Forum Replies Created
Brahms
I don’t think the financier is suggesting YOU lied, they have asked a fairly simple question once they found something unexplained on the credit check.
How about – well, the client didn’t inform me of that fact and therefore I didn’t put it on the application.
Truth is good!Keep smiling
Felicity
Usually my buyers connect services once they’re going ahead with the purchase. I always tell them in advance (as part of talk about maintenance – it’s your house, your problem!) that if they connect services and find that something doesn’t work, ie kitchen fan (I’ve had to fix 2 of those!) then I’ll fix it. If it breaks 6 months down the track, not my problem. I recommend that one of the first things they do is go around the house and test everything, ie turn on fans, and the oven, and heaters etc etc so that they find out straight away.
Keep smiling
FelicityWell, I realised last night that I would fail the princess in waiting test – I’d want to giggle! There’s no way I could look as beautiful and regal as Mary did throughout all those hours.
Oh well. heheheheKeep smiling
FelicityI would never “settle” for anyone.
And I think hubby might have something to say about it anyway….Keep smiling
FelicityPersonally, she can have him with my good wishes!
Considering the media circus that most royals are exposed to nowadays, I wouldn’t want to marry a prince.
Fame in whatever shape it visits you doesn’t strike me as being a desirable place to be.Keep smiling
FelicityHi Rob
Believe me, I know there’s always a way! Otherwise I would have given up a long time ago on my property journey, and wouldn’t be where I am today.
Sometimes it just costs a little more to move ahead, that’s all.
When you add together lousy tax returns, FT investor and FT student, it’s not a good look for full financial loans!!!
That’s okay, I’m still moving ahead and finding different paths to follow.Keep smiling
FelicityHi Rob
Unfortunately my accountant did his job too well last year – nice refund, lousy returns for full doc loans….Keep smiling
FelicityHmmm I had replied already but it seems to have disappeared into cyberspace!
Yes Brahms, I am well aware St George charge LMI, I just paid the premium! But they self insure, which avoids the problem I have with being maxed out with GE and PMI.
I plan to do a few more loans through St George and avoid La Trobe again for a while.
I have looked at non conforming lenders, but their break costs aren’t particularly friendly either, and at least Latrobe’s rate is 7.34%, much better than the non conforming lenders.
JVs and 76% here I come!Keep smiling
FelicityHi Rob
The fees and charges aren’t “hidden”, they’re just phrased in such cute terms that unless you actually sit down with a calculator and work them out, you really don’t understand how much they’re going to cost you.
I must admit that first time around I also didn’t realise that BOTH early payment fees would apply either, it took 2 readings to get that one worked out.
Oh, and if you can find many other lenders doing 80% LVR lo doc with no mortgage insurance at 7.34%, I’d love to hear about them!!! St George is the only other one I’ve found (and they have LMI, they just don’t use PMI or GE).Keep smiling
FelicityOriginally posted by wayneL:Some insurances are outright scams.
But in this outrageously litigious society, I wouldn’t be caught dead without public liability and/or professional indemnity insurance.
Hear hear!! You can usually work out the costs of replacing a house, or a car etc etc but you can NEVER have a figure for public liability. Claims can be in the millions, and that’s impossible for most people to self insure for. If nothing else, you don’t want to be involved in the stress and hassle of a public liability claim, you’d be much better off being able to handball it on to an insurance company and let them deal with it.
Keep smiling
FelicityThe thing I find frustrating is that these break fees are often “hidden” in garbled wording or unclear statements. Some loans (not fixed rate necessarily) also charge you an early repayment fee if you pay a slab of the principal off.
My favourite is Latrobe Home Loans, if you want seriously nasty break costs that are not easy to spot.
You have an early repayment fee, which is charged whether you repay the entire loan or make a principal reduction – that one’s equal to 3 months interest, with a minimum of $300. Not much point paying off $1000, is there?
Then you have a refinancing call protection fee, which occurs if the loan is refinanced within 5 years – that one’s 6 months interest on 80% of the remaining loan balance.
So, to refinance out of a loan of say $150,000.
You have the early repayment fee of around $2750, plus the call protection fee of around $4500.
Suddenly $1000 doesn’t look too bad at all…..Keep smiling
FelicityQuote:Originally posted by calvin@thirty4:Hi I’m new and wish I had your problem! To repeat what I have been told at a seminar, where the present too had this problem, he diversified the owners. As in, one for himself, one for his wife/partner, one for the family trust and one for the company he owns (or one for each of the companies he owns), etc…..
