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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of jabjam2004jabjam2004
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    @jabjam2004
    Join Date: 2004
    Post Count: 22
    November 1, 2006 - 3:43 pm

    Hi Richard

    Thanks for your input to my query on Property Investing Forum. You said that normally you would get a first mortgage with a bank an dthen the second with the vendor which I understand is the norm. However, I’m wondering if it’s possible to do it the other way around.

    ie I buy the property with my LOC, obtain possession of the property with the vendor’s mortgage in place, then go to the bank and refinance the entire amount of the property?

    thanks
    Jennifer

    Profile photo of jabjam2004jabjam2004
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    October 30, 2006 - 1:27 pm

    Hi Terry

    Is it possible. in the first place, for me to get a loan from a bank for a property already encumbered with a mortgage (ie that of the vendor). Is this case the bank would be second in line?

    Thanks
    Jennifer

    Profile photo of jabjam2004jabjam2004
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    June 2, 2005 - 10:11 am

    Thanks for the feedback

    I called the potential wrappee with your suggestions and he has since had some success with purchasing the house with his solcititor’s assistance. Not sure if it’s the same solicitor that obstensibly checked the ‘purcahse’ documents to start with.

    Though I’ll get nothing out of it, I felt for the goodwill of the industry to pass on the advice. He told his solictor what I am doing and the solicitor said that would have been fine but his contract with Home Express was not a fair one.

    Anyway, this client’s on his way and I’m still hoping for my buyer.

    Thanks for the responses
    Jennifer

    Profile photo of jabjam2004jabjam2004
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    December 1, 2004 - 8:47 am

    Thanks Terry
    I’ve since learned the same when I ventured to buy at lease hold property for a client.

    So, am still trying.

    Jen

    Profile photo of jabjam2004jabjam2004
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    November 25, 2004 - 2:46 am

    My solicitor told me by having the wrappee sign a contract obliging the wrappee to buy the house under said conditions, there will only be one stamp duty to pay. In fact, the solicitor emphasised that this procedure would avoid messiness re stamp duty as opposed to ‘signing over’ the purchase using the nominee part of the purchase contract.

    Any thought about mortgage insurance please?

    Ta, Jen

    Profile photo of jabjam2004jabjam2004
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    November 9, 2004 - 1:50 pm

    Hi Delboy

    I am able to pass on to you the names of two solicitors in Brisbane who I am told by a very reputable solicitor from NSW, are experienced in vendor finance. I will contact them when I am finally in a position to wrap. They are:
    >
    > 1. David Barlow
    >
    > Bennett & Philp Solicitors
    > Level 16, 15 Adelaide St
    > BRISBANE Queensland 4000
    > Ph: 07 3229 0494
    > Fax: 07 3229 1521
    >
    > URL: http://www.bennett-philp.com.au
    >
    >
    > 2. John Hodkinson
    >
    > Deacons
    > level 20, 123 Eagle street
    > BRISBANE Q.L.D. 4001
    > Ph: 07 33090820
    > Fax: 07 33090999

    Hope they are helpful (for me too)

    Jen

    Profile photo of jabjam2004jabjam2004
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    November 9, 2004 - 1:36 pm

    Thanks for everyone’s comments. Nerves of steel huh?

    I’m just thinking of how to mitigate this risk. What does everyone think of my establishing a short term loan, say 10 years, during which time I would guess the mum may die and her and her carers pensions would go too. At least the principle would be more significantly reduced and I could ‘refinance’ them on their new circumstances. Of course if there’s such a circumstance too soon after the wrap, there won’t be much principle gone … maybe I need to talk to the mum’s doctor!!!!:)

    Best to all and thanks
    Jen

    Profile photo of jabjam2004jabjam2004
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    Post Count: 22
    May 4, 2004 - 7:06 am

    Hi CRJ – Thnaks for the reply. Yes, the rent figure does include GST. Like you, i thought the deposit I’m not paying out should not me included in the calculations for CoCR, but Kiwi-Fulla disagrees so I’m still not too sure.

    Hi RussH – Thanks for your reply. My circumstances are such that my bank will lend me 100% of the purchase price and the 5% closing costs but it is fully secured against my private home.

    Hi Kiwi-Fulla Thanks for your reply. The loan I can get has an offset account and I can access and put the 35% into it. This reduces my interest payments and affords me tax advantages on that 35% cause I no longer pay tax on the funds I could have earnt with it (like 4% from a savings account versus saving 7.5% in interest payments on the 35%).

    Whether i use my offset facility or not, I’m not spending the 35% on the investment cause that money is still available to me (I can withdraw the 35% from the offset and pay the interst on that 35%).

    The CoCR certai nly plummets when 30% deposit is part of the calculation. But I’m not spending that 30% ???? Still wondering …

    Finally, could you please expand on your suggestion to ask the vendor to leave 30% in the deal.

    Thanks once more to all
    Novice

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