Forum Replies Created
thanks Terry..
Hi Janet,
What LVR was the Westpac lodoc loan?
Did you have to put down a ABN number?Thanks
GrantHi Giovanni,
I would strongly recommend using a deposit bond rather than cash.
I used one through deposit access recently.
http://www.depositaccess.com.au
[email protected] (donnie was helpful)
Its worth shopping around as they charge different fees and have different requirements. Some said I wouldnt qualify while others said I would! They do up to 5 years bonds.
Anyway thru the above 56k over 4 yrs should cost you about a $7000- once off fee. (check their online calculator). However 56k redraw at 7% would cost you more like 16000-
As you say you could use that 56k more effectively on another investment.
You will have to have equity in a existing property to get the bond, but what I like is that they dont actually take security over that property. ie. your still free to refinance it if required. They would only take a caveat over your property if you defaulted on your off the plan purchase – forcing them to pay up the bond!
I brought my of the plan for $615k with 10% bond, recently valued at 750k and still a year or 2 till completion. When finished I will get revalued and with 30% equity be able to buy no money down. (except for a $4000- bond fee).
So can work quite well (if you buy the right property!!!)
Hope this helps
GrantHi G,
Isnt the rams pro-pack a Lodoc not a Nodoc?
Thanks
GrantThanks GR,
Just trying to digest all that.first you get a end value of the project in your case 580k then you take 66.79% which is norm not 69% of the 580k which is 387,380.00 thats is the complete lend you have out of this 5% contingency cost 19.37k the lender hold this and interest 27.12k = 340.89k
So are you saying the lender lends 340.9k. Purchase price was 400k so would I have to put in 59k deposit (+costs)?? Why do they keep back 12 mths interest, does that mean I dont have to make repayments for 12 months? What is the 5% contingency?
will require a fixed price contract and will pay that in the way that the fixed price has been drawn up and can’t be higher then this amount and that is working out that the land is free of debt.
Is that just the sale contract for 400k?you don’t need council approval but its valued by a valuer on the lenders panel and they wont extend more the 66.79% of the value or work done and if its classed as a raw site the value is alot less.
The 580k is just based on comparable sales, if land subdivided. If I dont need council approval how would they know it is subdividable (ie. I havent made a mistake in zoning or something). ?
What do you mean classed as a raw site?the above is also all ex gst so you need to fund the gst component which is 40k in this case on top on the lend.
Should I need to add GST on a residential block if the existing house is old and if I build 2 more I will rent for 5 years before selling (therefore no GST)?
Thanks for your time, and I’m having lots of fun.
Cheers
GrantThanks Simon,
Yes her branch lender is on holidays, and 4 calls left today with still no returned call.
We were just wondering in general how bridging finance works and maybe anything we should be checking or asking about. When or if we finally hear back from Westpac.
Is anyone familiar with Westpac bridging and what it might entail?Thanks
GrantThanks Simon,
I dont wish to shift the loan, I just want to shift my PPOR to another lender (debt free) and I was wondering do I need some papers or something from the bank releasing it before I can do this.
Thanks
GrantFriend of mine also uses ANZ. When he wants to refinance he just gets an appraisal letter from the local REA and ANZ are happy to use that as the valuation.
He gets a few letters and uses the highest one!!
He always works below 80%, it obviously wouldnt work if a MI was involved.I would be interested to know if its ANZ policy or just something this local branch is doing? Or if any other lenders will accept a REA appraisal.
Grant
Hi All,
Thanks for your comments / input.
My accountant has said that any lender that requires gaurantees from trust beneficiaries is wrong as legally no benficiary can be held liable for the trust debt.
However it seems out of policy some lenders do and some lenders don’t.
The wise old TerryW (broker) has told me to avoid problems it may be best to have no named benificiaries. If you want to distribute to someone just form another trust for them (cheap).The issue is with named (not general benificiaries). The only reason I have them named is that they are not related in any way.
Anita I would have thought that you wouldnt need to name your son in the trust as any trust should automatically allow you to distribute to children / cousins / inlaws / other trusts etc.. as general beneficiaries.
Cheers
Grant
Hi HB,
The beneficiaries are unaware they are beneficiaries as they have recieved no income (yet).
The tax issue is quite simple – they pay tax out of the money they recieve at whatever there tax rate is.Cheers
GrantCan you do construction loans with no doc?
Thanks
GrantHi Terry
What does ‘A & L 2.5 times loan amount’ mean?
Do they do this loan for residential construction?Thanks
GrantWell, today was a lovely summers day, the surf was up etc..
Unfortunately I couldn’t enjoy it as I was stuck at my desk pushing my mouse around [glum]
However thanks for all the responses which have given me some hope of freedom![smiling] (from my job)
Hello grossrealisation.
What is ‘hsbc’
What do you mean by a term deposit helps serviceability?
What is private finance?
HI Cameron,
I’m self employed with an ABN 12 months. (Drafter type person..)Have some equity.
What is an equity partner?
I currently target residential duplex/triplex.
A lender that would value on finished value would be nice as this will always be below 80%.
Thanks
Grant
