Do you think anyone likes to pay LMI? ;)

Certain professionals and lender employees can get 90% no LMI on their loans as the lender must view them as low risk/valuable customers.

You won’t have much like getting an Australian lender to take security over that property. Are you able to use a local bank in Holland to draw the equity, then direct the funds to Australia for the future purchase?

LVR is more of a factor for desktop vals than loan amount/property value. Desktops can be quite favourable, but there are quite a few times where they come below fair value. Most lenders have processes in place however to upgrade these vals to drive bys/full vals if the broker requests.

Renting whilst investing can in many cases be more cost effective, though there are a few markets where it is still more affordable to buy than rent of course.

There is the personal/emotional factor of course, whether you like owning the four walls around you, or are happy to rent whilst investing the difference.

Renting the duplex in it’s…[Read more]

Not a problem Charlies, I’ll let the organiser to put down a +1 for you.

Hi Charles,

The next meetup is on the 30th at this stage. Info here: http://somersoft.com/forums/showpost.php?p=1178245&postcount=220

Hi Charles.

The Adelaide meetup group generally meets towards the end of the month, on a Monday evening. It’s on the Somersoft forum:

http://somersoft.com/forums/showthread.php?t=84714&page=11

Last meetup had investors from SA, WA and NSW all come down.

No, thankfully you will only need to show that you have saved over 3 months with the end balance being 5%. :) For example in your hypothetical purchase of 330k you would need to show a bank statement showing an increasing/steady bank balance with an end balance of 16.5k. In reality you would need to show a higher balance of course for funds to…[Read more]

Hey Magic,

You’ll only need to show 5% genuine savings via a three month transaction statement within LMI territory for most lenders, some won’t require this sub 90%.

Changing employers also won’t be a huge problem if its a permanent role. if you have a probationary period most lenders will want to see you off it first.

Lenders will take into…[Read more]

Peter Tersteeg at Sage Lending solutions 1300 880 225

http://www.sagelending.com.au/

In saying that, in this day and age you can use a broker anywhere in the country as most work is done via phone + email. In saying that, I can appreciate the value of being able to sit down in front of a broker. :)

They should be able to provide information regarding why the build val has come so far below, especially with regards to price per sqm. Request info regarding this and find comparables to reflect the val your friend needs.

Everything else is just static, it’s unfortunate that it’s happened – time to resolve things now.

Do you have a signed contract with both builders that costs would be 50%?

Generally I’ve known the higher side property to foot the entire retaining bill.

Just a cash grab. The same services are being provided to owner occupied and tenanted investments, so rates shouldn’t change.

It would be different if this was a private sector service, but this is a local government charge. You should not be slugged more for a service without adequate justification – which does not include ‘they can afford it’.

I wouldn’t say it’s necessarily a case of breaching duty of care, but a bit of poor forethought on the brokers side perhaps.

There are plenty of reasons why a person would source finance for a vacant block of land, I wouldn’t expect a bank to refuse finance based on potential issues moving forward for construction.

If the block value has gone up…[Read more]

Market economy, as DT has mentioned – if there is the potential to open an agency running on lower margins as their point of difference, it will most certainly emerge. Some of the business administration costs in WA are quite high.

Lower of the two values as per norm.

Which lender is this? If you have to go back to assessment, quite a few lenders will be able to run this through the processes relatively quickly, unless you’re with one of the snailbased banks. :)

Not the best situation!

Generally it’s adviseable to put the land + construction finance in at the same time, to avoid these issues – though usually it’s the land coming under, as opposed to the build. The 2yr fix is going to act as a further anchor.

Did he pay LMI? If he settled on the land recently and his fixed rate reflects the current ADL…[Read more]

Agreed completely with Terry. There is almost no practical benefit to x-coll, so it’s best to have this sorted out sooner rather than later.

It may seem daunting, but a decent broker can unravel the mess if they know what they’re doing. :)

Thankfully Homeside have a decent upfront valuation process.

Homeside for an initial lender isn’t ideal, as they are generally best suited for mid term, end term investments where serviceability is drying up amongst the conservative-mid range lenders. The second property might be a good chance to diversify into a more appropriate lender if…[Read more]

The above applies then. If you do need to draw on equity for the purchase deposit funds, have this setup as a separate split so the deductible/non deductible funds are clearly defined.

And the usual advice to avoid having the two properties cross collateralised.