you someone in each state at CBA or ANZ that can do the same. Dealing direct with the bank.

Banker

Terry – I have the option of broker channel or referring direct (paid less via direct). I’ve now pretty much given the broker channels the flick.
The guys I use direct get things approved – in some cases approve them when I’m on the phone. It’s simply a different set of rules via broker channels at the moment – different credit teams and far…[Read more]

CBA. As long as it is not a serviced apartment or student accomidation.

Min size 18sq… Have the policy in front of me…

crusty wrote:
 Paul   which bank will lend you  80% on farm land , I have never heard of any bank lending more than 65 % on farm land and trhat is if you have lots of other assets and a good income, except perhaps RFC but being a holiday home I guess that wont fit their criteria.   Wont you also have to pay commercial rates of interest of 9-10%…[Read more]

It’s not that unusual. In my bank days I’ve collected security packets (where titles/ contract etc are held) when increasing a loan or releasing a title – and long behold there is the original transfer and mortgage – woops… Never lodged. Do a title search and the property is still in the vendors name from years earlier…

I wouldn’t read to…[Read more]

Major 4 and most others- as far as I am aware…

We don’t know if the land is income producing or not…

Vic is not too big. Depending on the use of the land, where they bank and if they have have other property you could get 80%.

For example. If they were in the top risk grade, had other property or assets, good income etc banks will bend if land size is the only exception to policy. If the…[Read more]

I’d also like to point out it is filmed like a low budget horror film. Complete with scary music, spooky camera angles and a bit of a conspiracy theory. Wish they had made it a little more factual and informative – cartoon injections and floating dollar signs made me feel like I was watching another Westpac educational movie about…[Read more]

Just for the record i’ve only seen 2 valualtions under purchse price in the last 12 months. I know that people dealing with off the plan apartments come across low vals all the time but for houses it’s pretty rare.

Often you don’t even need to value a clients existing properties (subject to lender) so I’d have to say where I’m sitting the…[Read more]

Paul – what LVR arr you looking 4.

Is it a farm? Or non farming land?

Maybe the buyer didn’t want the property – got his mamager to knock the deal on the head?

Dennis,

I’ve spent most my life in banks. Now out but still advise a little.

Of course you can get a better rate. Especially in business banking where as a banker you include brokerage in the aquasition cost of a deal – and set you margins accordingly. Brokers offer superior choice. Bankers offer supieror price and flexability (with one lender).…[Read more]

Is his accountant Wayne Swan?

hschmid wrote:
I have heard that they have instructed some of their main valuers to discount their thinking by 10% as a subtle way of killing a deal.

Complete load of bollocks.

Reality is that many people have paid over market value for properties in the last year or so.

Going back almost 2 years I had a client who purchased a property and…[Read more]

They are NOT a lender. They are a Mortgage Manager…

Who is the lender?
Same as 1000 other mortgage managers:- wholesale funders!

They might be nice guys but I wouldn’t go there…

Like all the other mortgage managers – clients that have been burnt are too many to be counted…

No we’re not.

Our system is inflated with easy access to money, stimulas, negative savings patterns and reliance on never ending growth (capitalism). Without never ending growth out economy dies. Never ending growth is impossible.

I’m not being negative, I just know that if I’m eating an icecream, it doesn’t matter how small my licks are – at…[Read more]

Jac,

I’ll play devils advocate because you did ask for pros an cons…

The risk is substantially higher when gearing at this level. Jamie M pointed out the benefits of gearing when prices grow. Gearing will enhace the results either direction in the property market.

For example.

If you are geared at 80% and the market dips 10%. You lose 50% of…[Read more]