Forum Replies Created
Usually it is very difficult to get info about foreclosures and if you ring up the bank they will tell you to go elsewhere, so you really have to find a kink in the system (e.g. a lawyer who is told about alot of the banks foreclosures). It would be a very niche play.
FFComm
I would avoid using the NAB, I have heard nothing but trouble when dealing with them.
St George have a debit card that uses the VISA network and seem to have very competitve products and fee structures.
I have also heard good things about ANZ and Westpac. Also Commonwealth are going through a major restructure.
Credit Unions and smaller banks (Bendigo for example) can also be quite good but usually they are limited to a geographic region which can be a bit of a pain, but apparently you can get the same kind of debit card I mentioned above (i.e. connected through the VISA network).
FFComm
foundation, if assets are in your name and you make a mistake lawyers can come after assets in your name, however if assets are in a trust they cannot touch those assets if they are suing you. Also it provides a number of tax advantages.
FFComm
Check out the ‘Legal & Accounting’
-> https://www.propertyinvesting.com/forum/forum/23.htmlFFComm
Tony100, you have outlined the downsides to resi and commercial quite well. The main reason people don’t invest in commercial is due to high upfront $$$ required. One can get 95% Loan to Value Ratio for Resi, but as a minimum you usually have to put up 30% deposit for Commercial properties, and in fact usually more!
If you have the money for adeposit, you can do quite well with commercial.
FFComm
Checkout http://www.jaffasoft.com to find out your CoCR.
FFComm
So you basically cross colateralised the loan.
But in the end in my mind it was not 100% stand alone.So if you mess up with repayments they can sell the most marketable property, which might be the one which had all your equity in.
To me a 100% deal is where the bank gives you 100% of the finance, using the house as the main security alone. If I use equity thats not a 100% finance, because I am still throwing cash into the deal, it might not be cash I earned, but it still is cash that I could spend on variety of other things.
FFComm
crusher, you did not get a 100% mortgage. While you might like to think St George gave you 100% finance they didn’t. What they probably did is give you a loan for say 80% of LVR on your new property, and increased you other loan by 20% (because if they did give you a loan for say 100% you wouldn’t of needed to use your exisitng equity).
People might not want to use equity for a number of reasons, one reason being is that they don’t have equity, another is that they would rather use equity on a more profitable project where the banks require higher LVRs (commercial for example), and yet they find a house returning say $2K +CF per yr.
8.9% isn’t that high, I’ve seen worse. FW probably full docs, but heres hoping!
In some ways I’m surprised that there isn’t a 100% loan with a higher interest rate that is more avalible (i.e. a 100% loan offered by the banks).
FFComm
Which finance providers provide 106% LVR loans????
FFComm
Check out http://www.jaffasoft.com for an excellent online calc.
FFComm
Westan’s details:
https://www.propertyinvesting.com/member/profile.asp?mode=display&id=3538FFComm
“Vendor finance $100,000
Bank loan finance $ 50,000
In this case, the vendor amount is more than the bank loan. How would this affect the title?”> Really it’s up to how the deal is set out. However usually Banks will demand a first mortgage. So either the seller can resisted a 2nd mortgage or a caveat over the property. Of course the seller still has title.
“Can I then go ahead and wrap the wrap to another person? “
> Yes you can, but it can get very messy and it is something that is not really recommended for a number of reasons. These include what happens if the new buyer (or the 2nd wrapee) defaults and you can’t find a new buyer in time. Another problem is if the owner of the property goes bankrupt. The bank may reposes the property, have fun having that sorting out that mess!
I would speak to a good solicitor about these issues first.
Rgds.
Lucifer_auI agree with TB.
Although in theory it sounds great, making it work in the real world can be very difficult.
A L/O (Lease option) would probably be the way to go. Just a quick note their can be serious repercussions if you do not structure it correctly. And of course always try to make it a win-win-win.
Rgds.
Lucifer_auThey exist. I would suggest you read Steve’s 2nd book ($1,000,000 in property in one year) to understand that you will have to do creative things to make it positively geared (such as storage units, etc).
As for locations, you have to reasearch them.
Rgds.
Lucifer_auMmmm. V. scary stuff.
“Fair and Balanced” should read:
Un
Fair and BalancedIn regarss to our media, although it has a high onwership % I think they covered the election quite fairly.
Rgds.
Lucifer_auThe family court can overule companies and trusts.
They can also overule pre-nups too (even if everything has been followed to the tee), saying that though they usually use it as a basis.Rgds.
Lucifer_auYou need to buy steve’s second book as that is more up to date with the current market conditions.
Rgds.
Lucifer_auRight now the ‘big’ (institutional, etc) money is in minerals and other primary products (oil), consifering Austrlia major exports are mineral we are riding on the back of that to a degree.
Also with a decline in property prices many people are placing money back into super also.
I do think there will be another bull run in the sharemarket after the cycle turns aginst minerals.
Rgds.
Lucifer_auTrusts cost around about $400 wholesale and $800 for companies.
If you know what you are doing it’s quite easy to set them up.
Of course the greater evil is runnimng them the correct way.Rgds.
Lucifer_auI don’t know the NZ finance market that well, but I would borrow as much as possible, and put any spare money into an offset account. This means that you reduce your interest bill while assesing opportunities.
Rgds.
Lucifer_au
