CBA only do owner occ at 95%. investment is 90%. unless you are premium or private banking.

There are a few things people don’t understand about a good banking relationship.

The reality is all bank staff at westpac, ANZ, CBA and NAB are getting the importance of being a customers main financial institution drilled in to them. As financial markets are tightening the banks are looking to gain more revenue from each client ( without the…[Read more]

You cant just pick a valuer or the bank might non accept the valuation. ANZ use to let brokers order valuations before submitting a deal. I don’t know if they still do.

CBA allow you to order your own (if you pay for it) via their website – you don’t even need to be a customer.

With CBA it automatically selects a valuer after you’ve orderred…[Read more]

stephen@longwater wrote:
My experience is that the lender will fund on the basis for the lesser of the 2; contract or val. That has been in policy for sometime, but havent come across any scemarios of that sort for a while so not clear where policy is today.

Generally speaking this is true but if you have a good relationship with your bank and…[Read more]

Unfortunatly that is a risk at 95% lend. You could get it valued before auction however this will be your max e.g. The bank will take the lower of purchase price or Val: – if you buy higher at auction you might only get 95% of the valuation already done.

Depending on the lender you might be able to order and pay for your own valuation.

Which…[Read more]

My post won’t be popular. I’ve read most his books and seen him speak. Banjo is correct he made no money from his own teachings: – his money has been made from writing books and public speaking :- ) He has lost a lot of credibility in recent years due to 'rich dad' being based on fictional characters and his involvement in network 21 (related…[Read more]

Hans, Is brokersite an actual franchise?

Major 4 or one of the banks they own (St George / Bankwest). I can’t think of a good reason to use a non bank unless there was a problem getting it approved with a bank. Stay away from mortgage managers and anyone with high DEF (deferred establishment fees).

In the current market the banks are usually more flexible than other lenders and their…[Read more]

PC_Melbourne wrote:
One of my colleagues has Student accommodation in Melbourne.
He paid 138k for it 2-3 years ago.
Today he can pick-up the same sized unit in the same building for $130K – 135K
It got cashflow positive fairly quick though, and he has no intention of selling it as yet, but its certainly not growing in value real quick.

He’s a…[Read more]

The other post was 5th July. I can’t paste a link from my iPhone

You still want your investment to be worth what you pay for it.
Most student apartments (new) are not worth what you pay for them.

Refer comments in post titled student accomodation the finance section; re buying them off unwise investors 2-3 years later – for less that the first investors initially purchase price…

The only people that really…[Read more]

$1000 x 20% = $200 per year
divide by 12 = $16.66 per month approx
that is ignoring months have 30 days or 31 days etc – should be close enough.

Keep in mind some banks work off business days e.g. If the last day of the month is a saturday you might pay interest for 33 days ( charged on the Monday). If this happens the next month will be short…[Read more]

Richard / Otto,

I’m certainly not saying you can only get a 95% plus LMI with your existing lender however if anyone has a Cba credit card and has had it for 6 months – they qualify for 95% and the mortgage insurer doesn’t even look at the deal. A bit of forward planning would say if you’re thinking of buying – get a 1k credit card from your…[Read more]

You would need to have a pretty big loan to make it worth the extra fees and costs. Not to mentioned exchange risk and margin calls.

If you’re too small for the banks profiles listed above just take an aus$ loan from a major bank and put enough in an offset account to maintain repayments for a while. When the exchange rate is to your liking; do…[Read more]

Who do you bank with?

Banks prefer existing clients. If you have a credit card or existing loan with CBA and have had it more than 6 months – youcan have 95% plus LMI. Policy is no different than a 90% lend.

Anz is a min loan of 1M and income 250k. Purpose is when security is in aus and you are getting the loan via ANZ in another country.

Keep in mind these loans have magin calls etc as security is in one currency and loan in another.

I’d question the reasoning behind it. If you are just buying a property in aust and getting the money from an aust…[Read more]

Sorry drop 8k off – not 10k…

Sounds pretty good.

Without LMI you can lend up to 80% against each property – this amount needs to include existing debts.

Your calcs are almost correct. The banks won’t lend against costs therefore it is 80% of the 270k purchase as opposed to 80% of purchase and costs (280k). Drop 10k off the 224k.

So just out of curiosity – and to compare apples with pears.

Are you assuming property with leverage and shares without leverage?

It all sounds nice in theory but if they only had 1.5% deposit one would think that they might not have too much cash (might be looking for a 95% lend with FHOG etc).

Contract law / any law means diddly squat if they have no money. Even if a court orders them to pay 10% – if they don’t have it they can’t give it…

Did you use an agent?
If they…[Read more]