Forum Replies Created
Hi Henry
I'm not quite following the question.
Are you using these JDL guys to help you find property and also to organise finance and they're capitalising their fee onto your loan?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Anthony from Australian Legal and Finance who posts on here will probably know of one. Adelaide is his stomping ground.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Miike
Best to wait until it turns into an IP as you can't depreciate whilst it's a PPOR.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Henry
An article was written by Medine Simmons on this exact question in a recent edition of Your Mortgage magazine. I've pasted it below.
She offers the following five arguments as to why every borrower should seek out a qualified mortgage broker when trying to obtain property finance:
1. Choice
“The biggest advantage of a broker over a bank is choice,” she says. “When you sit in front of a broker you are sitting in front of 10+ banks and 50+ products versus visiting a banker who has access to only one bank’s products. This is especially important at time like now, when the banks are saying ‘no’ more, and by having more choices you’re likely to get a ‘yes’.”
2. Experience
Ask your lending manager how long they’ve been helping people with home loans, Simmons suggests. “Brokers often own their own businesses and are committed to their clients in the long term, with many years of industry experience,” she says. “Banks are big companies; they move their staff around and reward good performers with promotions away from their customers.”
3. Specialisation
If you’re looking for specialised assistance with your loan, it pays to talk to a specialised broker. “For example if you’re starting property investing, look for a broker who specialises in property investors. Bank staff often don’t have the training or experience in one area, but service whoever happens to walk in to the branch,” Simmons says.
4. Follow Up
Following up the progress of your loan application is time consuming and frustrating. A good mortgage broker will have a system for chasing you up, keeping you informed and saving you time.
5. Personal Banker
Your mortgage broker is “like the perfect personal banker,” Simmons says. “They know what needs to be done, they make sure it happens and because it’s their own business, they’re in for the long haul. Bank staff change often so even when you find a good personal banker they change jobs before you know it.”
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Catalyst wrote:Sometimes everything is not stated in the advertising. Better to be on the ground.One I was not going to look at as it didn't seem like something I was looking for as the ad said very little and photos were bad.
That's a good point. With the first property we purchased, the selling agent only advertised one poor external shot of the property and provided the wrong date for the open house! We managed to inspect the property the day after and the photos/description simply didn't do it justice. We got a pretty good deal.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi ABCD
Check out the genworth location guide – http://www.genworth.com.au/lender-resource-centre/tools-and-resources/location-guide-australia/
This will give you an idea of the LVR banks will go to for particular postcodes.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Also, you might find these links helpful during your search http://www.passgo.com.au/property-data-websites
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Ben
Welcome to the forum.
The majority of properties would end up on these websites. The few properties that don’t are generally snapped up by investors/buyers agents who have built rapport with local REAs who have stock that they’ve been instructed to sell quickly for whatever reason.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I don’t think RP data would be fond of the idea of on selling reports….
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi batgirl
You could top-up your current loan to 90% and access about $28k to put towards your next purchase. Some LMI will be payable but at least you avoid using your own cash and the total borrowings would be deductible.
Hope that helps
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yep, it's a great read. It's good to see the tables showing the current state of each capital city and regional market back in this month.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
racmike wrote:Thanks for the quick response – That was really helpful.See spreadsheet below to know how I came up with the $450 per fortnight amount
I used http://www.allhomes.com.au/ah/act/sale-residential/11-revell-close-gordon-canberra/1316797481111 as the basis for my calculation (i.e, Property worth $400K fetching $400 rent per week).
Ah, this is just down the road from me
I haven't looked closely at the numbers but I wouldn't be surprised if the holding costs were about that.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
racmike wrote:Hey guys,I am interested in purchasing my first investment property and I have few questions.
1. My PPOR is worth $415K now (property was worth $370K when I bought it 10 months ago). I took a mortgage loan for $295K – I have paid $45K in extra repayments so far.
