Forum Replies Created
Thanks Diamond,
I understand the point you make, however, when a bank looks at their assets etc when it come time to cash out, the bank does not take into account the fact that there is an installment contract on the property. The mortgage and title are in the names of the trust/company, so in fact in the eyes of the lender, they don’t have any equity, however they do have a sound saving record.
The only way I can see it working is by the wrapper gifting the principle and equity to the wrappee so they can get the loan to cash out.
please tell me if I’m wrong
cheers
Hi Lioness,
Another advantage with a LOC, is the fact you are able to split your account in to sub-accounts which will help keep in clean when tax time comes around. This way you can montor cash investment and interest paid on each loan.
Some of the banks will allow you to have up to ten sub accounts for no extra fees ( excluding your yearly account fees)
Also, Most banks will not entertain second mortgages either so LOC makes a lot of sense.
CheersEP
Hello 6 x 1,
For rental occupancy try the local council where you are looking to buy, some help some don’t all you can do is ask.
As for a book, try your library.
The king has left the building…..
Hi Tamara,
I understand the frustration you may have in getting finance while you are overseas as banks like to see you pay taxes in Australia for two years before they lend.
You mention that the banks will only loan you 80%. Be careful with this information as this LVR is mostly only available in built up postcodes, if the property you wish to buy is in a remote postcode the LVR may be closer to 70-75%. Check when you chose your property.
Seeing you are saving so much each month, I would think that a 20-25% deposit would not be too much of a struggle. By also providing this amount of deposit you will have:
instant equity in your property.
You will not have to pay MI(Mortgage Insurance)
You will take the decision, if the property is remote, out of the hands of the Mortgage Insurer.
The repayments will be lowerAs for Brisbane property, AD lives up there(we are on the Gold Coast) and he may know of a broker who can help you find a property that meets your criteria.
Say hello to the Sultan for me…
Cheers
EP
Hi Gordi,
Building a portfolio is not going to happen straight away. It takes time to create your plans, goals, knowledge and to put your systems in place before you should can start “looking”.
My advice is to set your goal, what you want to achieve from your business etc etc.
While you are doing this, take a good hard look at your personal spending habits and ask yourself some questions, what do I spend on entertainment? how much take away do I eat? Do I have any assets that I don’t use- can I sell these to get rid of my bad debt?etc etc I am sure if you look at your situation, you will be able to find answers to your questions raised in your post.
So, the fact is, you can start now. By restructing your loans(consolidate them if you can) analysing your spend and planning ahead, where do you want to be tommorrow, next week,
next year.Hope this gives you something to think about.
Cheers
The king of rock’n’roll
Hello Mixrex,
I’m sorry, I obviously made it confusing.
I was looking at it from a ‘wrappee” point of view when it came to the time of cashing the property out.
Seeing their name is not on the mortgage or contract, they have NO record of savings and when it comes to cashing out the property, they may need the ‘wrappor’ to ‘gift’ them the equity in the property, which has been built by them and/or capital gain, so it shows to the banks they have the ability to save and meet repayments.
Does that make sense?
cheers
I understand the P&I at settlement thing,Hi Semesteve,
Speaking from experience, don’t give up your day job, until you have hit the ground running with your new venture. Any new business takes it time getting started and before you know it, cash reserves are low and things get a little harder.
Looking at it from a lenders point of view, when you apply for a loan they look at ‘the ability for the loan to be serviced’ in other words, can this person pay the loan off, keep your job for the short , it will be easier to get finance.
There are heaps of locations with properties for sale around that price, YOU just have to look for them.
go get em tiger
EPMagic!! thanks for your input guys.
Andrew,
have spoken to my contacts at macquarie up here re finance, they don’t like it. am having further discussions this week, will keep you posted.cheers
Thanks Steve,
This is what I am doing now that I have “retired”.
Have searched and found some great information. You provide a great service for those who are looking to get out of the “E” quadrant.
thank you very much
