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  • Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Unfortunately the Westpac product is particularly poor when it comes to Security Guarantee loans.

    Cheers

    Yours in Finance

    Indeed. Did one very similar to this recently, WBC didn’t want a bar of it. Refinanced over to a more amenable lender, cut 0.4% off the guarantor’s rates in the process. Everyone wins. (except the outgoing lender)

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Unfortunately WBC will only allow parental guarantee’s.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    I wouldn’t bother with haggling a tradie on price. Get the quotes around, if you don’t like it don’t take up the quote. Haggling them on price is a great way to get them offside.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    The best rule of the them all: Use a GREAT broker who specialises in investment lending. A broker works on your behalf, so can find the best lending to fit your needs. Instead of trying to navigate the maze and avoid the landmines, build a team of professionals who can assist you with your needs. You’re going to end up with a superior result, increase your own knowledge and make your investments more successful – without a doubt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Yes there is one lender in particular who will provide a security guarantee for any person, no relation related at all – let alone close family.

    Which lender is your aunty and uncle’s property with currently?

    Corey Batt | Precision Funding
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Trusts can have very real benefits, but for some people they can be rather superfluous or ‘over kill’. As Terryw has mentioned, it is well worth considering, weighing up the pros and cons of buying in the type of structure. Finance can be affected by purchasing through a trust – something to keep in mind.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    If you are happy with the long settlement window, take it on as an unconditional contract (no finance). If he doesn’t complete, you keep the 10k. Issue being you have to pay the agent in the meantime.

    9 months is quite a while, I’d want 10% deposit to take on such a long length at a minimum.

    If you do go down this path and he rents the property, be sure to draw up a proper lease agreement and have an agent manage the property – the last thing you want is the guy to think the houses is now ‘his’ and damage the value of your asset, only to pull out before the 9 month settlement date.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Kirstie you’ve got quite a few questions. :)

    Form a great team of experienced professionals (broker, accountant, conveyancer/solicitor etc) who you can then leverage off their knowledge to assist you to meet your goals, and CHALLENGE your goals to make you achieve much more than you original set out on.

    Kinnon who has been posting a bit in this thread is a great broker who is also a seasoned investor, with experience in investing in multiple States – have a chat with her regarding your situation and I’m sure she would be able to open your eyes up to your potential, list any challenges you might face upfront and MOST importantly how to overcome them.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Make your principle place of residences loan interest only, if you have access to an offset account. From there setup a direct debit for the difference you otherwise would be paying with P&I into the offset. Place extra funds into offset until the balance grows enough to provide a sufficient deposit. If the value of the property has risen enough, you can also draw from the equity to assist in the deposit.

    Definitely get landlord expensive – it really isn’t THAT expensive. Usually only ~$250 which is tax deductible.

    Most importantly come up with a strategy. Work out what you’re trying to achieve and establish where exactly you are (aka, you have one property which you are going to turn into an IP). From there bridge the gap with a strategy which you are happy with. Once you have a goal its a lot easier to work out what properties in the future will be suitable purchases and whether they HELP or HINDER your plans.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Casual employment isn’t so much of an issue these days – lenders are realising that ~30% of the workforce is casually employed and need to accommodate this large segment of market.

    First port of call would be organise a valuation on your existing investment property, if the value has increased since your purchase + the excess you’ve paid, you may have sufficient funds to draw against to make another purchase.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Terry makes a good point. The value of an asset is only what the market will be willing to sell in a reasonable time. If you cannot sell it for that price, I’d hazard a guess that it’s true value may be somewhat less.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    The increment of the interest rate should be the same for all providers and it should be the increased cost of the money decided by the Australia Central Bank. The increase in general is done in 0.25% as long as I know.
    So if I start today with this rate it will be always the same compared with a different loan made with a different bank, isn`t that right?

    Unfortunately that is not how it works. The Reserve Bank of Australia does set the cash rate in Australia, however this is not necessarily linked to interest rate movements within the banking sector, and this has become more the case over time as funding sources have diversified further away from the RBA. Lenders are free to change their variable rates at any time to any rate they wish. Generally you will find the competitive long term big players will try to maintain a competitive advantage, whereas some lenders actively sell cheap rates, only to have the cost of funding continually climb after the loan is written.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    <div class=”d4p-bbt-quote-title”>Claudio_Baldo wrote:</div>
    We are buying our first home and the cheapest interest rate is 4.48% which is 0.5% less then the cheapest, I was advice of, from a bank (Suncorp 4.99%)
    Claudio

    Hiya Claudio

    If the lowest rate is the only thing you care about then go for it. It’s quite low.

    Cheers

    Jamie

    Remembering that what is the cheapest rate now, might not be that cheap in the future!

    I refinanced a PPOR for a couple recently who were with a online mortgage provider. The rate had creeped to 0.8% higher than the rate we refinanced them over to. Needless to say we put them with a lender which has a long history of offering competitive rates to new AND their existing customers, instead of running on a constant churn which bites into the customers which don’t keep track of their interest rates.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    I wouldn’t say financing community title is that difficult at all. Some lenders have a small few other requirements (solicitor inspecting the community deed at cost) but it’s not exactly onerous.

    • This reply was modified 9 years, 11 months ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Kerbsides can be so hit and miss because of this! Likewise I’ve had some very generous results come in for kerbside vals up to 10% above expected for refi/topup deals.

    As mentioned above, upfront val through another lender, upgraded to full val if necessary.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Banks count your credit card limit as double when applying for a loan.

    So if you ave $20,000 limit on a credit card the bank counts it as you having $40,000 loan do this will affect your borrowing capacity.

    Keep thinking. Or you could just work more and save quicker.
    Or look for ways to add value to the property you be, revalue, withdraw equity.

    That’s actually not true. Lenders factor credit card limits as being fully used for the most part, so based on a limit of 20k you might have repayments of $600 per month. Dependant on the lender, this may equate to a reduction in serviceability of 100k – so much worse than simply doubling the limit!

    With regards to your question Clint, the simplest way is usually the best course of action for a reason. Knuckle down and save for your first property, most likely something cheap and tired and could use a cheap spruce up. This will give you the opportunity to create sweat equity, which can be leveraged into further purchases.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    You might need to cop this one on the chin – the property manager however should have been smart enough to verify the basics before suggesting sending in professional. Keep note for the future to check for basic fixes before sending in the tradies next time, can’t trust the property managers judgement unfortunately!

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Security guarantee shouldn’t effect your stamps concession.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    http://www.certuslegal.com.au/conveyancing/buying/

    Quite a few clients use their services for Queensland purchases – from the broking side I’ve found them to be diligent and professional in their approach.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    The car lease will drop your repayments significantly. If you are looking to make a purchase/grow your portfolio over the next few years the lease will act as an anchor unless you’ve got sufficient income to absorb it. Best to speak to a savvy broker who can talk to you about your specific situation, and how a lease/cash purchase will play into your borrowing capacity. :)

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

Viewing 20 posts - 801 through 820 (of 983 total)