Forum Replies Created
as another ex-i’ll save ya, 17 may have been on the panel, but do you really count Bank of Melbourne, Challenge Bank and Westpac as 3!!!! Last time i looked all three had the same head office..he he he
cheers
brahms
If you don’t ask, the answer is no!!
Hi there, i feel what you are proposing is terrific, i have been mulling over the same thing as my tenants birthday is coming up which almost coincides with new lease time.
having read posts on this thread, i’m quite happy to post a b’day card with 2 movie tickets – i’m really not going to say too much, but i do want to foster a pro active (albeit commercial) relationship (property is self managed).
if it takes $20 to save me 4 weeks vacancy, won’t need a calculator for that.
cheers
brahms
If you don’t ask, the answer is no!!
Hi guys, appreciate your feedback.
cheers
brahms
If you don’t ask, the answer is no!!
Pisces,
i’m sure the ‘bigger wrap operators are busy’ – a logical conclusion on wrapping from your reply to this post is to place poorly appreciating properties with your ‘financial partners’ at an inflated rate of interest, and possibly calculated on an inflated end value.
mmmm….’financial partners?’
cheers
brahms
If you don’t ask, the answer is no!!
interesting program, lucky it replays tuesday midday…
what would be the larger risk – consumers defaulting on $60k of credit card debt squandered on frivolous past times and tiddly winks (as graphically displayed on 4 cnrs program), or defaulting on existing equity (and $$$ hurt money) held in an appreciating asset ie. property.
as for mortgage reduction schemes, most of us brokers spend more time restructuring these ridiculous schemes – only 4 ways to pay of your mortgage in 5.5 years
1. pay more
2. live less
3. get a better job and do 1.
4. get a better job and do 2.cheers
brahms
If you don’t ask, the answer is no!!
chuckle, when you know your area, it probably is that straight forward – yes i’m being factitious.
cheers
brahms
If you don’t ask, the answer is no!!
Direct sales comparisons will be the most likely and possibly the only valuation method used for residential property.
Armed with confirmed sales evidence you can be fairly accurate, although most likely you won’t have internal access to many sales (valuers work specific areas and over time, build a significant data base of properties internally inspected, so when they drive past ‘comparable sales’ there is a high liklihood they have internally inspected many of them previously).
Remember you are paying an application fee, not a valuation fee in most instances, the fact that the application fee subsequently funds the valuation is inconsequential.
I’d be more miffed if the property transaction fell into a no val policy area, and the full app fee was still charged. This is the case for most of the mainstream lenders.
cheers
brahms
If you don’t ask, the answer is no!!
Hi Marisa, lots of replies for you, not much meat on the bone unfortunately. I just had a look on Resi webpage, easy to find, ran their calculator agains GE’s (mortgage insurer) and came up with Resi being able to loan only 82% of GE’s max loan amount, same scenario (ie. incomes, credit card limit and dependant children).
As there are many lenders out there able to easily outlend GE’s calculator, then I’d be under the opinion Resi is an extremely cautious lenders.
This is Ok if you have heaps of income and low debt, otherwise pretty much useless.
cheers
brahms
If you don’t ask, the answer is no!!
Marisa – check out if they mortgage insure all loans whether <80% or not – the likes of other mortgage originators also do this, ie. Wizard, Aussie, Macquarie etc etc.
I don’t know for certain if this is the case with Resi, but i’d be more surprised if they didn’t than if they did.
If you aren’t aware of the implications of the mortgage insurers presence, the forum will step in i’m sure.
cheers
brahms
If you don’t ask, the answer is no!!
Hi Misty1
A val will almost certainly be required – it will either require a top up on existing mortgage insurance, or new premium to be calculated if the loan is not currently or was initially mortgage insured.
Whats the ‘hsssle’ of a new valuation, takes all of 15 minutes and shouldn’t pose a problem – unless you’ve knocked out the walls and ripped up the floor and torn up the bathroom and kitchen.
If this is the case, then i’d agree, you will have a great deal of crap and stress.
If the property will value up and the above doesn’t apply, consider refi’ing to 90% and cap your MI to a max of 95%. Property will need to be in a reasonably large if not metro area to do this.
cheers
brahms
If you don’t ask, the answer is no!!
shudder…..shudder……
why do i always get the shakes when i hear the words ‘creative financing’……shudder again…..
cheers
brahms
If you don’t ask, the answer is no!!
Thanks guys – we’ve been able to supply full details, notes on circumstances, and as its 4 yrs ago and not too long to fall off cra – bank has approved and docs prepared.
Oh, and had the audacity to complain about the lost days and inconvenience!!!!
