At the lvr you are talking about have you included contingencies and interest cap?

Are you prepared to get presales ?

Is it your first or have you done this before?

It will be too small for a property specialist with a Major bank however there are plenty of investors that will take a punt on the 80-90k.

What state are you in?

I don’t usually give companies like this too much time – lodge a claim to someone like Vcat (vic) or contact an industry body to find out what dispute resolution options you have – If you bring in a third party into it e.g. Ombudsman or similar; they might pay more attention.

Bit of a tricky one. The banks have taken steps to prevent customers and brokers being able to pick a valuer that they have a relationship with.

For example – when the bank orders a valuation their computer takes the data re the property and allocates it to a valuer – therefore not even the banker / broker knows who the valuer is until after the valuation is orderred (computer randomly selects the valuer).

Once this is done – that is the only valuer the bank will accept.

Over the past two years a few brokers, bankers and valuers had taken advantage of the previous system.

You would be better asking which banks allow you to select the valuer.

As far as I am aware Westpac, CbA and BankWest have no ability to choose the valuer (unless credit make an exception).

This applies to retail – not commercial.

Number 8 – your right about some of the benefits but people have different goals.

Personally I have About 4 years to finish paying off my properties.

All I want to do is pay them off and collect rent, along with trail from my mortgage book. I don’t have any desire to drive nice cars – would rather live by a beach and surf every day. Work a day or two a week if I need to.

Like a lot of people I couldnt give a damn about having 20 properties –

why should I stay interest only?
I’d rather have my titles at home than funds available in offset.

2.5 months?
They don’t take that long – not if the deals are submitted properly

You’re right I don’t have all the details. But a deal that is submitted correctly should have a background on the client and a list of areas that the deal is outside of policy along with supporting comments re why it should be approved.

If a client has bad credit you need to outline the details of each default or judgememt, what caused the default and why the client is now good for finance. If all required info is submitted upfront you should be fine. If credit ask questions it is generally because there are gaps in the info provided. It is a broker or bankers job to present the file to credit and answer questions before they need to be asked.

I don’t have many strait forward deals – most are over 1m, most have a few properties and most have companies and trusts – defaults are more common with self employed deals however if the deal is worth doing defaults won’t stand in the way of approval.

You said on the 14 feb it has been two weeks – therefore almost 3 months to get your answer…

Not trying to sound like a prick however its a very long time – I’m not pro CBA but no lender on Australia takes that long?

Call the state revenue office. I had a similar problem with BankWest. The amount in my contract was incorrect. I notified them and they said it was an estimate and the correct amount would come back at settlement. They then overpaid the SRO.

Funny thing was when I called the state revenue office the knew which bank as I was one of many this was happening to. We filled in some forms direct with the state revenue office and got the money approx 12 weeks later.

It is something your conveyancer should have noticed.

You may not need low doc. If you are contracting full time to just one company you can be treated almost as payg.

You need approx 790k in total against two properties worth approx 1.1M. If you can show you can meet interest for 12 months ( plenty of time to sell) you should be OK.

You can use your 48k towards the 12 month interest ~ therefore must be able to service the end debt (after you’ve sold) or the balance of interest (annual interest less 48k) – higher of the two.

It is the type of deal that comes down to presentation – I would go to CbA or Westpac and say you will only deal with a relationship banker – branch network might struggle with it. A good banker should be able to mitigate your income. Banks also favor existing clients – if you want a hard deal approved your existing bank would be most likley to do it.

A warning here to others. There are reasons that banks lend lower ratios on student accommodation, retirement units, studio apartments and serviced apartments. This is due to the risk – both in return of capital and revenue.

Often operators of these businesses are also the developers. The revenue from the management company is not generally enough to service the development costs – therefore most sell down units / apartments to transfer debt from banks to investors (often a condition of funding)

A lot of mortgage brokers and sales staff take up to 4% commission on these properties. Don’t buy one unless you get a bargin. Don’t buy at the developers price. Don’t pay above bank valuation.

High risk investments
rental guarantee are not worth anything
capital growth is limited
they cost more than there worth
crap crap crap

Also worth noting you can get your banker to revalue your properties every 12 months. In most cases their system will not request a new Val if you stay within 8-10% increase per annum.

It’s a good way to bump up your limits annually without formal valuations.