In essence, I have $160K in equity and I am currently able to make $3000-$3500 every month as extra repayments towards my PPOR loan. Worst case scenario – I can still make $2000 as extra repayments per month.
So, based on the above, should I go for an IP worth $400-450K right away or should I wait another year or so to build up more equity? I am concerned because I do not have any extra cash besides the $45K extra repayment in the PPOR offest account. So I would be borrowing (100% of the IP value + solicitor fees + insurance + stamp duty).
Hi Mike,
Whether or not you purchase the next property is your decision. However, based on the numbers above, you should be able to tap into enough equity to purchase your next property and not have to dip into the cash in the offset. Some LMI will probably be payable (which can be added to the loan so you don't have to fork out for it).
racmike wrote:2. I currently have an offset account with my PPOR loan. A mortgage broker suggested that I should go for a LOC for my IP.Based on my calculations, I would be paying $450 per fortnight as out of pocket expenses towards my IP. This has taken into account the rental income, property management, other fees and the tax benefits into consideration. So, this is where I am confused. I don't understand how LOC exactly works. Is the LOC issued for the $160K equity or for the $400K (value of the IP)?
Would I be paying the $450/fortnight from the LOC -or- would I be paying the $450/fortnight from the offset account of my PPOR?
I'm not sure which lender your currently with but you might not need a LOC. The simple, ideal set-up would be to have two loans against your PPOR.
Loan 1: Current loan – interest only with an offset attached
Loan 2: Interest only – being used as the deposit/purchasing costs for your IPYou would then either use the same lender (or another) for Loan 3 which will be the remaining portion for the investment property.
racmike wrote:3. My aim is to pay off the PPOR mortgage loan within the next 5 years and go for a bigger house. I would like to make the bigger house my PPOR and make my current property an IP (eventually). The mortgage broker advised that if I do this, I would be paying more tax and to get around this, I need to transfer the property to my wife's name (she is on low income). This makes sense, but are there any legal issues associated with this?Regards
Mike
OK, then convert the current loan to IO now (with the offset attached) – this will ensure you don't pay down more of the principle (as this loan will later be converted into a deductible debt). Instead of paying money off the principle, you simply place it in the offset and withdraw it later when and put it in an offset attached to your new PPOR.
You could also look at transferring ownership to a spouse but there's usually costs involved – best to speak with an accountant about that.
Hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Wonderwoman
Prob best to contact Paul Dobson above – he's the expert on vendor finance.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jameswood wrote:Great thanks again guys for the helpful information. Will definately be in touch with you again aswell Jamie soon once I have a few more things sorted out deposit wiseNo worries James – I'm not going anywhere….although the South Pacific would be nice right about now
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi John
I'd also place a deadline on the offer – ie. offer valid until close of business Tuesday 9th of August 2011.
Not sure if I'd mention offers on other properties – you may lose some credibility and be viewed as a tyre kicker.
Due diligence is an extremely broad concept and I'd be inclined to leave that out for the same reason above.
The finance/building inspection clauses will give you time to carry out more DD.
Hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
For a mortgage broker I'd suggest Richard who's responded to your post – he's a bit further north of Sydney but that shouldn't be a factor (unless you prefer the face to face contact).
Terryw is your legal man (has a million posts on this forum). I'm not sure how he operates or what he specialises in but he certainly knows his stuff when it comes to property.
As for the accountant, I don't know of any I could recommend in Syd.
Hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yep, you can.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Sonya
There are so many variables that depend on whether a loan will get across the line. Type of security, location of security, employment history, whether or not you're an existing customer….there are so many other factors to consider.
However, in general, I believe things are getting a little easier.
That said though, a 95% loan will always be scrutinised a lot more heavier than say a 90% lend.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Abhi
No worries – you're welcome.
Providing your current income and liability situation allows for it – I'd say it was certainly possible to keep your current property as an IP, access some equity, and purchase your next.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]