Better not get a claw back or i’ll really go off..
Boy oh boy, thank god for the good ones.
cheers
brahms
If you don’t ask, the answer is no!!
rob, re that highlighted post in melbears post – won’t the mortgage insurer and the funder be united in what they lend against.
(obviously the MI isn’t funding anything, i’m sure you know what i mean)
cheers
brahms
If you don’t ask, the answer is no!!
hi Melbear
i’ve found the mortgage insurer will take contract price even if valuation is higher (heck, they have to make SOME money).
this has occured in successful off the plan purchases (yes, inner city warehouse conversion). Say 10 – 12 months from signing contract to completion – val from which bank’s valuer exceeded contract price, funding was only able to be effected at contract price.
is there any other way?
cheers
brahms
If you don’t ask, the answer is no!!
I know this is a tad off topic – this is a little ironic – a country located property aged 50yrs will val at $10k land value, and $130k improvements – the same aged property in city will val at $130k land value, $10k improvements!!!
Hmmmmm, amazing how the ‘market price’ is explained for valuation purposes – if the country improvements were effectively depreciated, the val could easily come in a negative!!!!
Just an old observation rekindled by a ucv sub $1k. Goodness, somethings just won’t change.
cheers
brahms
If you don’t ask, the answer is no!!
yeah, depending on how ‘rural’ it is, safer to say 20% deposit will apply – hey, and it saves you mortgage insurance – so if the equity is there, you’ve got a good broker
cheers
brahms
If you don’t ask, the answer is no!!
marisa
financing will still come down to deposit, income and expected/existing rental return.
if the return is stronger then it will be a stronger deal.
case by case – post some math to work with and i’m sure some other answers will be forthcoming from the forum punters.
cheers
brahms
If you don’t ask, the answer is no!!
Hi Rob – The Mortgage Adviser – plus forum readers
i think any valuer worth his PI insurance will have Cadet Valuers working in the office collating recent sales, confirming settlements and maintaining their own database of recent sales (every time they do a val, it stays on their system, so the next time they are in that street, even if it isn’t posted on rpdata or residex yet – they will have the sale).
therefore, good valuers will have more up to date info than most customers (who are often armed to the teeth with listed prices from r/e windows and the local r/e section from the newspaper – which as we know has no relevance to settled sale prices.
valuers work specific patches, they become absolute experts in their geographic areas. for the miserable fee they are paid per job, you are getting a lot of experience.
i remember a geezer i worked with who was constantly harranging the valuers, barely a week passed with out some ‘issue’ – at the same time I was being invited to the footy with the same guys and my vals were getting on just fine thank you very much…[snitch]
back to topic, fully support the valuers, they aren’t out there looking for ways not to come up with the best figure – the good ones do all that is possible to make stuff happen.
after all, they don’t want the grief of every bank lending officer and every broker on the phone telling them precisely which way is the preferred way to suck eggs.
oh, and for the original post – just ask your broker to find out the figure, i’ve never had a lender not tell me that – even if you do have to do the reverse math with cba (tks earlier post)
cheers
brahms
If you don’t ask, the answer is no!!
bashiba, probably no polite way to ask this, did you inherit the 4 investment properties?
cheers
brahms
If you don’t ask, the answer is no!!
Hi Minmogul
re: “What ever happened to buying in an area you know v.well “
If I limited myself to that (i.e. London, Sydney, Melbourne, Auckland, wellington, LA) I simply wouldn’t be in the market now! I just made it my business to get to know other areas which had properties which fit my investment criteria.
Totally agree, if you make your business – however, not many +ve geared properties in any populated area. Sub million pop is regional.
As my post implied, my hard earnt dollars stay in postcodes i can walk to, because a.) I can afford it, b.)I maintain control within feasible means, and c.)if its not metro, or metro with water views – or within ‘easy’ commute to above – what does it have?T
hats what I have identified as best for my circumstances, having lived and worked in rural/regional Aus, and as an active purchaser, I have no confidence in non metro regions to perform long or even medium term.
Have you heard of ‘who moved my cheese’? it’s about a bunch of mice who react differently to the fact that one day the cheese that had always been there had gone. Some went to find more…others stayed there and waited, wingeing about it….you get the picture.
Of course, read it….blah blah blah……..same self help book different title.
My observation is that if so many investors have in the past been so effectively enticed into Gold Coast 2 tier markets, then how many can be separated from their cash and equity by not conducting sufficient due dilligence into investment properties in regions or countries with base economies in primary industry, cottage industry or tourism. Off course they are cheap!!.
cheers
brahms
If you don’t ask, the answer is no!!
