Suss out the favorable purchase option.

I recently done this for a forum client and was able to tap into a fair bit of extra equity for them as the lender went off the valuation rather than the purchase price.

Cheers

Jamie

Hi CS

It's not uncommon for off the plan property timeframes to change.

It sounds harsh but the REA has locked you into the deal and sounds like he's no longer treating you as a priority. I bet he/she would have been a lot more prompt with returing your calls before you exchanged contracts on the property!

Cheers

Jamie

Hi SC

Without knowing too much of your details – and based on the limited info available I'd probably look to tap into the equity against the PPOR – set it up as a second split to cover the deposit/costs on the next IP. I'd then set up a separate, stand alone loan to cover the remaining balance of the IP.

All in all, your equity position is good – it's just a matter of assessing your borrowing capacity amongst a few other things to work out the best option.

Cheers

Jamie

Ahhh geeze. I had a cracker of a day last week.

Credit told me that a certain scenario was doable – "yeah, no worries. It's a deal – not a problem. Put it up." So I submit the deal – get a call from the assessor two days later – "sorry, we can't approve it – it doesn't meet our policy." So after a day of politely explaining the structure/scenario and the advice already provided by credit – they overturned their decision and granted formal approval…..so all in all, I gained a couple of premature grey hairs for nothing

Cheers

Jamie

I have to knock back business all the time. If it can't be done or the client can't afford it – I tell them so and provide them with some pointers on how to improve their situation to place themselves in a position whereby they can obtain finance down the track. 

I get your point though – and I'm sure there are some brokers that will get it done by any means necessary. Even if it's not in the best interest of the borrower.

Cheers

Jamie

Hi Jimmy

What sort of independent financial advice are we talking about?

Cheers

Jamie

Hi Samantha

Sounds like you're having problems with your borrowing capacity.

If you're self employed there's certain add-backs that you might be able to use to enhance your borrowing power – such as depreciation, interest repayments, additional super, etc.

Have you spoken with a decent broker about your situation? 

Cheers

Jamie

Hi Neil

As has been mentioned above – you could put your own name on the application but you'll have to declare that your married with two dependents and that your wife is reliant on your income.  Therefore, having just you on the application won't make a different to servicing.

Cheers

Jamie

Hi Simon

Welcome aboard

1. It's incorrect. Purchasing a different entity isn't going to improve your borrowing capacity.

2. As above – it doesn't work like that. However, purchasing in your own names doesn't mean you've shot yourself in the foot at all – it's how the vast majority of investors purchase their properties.

Cheers

Jamie

Hi Fredo

If you can stick with the same lender it should be possible – avoiding LMI that is. You'll need to contact them (or your broker) to suss out.

Cheers

Jamie