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  • Profile photo of FYIFYI
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    @fyi
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    April 6, 2004 - 1:37 am

    Skye,

    You can give me a call if you want on 9984-1911.

    I am a mortgage broker now, however I worked for one of the ‘top 4’ for several years inclusing their legal departments so I know alot about the actual process and what you can expect.

    I can probably explain a lot to you over the phone if this helps.

    [ohno]

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    Profile photo of FYIFYI
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    March 24, 2004 - 3:06 am

    Bomber,

    From your figures – you have equity, this must be an income thing. Hard to get around, you may need a more lenient lender.[upsidedown]

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    Profile photo of FYIFYI
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    March 24, 2004 - 2:53 am

    Answer:

    Used to – worked for NAB – left last June to go into broking…

    You have the other spot on – often comes down to who they are, not how well you get along with them! (although this can help of course – is this what you mean…?)

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    Profile photo of FYIFYI
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    March 24, 2004 - 2:47 am

    10 points disco Stu!

    [thumbsup2]

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    Profile photo of FYIFYI
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    March 24, 2004 - 2:44 am

    Doesn’t sound like there is anything wrong with that loan – I am aware of this rate and it is a good one to be sure.

    You won’t be able to offset your account against it though. Don’t have enough info to be able to comment on anything else. [biggrin]

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    Profile photo of FYIFYI
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    March 24, 2004 - 2:33 am

    This issue seems to come up often.

    You can have IO on your PPOR (line of credit) – but I have absolutely no idea why you wouldn’t to pay it off (tax deductible)!!!

    Sure your cash flow is better – because you have a loan that you are not paying off..[evo]

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    Profile photo of FYIFYI
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    March 24, 2004 - 2:21 am

    I have an excellent contact at NAB for these loans if you are interested.[thumbsupanim]

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    Profile photo of FYIFYI
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    March 24, 2004 - 2:18 am

    Very simply, you are doing both.

    You are paying extra interest to the bank (and ultimately paying more altogether as the principle needs to be repaid some day), and you are also delaying the repayment of the loan.

    You are only paying more as far as your monthly repayment goes for a P & I loan. If you looked at the total loan costs (IO vs P&I) you would find the IO amount to be the highest. It is sort of common sense, but alot of people do struggle with this.

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    Profile photo of FYIFYI
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    March 22, 2004 - 9:07 am

    Coming from NAB, any loan that the Personal Banker/Personal Banking Representative/Private Banker can not approve themselves under their DCA.

    Anything ‘referred’ by Siebel, or higher than their authority, is forwarded to the next level, usually LSU in Seven Hills.

    They can approve anything that is reasonable – especially for staff – as long as your case is strong. I have heard they are cracking down though. It really can make a difference who your is banker is though!

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    Profile photo of FYIFYI
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    March 22, 2004 - 8:56 am

    Simons question is the key.

    It is nice to get a tax break by structuring investment debt as an interest only, buyt if it is yoru only debt, why not pay it off?

    You can always re-gear into another investment if you get worried about your tax debt. Plus you are not solely relying on capital growth to make a profit. At the end of the day we are all trying to stretch the gap between what we own and what we owe.

    Let the tightness of your budget decide what is the best repayment for you.

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    Profile photo of FYIFYI
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    March 22, 2004 - 8:53 am

    Hi Bomber,

    Can we assume that you already have your investment debts structured as interest only considering you also have a non deductable debt?

    If not, start here![wink]

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    March 19, 2004 - 4:27 am

    YoungInvestor,

    Don’t you work for the NAB?

    The other two people who quoted the percentages for you are 100% correct.

    Sometimes NAB DO look at the whole rent, depends on who your personal banker there is, and whether it needs to be referred to a higher authority.

    Cheers

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    Profile photo of FYIFYI
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    March 19, 2004 - 4:23 am

    Definately a combination of the above.

    Basically, you would need to be able to stand alone as a self employed investor, and the income that the company makes would need to be able to service the loan.
    UNLESS the LVR allows you to structure your debts as ‘lodoc’.
    History, professionalism, approach etc – do not hurt your applications chances, but they are only considered as comforting factors – may sway an assessor if the loan is tight.
    Regards

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    Profile photo of FYIFYI
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    March 19, 2004 - 4:06 am

    Hi Wrappack,
    Unless you take out a construction loan you may have problems with the raising of capital. Initially the security you will have to offer a bank is a block of land only. As a commercial loan, you only be able to borrow between 60-70% (depending on bank) of the purchase price UNLESS you have another security. This means you would have to come up with the cost of construction plus the extra 30 or 40% plus costs.
    As far as a JV with a builder is concerned, the viability of this will come down to whether it is possible or not for one of you to provide an additional security, and your current debt positions which will also be taken into account.
    I would need more information to advise.

    Regards

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    Profile photo of FYIFYI
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    March 5, 2004 - 6:04 am

    ANZ offer the best range of products under ‘lo doc’, however LVR must be below 60% and loan amount must be less than $450,000 to qualify.

    St George only offer about 5 products under lo doc….

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    Profile photo of FYIFYI
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    March 4, 2004 - 7:58 am
    Originally posted by ActToday:

    Theoretically Agent’s should not disclose personal information but we know how stupid so many of them are don’t we. I once had a Commerical Agent try to sell me a private house. He had acted for the vendor in a commercial deal and was given the house to sell by a happy client. As the house was untidy, the embarassed Agent told me the vendor should pay for the pest report and to clean up the yard and this that and everything else including long terms for settlement and only $100 deposit. He also told me the vendor had purchased a commercial property and really needed the funds to pay for his new purchase and just could not possible hang onto this house. It was a good buy that was only messy but quite sound on a development sized block but I didn’t go ahead as it would have been a no-doc loan that would have restricted my future development. I’d sure call that Agent again for possible purchases.

    If I knew then what I know now……….you know how it goes

    I hope you wouldn’t be silly enough to have this guy SELL one of your properties![8]

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    Profile photo of FYIFYI
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    March 4, 2004 - 7:48 am

    Probably the cheapest way to finance a commercial property is by not taking it as security, but instead using current equity on properties by taking out a loan for ‘investment purposes’ at residential rates.

    Your strategy does not sound like this will ever be possible – I’m sure someone can give you advice regarding the other types of financing.

    Don’t forget the GST!

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    Profile photo of FYIFYI
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    March 4, 2004 - 3:41 am

    James,

    Normally, a redraw will only attract a fee for processing. As you can only draw out the amount you are ahead on your loan (which will roughly equate to any extra payments above the minimum you have made + interest doing this has saved) no mortgage stamp duty is payable as you have already paid it.

    Some loans (usually those within packages) are exempt from redraw fees altogether – but you will find whether this applies to you or not in your credit contract.[:)]

    You also don’t have to fill out an application form for a redraw – and it is much quicker….

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    March 3, 2004 - 5:23 am

    Mel,

    This is true – but no matter which property you use, the amount of equity available is still going to be the same.

    Having an unencumbered property would open the door for a possible investment based ‘lodoc’ loan in the future for example. (yes?)

    Matt

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    Profile photo of FYIFYI
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    March 2, 2004 - 6:50 am

    True – Sorry, Wouldn’t you prefer to have an unencumbered property if possible though?

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