It was also mentioned to utiles more than one lender with the different homes/ family trusts, companies, just mix it up. That way you can offer more than one mortgage as sweetner to the lender. Anytime you want to swap portfolios, drop me line….
[exhappy]This works up to a point (ie using different individuals) but the idea of having multiple companies or trusts is not as useful as in the past. Most of the time you are required to be guarantor for loans to your trust or company, and nowadays that is listed on your credit report. This is only a recent development (ie last 1-2 years). What it means is that when a lender checks your credit report, they now see all the guarantees you have given. It used to be that you could guarantee millions of dollars of loans in different structures, and the next lender wouldn’t know.
To a great extent that option is now gone.
But there are other solutions, it just means you may have to pay more in interest!Keep smiling
FelicityHi Delboy
I wouldn’t draw the same conclusion at all! [blush2]
Your level of cashflow profit is dependant upon the difference between your loan (and repayment) and the wrap buyer’s loan (and repayment).
So it’s not the price range of the house you buy that matters, it’s how well you buy that house that makes all the difference.
As a very rough example, take a house with a “market value” of $200k.
Option A – you buy the house for $190k and wrap it for $220k.
Option B – you buy the house for $170k and wrap it for $220k.
In both cases your wrap looks the same – $220k at 9% say for 25 years.
But your cashflow will be quite different! There is a difference of $20,000 between Option A and Option B, and that $20,000 would be at least $50 a week more profit.
Hope that makes sense.Keep smiling
Felicitydelboy
I sell houses for as much as $360 a week in areas where rentals are $180 a week.
So yes, it works. Most people (in metropolitan areas, anyway!) accept that it costs more to buy than to rent.Keep smiling
FelicityHey Jo
Interesting question!
Perhaps by jumping up the bidding and knocking this couple out of the race, you’d be doing them a favour. If they’re cringing at every increase in the bids, it suggests they’re already bidding above what they can afford.
If you let them buy the house, you may be sentencing them to a financial commitment they just can’t afford. Maybe it’s going to hurt them short term to lose the house they want, but perhaps the fear of having such a big mortgage will make them rethink what they’re doing and instead buy something they can comfortably afford.
But then again, maybe not!Keep smiling
FelicityMy heart goes out to her poor husband, they were insperable for 55 years, and he’s totally bewildered. Poor man.
Keep smiling
Felicityg7
You can wrap anything. Having said that, obviously you have a bigger pool of potential buyers when the repayment is lower.
But I’ve wrapped plenty of houses in the $150-200k range successfully, so a low price tag is not essential.Keep smiling
FelicityYes, this is exactly like a wrap! The only difference would be that your mum may do things this way out of love for you, and as long as she’s not out of pocket, she’ll be happy. In a wrap the wrapper does have to make some money from the transaction!
One thing you need to work out (and this will depend on what state you’re in!) is whether you’re actually BUYING the house from your mum, ie using a terms contract, or whether you’re leasing it with an option to buy.
Make sure you have a wrap savvy lawyer draw up the contract. I’m sure you and your mum trust each other, but you will need that contract in order to refinance down the road.Keep smiling
FelicityKen
Why do you need private insurance to have a baby?
I’ve had two on the public system (partially due to health issues) and I have no complaints at all.
Various friends have had them at private hospitals with private cover, and have been gobsmacked by the bills they still received, even after all those premiums.
Maybe it’s nice to have your own room etc, but in the end, it’s a lot of money for a few days of comfort.
Plus the choosing your own doctor thing is overrated as well in my opinion, doctors only show up for the last little bit, other than that it’s the midwives who look after you.Keep smiling
FelicityHi Camel
I would guess that they have a formula they use, very similar to the suggestion I made in my original post. Being a much larger company than an individual wrapper like me, their calculations would probably be based on a lower interest rate. However the flipside is you need a much larger deposit then the average wrapper would expect. Plus you will also need stamp duty up front etc.
Again looking at it from the wrapper’s perspective, as far as I’m concerned, if I’ve worked out a weekly payment, I’m not going to quibble about whether we call it P&I or a straight principal repayment!
Personally, I buy my houses and then wrap them, but there are others who will let you choose a house and then work out the details.
This has been an interesting exercise!Keep smiling
Felicity
