Forum Replies Created
sorry about that lovely signature,
Regards,
Ivan
0403 044 660
Dear MM,
Responding to your reply last night:
________It is easy to get a loan for this property if it is zoned residential and the town has 10,000 people. No mortgage insurance will apply if you have a substantial deposit. I would still like to know how much deposit you have before I can tell you which product is available.
I did a low doc, rural zoning, 48 acre property recently and that went through fine. If this can be done, your’s certainly can be. I don’t the whole story has been presented yet. It is a house isn’t it?
_______Thank you for your response.
Firstly, yes it is a house. A fibro and tile house, but a house none the less.
In relation to the deposit I have available, I could deposit up to 60% of the value of the house, it’s just that I don’t believe that would be the most effective way to tie up all that cash. As I’m sure you know, there are managed property funds available returning good cashflow and gains that are a much more liquid investment.
I am very interested in purchasing this property; a deposit of 10 to 20k still seems quite within the bounds of reason to me, anymore doesn’t really add up.
I would like to persue your proposal further, at your convenience. The only restriction is proof of finance is required by the 1st of Feb.
If this doesn’t work and an equity partner doesn’t appear, perhaps I could ask someone for a finders fee, as a last resort.
‘Who owns the gold makes the rules’
This seems to be my lesson in banking so far.
Look forward to your response.
Regards,
blah
Perhaps this excerpt taken from an email from my accountant’s mortgage broker will shed some light on the situation:
‘The finance we considered for you had to be under a “lo doc” scenario, as
you did not have two years full personal and company taxation returns. The
major stumbling block was the “mortgage insurer” would not recognise the
town as “suitable under their guidelines” and the postcode was
not listed on their approval sheet. My understanding why this town would not
be acceptable is it is located in rural area ( allowing for the property
being residential) and population under 10,000 people.I have contacted other’s in my finance network, who might consider doing the
loan at a business loan rate which would be higher than normal housing.
Unfortunately they weren’t able to assist, primarily due to location and
population of the town. Another consideration is the present balance sheet
commitment due to the ATO, and the repayment program.So in summary, I would contact the agent you have signed this contract with
and confirm you cant get finance for the property and release your
contractual commitment.’There you go.
I really think this property is a unique find, an equity partner would be the way to go for both of us, I believe.
Cheers,
Ivan
Thanks guys,
There is no problem with putting down a decent deposit, it’s the fact that I am self employed and cannot produce the required financials. Am currently speaking with a branch of my bank located in this town, hoping for a more desirable result.
Unfortunately as the banks don’t want to speak to me at this stage, I think my best option would be to find an equity partner, if possible.
Does anybody know how I may go about achieving this?
Thanks,
Ivan
blah
