@rob H yes thats right and you can borrow 105% in order to cover all costs involved.

If you do have savings you now have the option of holding it back as a buffer in an offset account. This helps you pay less interest on the loan as it “offsets” the debt.

Many other benifits in addition to the one mentioned, if done right.

Ossi89 wrote:

Thanks for the info!
Is it necessary in this situation to have a 20% deposit (equity from my parent’s land)? Or can it be done with 10%?
Thanks again!

20% is required as any less is in LMI territory and the LMI providers wont do these deals.

You could always get the full 20% and repay or offset the loan with the extra 10% you may already have. Swings and roundabouts really.

Is it easy to find a lender that assesses it this way?

Yes.

Could it work for multiple properties if we were to find the right lender or would we be better off keeping everything separate from now on?

Yes can work for multiple properties with same lender.

@jambv Did a quick google search and came across the following which I found interesting and you may as well :)

Queensland (QLD) Real Estate Fees, Agents Fees, Real Estate Commission

Caution… it’s not what the agents charge you at the start that is important, it’s what they cost you if you use the wrong one! The official line from the Queensland Government is…. The law no longer caps the amount of commission an agent can charge for residential or rural property transactions this commenced on 1 December 2014. The deregulated system means you are more likely be able to negotiate with agents about their commission. This is the ‘official’ line. Compare the agents for your suburb including their commission and marketing costs COMPARE AGENTS…

• This reply was modified 8 years, 2 months ago by  Colin Rice.

@rex, let the figures guide you.

What was the previous 10 years growth on the apartments you are considering v the house you are considering purchasing?

I like to look for houses that I can add value to either via a renovation or even better (potentially) retain and subdivide or knock over and replace with multiple properties.

Depends on how involved you want to get. Developing is not for the feint of heart but can be lucrative if you get it right.

I have an eBook development course I am happy to email to you.

Purchase price was $500k for 4 x units loan for $530. Valuation came in at $475k

@menunes That sounds like a xcoll loan structure. I would advise getting it restructured before proceeding with any subsequent purchases.

We looked at the rental opportunities and made the decision for purchase from the figures.
Taking up the equity on other investments has slowed us down for a while as we are “maxed out” according to the banks.

Are you dealing direct with banks or via a broker as there may be unexplored options for you to consider to extend borrowing capacity.

You can work with more than one broker and see who can get you a better valuation and better interest rates deals

I 100% agree with Jamie. When dealing with professionals in the various aspects of property who are commission based it is only fair to treat them with respect and be upfront as well. I would also decline the business if I new I was competing with another broker as I could spend this time with people who are serious about engaging my services, which is for free :) until a deal settles and then you get paid 2 months later. If the shoe was on the other foot you would agree @jagsingh. Its likely if a broker is happy to compete against another broker or bank for that matter they are desperate for business!

• This reply was modified 8 years, 2 months ago by  Colin Rice.
• This reply was modified 8 years, 2 months ago by  Colin Rice.
• This reply was modified 8 years, 2 months ago by  Colin Rice.
• This reply was modified 8 years, 2 months ago by  Colin Rice.

I attend meetings from another forum that are on a semi regular basis at a pub for lunch on the weekends and sometimes in the CBD during the week. There are some active developers and investors in the group as well as newbies.

Im located in Perth so you would have to see what meetings are local to you and get a along and start connecting with like minded people.

So, my naivete is quite prevalent here. How would I go about finding a reputable broker, and what kind of payment/fees do a broker usually have?

After doing some preliminary investigation with my family, we’ve discovered a rough borrowing capacity. But, yes, what steps should I take now?

Thank you so much for your reply!

I personally dont charge fees as lender pays me a commission for introducing someone to a new bank or arranging affairs with existing bank, if it suits the clients stated goals, both current and future.

Distance isn’t and issue as I have clients all over Australia and many I have never met face to face. With modern technology these days its very easy if all parties play their part in the process.

“If you are going through hell, keep going” – Winston Churchill

• This reply was modified 8 years, 2 months ago by  Colin Rice.

In regards to the initial deposit, pay as little as possible. Often they ask for 10% of the purchase price. Make sure its refundable if you dont proceed with the purchase. I have held blocks of land for as little as 1k deposit.

The remaining balance will be determined by what LVR you are intending or capable of purchasing at. If a 90% LVR and you paid 1k holding deposit then it would 30k – 1k = 29k plus the applicable stamp duty rate for your state.

Im in WA so first home buyer would pay $380 in govt. fees only and a non first home buyer will pay $9,200 stamp duty on a 300k purchase. Stamp duty is payable at settlement and refunded to a FHB once construction loan is partially drawn at slab down stage in most instances.

• This reply was modified 8 years, 2 months ago by  Colin Rice.