The 80% rule is to the value of the property not the equity

e.g. House worth 500k x 80% = 400k

if your loan was 370k you would have access to 30k.

You could look at. 90% LVR e.g. 450k less existing debt (net approx 25k).

If the second option works you may only pay a small amount of mortgage insurance noting most of the debt is already…[Read more]

Although brokers are good I’d speak to a couple of bank franchises as well.

Note: some ANZ mobile bankers are actually ANZ franchisees. CBA mortgage Innovators are self employed CBA bankers.

If you read any industry mags (broker news / the advisor etc) there are a lot of brokers complaining that broker deals are not getting the same treatment as…[Read more]

Banks generally work off a net surplus figure.

E.g. “Wages, 80% of gross rental, other income” less ” tax, living allowance, existing and new debts”…

If you have $1 surplus your are pretty much OK.

80% of rental income is based on the gross weekly or monthly rent. The 20% allows for agents fees, repairs, rates and maintenance etc. Repayments…[Read more]

With all banks your are required to disclose debts you have in your name or have guaranteed. Even if directors guarantee.

If you present a property well and spend money on marketing you can get a better price when you sell. If not a forced sale you also have time to wait for a good offer. Mortgage purpose valuations generally work on the bases of vacant possession – e.g. Empty house without too much emphasis on new paint, good presentation etc.

Banks also require a…[Read more]

So Andy, are you saying you buy student apartments cheap on the secondary market rather than new?

It kinda confirms why not to buy them from a seminar / one stop shop property investors club type outfit. I’ve seen them sell up to 40% under original purchase price. I guess from your point of view they could be a good investment.

Good buy for the…[Read more]

If the market turns to custard these sort of properties are the hardest to sell. The secondary market is weak as you can always find a new one ( why buy something a few years old – miss the depreciation etc). This makes it hard to recover your money if you sell.

The value of the property / and potential rent is reliant on international students…[Read more]

A: variable. It depends if you are going to banks, second teir lenders or private investors. If the deal can be done on a retail basis; not much prep is required for the bank, commercial basis – a lot more is required, private equity or combination of bank and private equity is more complicated… You contribution (available cash and equity) will…[Read more]

Are they residential apartments or commerical?

I have seen a few 3 property developments done on fixed price building contracts which helps with costings. If not fixed price you will need a quantity surveyor. Best option is to push forward with plans and permits and them get some builders to quote.

In the short term it’s still worth seeing if…[Read more]

What’s your. Little group called Matt?

Each loan can have an offset account.

This financial year e.g. Starting July 1. You have already now paid 1 years interest (paid July). If you break your fixed rate in June 11 to enable you to prepay in June 11 you will get another 12 months ( in this fin year).

That means your financial year ending ’30 June 10′ will show NIL interest and your financial year starting ’01 July 10′ and…[Read more]

The only thing I could say is to do it a month earlier next time… Nothing wrong with paying interest in advance at the start of June or mid June as long as you don’t miss the 30th. Noting it’s one of the busiest times of the year in finance.

Re the problem you have:

1: Lodge an internal complaint with the banks complaints area (get a…[Read more]

I’m against these set ups. Often these companies get up to 4% commission on the properties, upfront and trail commission from the lender and spotters fees from financial planners that sell insurance etc.

Problem is the whole concept revolves not around offering an all in one service, but rather creating a wall from any real independent…[Read more]

Albeit the proposal is important; most bankers get commission and bonuses and will help package a deal (bankers are sales people – just like brokers).

The key points are;

Experience – is it your first deal / or have you developed other properties
Hurt money – you need money in the project. You can not rely soley on end value. In most cases you…[Read more]

Have you tried going to a major. As I’ve said in a few posts CBA use gemworth however get automatic approval up to 1M. E.g. If they approve the insuerer automatically approves. Cba in my opinion is far more flexible than the other major 3: – saying that I think Westpac insure there own loans ( standard deals).

Go to a major and the deal won’t…[Read more]

If you have a loan of 380k you need a Val of 475k to avoid LMI.

6.3% is a bit far fetched. There will be other fees and charges.

I clicked post before reviewing my last post…

Similar applies to offset: your direct debit is based on the limit not the net amount interest is charged on. Change to interest only (as Richard mentioned) and you should only be charged the relivant interest amount.

If you let us know the bank the feedback can be more specific.

Reading your first post it sounds like you have a 30 year P&I loan not an interest only loan- which bank is it?

If you have a 30 year loan you will have a set repayment over 30 years to clear the debt. If you put in extra cash you can redraw to where you would have been if you made your standard repayment. Therefore think of your balance plus…[Read more]

Obiwan,Which bank are you dealing with? Banker