Hi Richard,

Wilko mentioned above of a product that can provide 100% financing with a secured and unsecured component. Do you still have such product and if yes, could you please let me know the criteria. Thanks.

Jenny

Another fact that I thought 95%LVR wouldn't work was because even though I was planning to live in it at first, but I may soon later rent out part of the property (the property has a bungalow at the back with full utilities, but not separately metered.  Once I have put in separate meter boxes, there is a high chance that I will rent out part of…[Read more]

Thanks, Richard & Wilko,

I don't know the vendor or the agent.  The contract would definitely be conducted in a business manner; i.e.: not an under-the-table contract.  The property is in a semi-regional area and has been on the market for some time. The agent said the vendors are willing for a long settlement because they currently have a good…[Read more]

Thanks, Richard & Tom.

I was planning for 10% deposit so to negate the 5% genuine saving requirements. But you mentioned, Richard, that "There might be a couple of ways around this if you can save at least 5% deposit over a minimum of 3 months depending on which State….'  Could you please elaborate on what other ways around if I could save at…[Read more]

Thanks, Tom – your explanation has cleared the clouds.

Thanks, All.
Pretty informative stuff. One thing I still don't understand – What is the LOC for when the Visa card seems suffice (other than for the purpose of keeping the Visa opened, as per Grant's explanation)? I mean if the main home loan amount was not sufficient, why not include the LOC with the main home loan in order to get the cheaper…[Read more]

Thanks, Grant.  I don't remember whether it was Homeloans or another broking house, but I was told that the 5% MUST come from genuine savings (i.e.: no exemption).  Does Homeloans require 5% in genuine saving?

Hi Shahin, what did you mean by 'OP' when you said: "The danger with this deal is that a) you are paying a premium on the interest and b)…[Read more]

another bank I was told was Bendigo and that the $20K visa usage would not be accessible until about 2 weeks 'after' settlement, which was no use to me, as I would have to borrow elsewhere for the amount for this period in order to pay for the stamp duty costs 'at' settlement.

Hi. 
Could someone please let me know which lenders offer a visa with 20K limit to cover for purchase costs, yet the limit is not included in the LVR calculation? And what the criteria would be? Is genuine savings is required and spread over what period? Thanks.

Regards,
Jenny111 

Thanks, Terry.

Who regulates the Vendor Finance market?  I meant in the case of one vendor quoted the interest rate close to 7%, but I calculated it to be almost 10% (9.90% to be exact). This is on top of the quoted price of the property which was probably around 15% to 18% above its true value. Is there any regulatory body to ensure integrity in the…[Read more]

Thanks a lot for the info, Paul.
Regards,
Jenny

Hi Richard, I am looking to 'buy', not sell.

Hi Everyone,

what is the going vendor-finance interest rate for P&I? Does the purchaser pay the stamp duty, transfer of land etc…during the rent-to-own period? How long is the rent period usually? Can the purchaser onsell the property during the rent-to-own period? is the property price negotiable? Can the vendor alter the repayment term at any…[Read more]

Kevin, and you don't have any lengthy vacancy when you advertised for tenants? I see alot of homes there are for 'first home buyers', are these properties new (or nearly new), do you know?  These properties seem to be ok; they don't look too old.
And did you manage to get 80% LVR on these properties? I am hearing that small town like this, banks…[Read more]

Hi Kevin,
which rural towns in SA do you have properties in and are they rented ok – I mean you don't have any long vacancy problem?

I remember reading in the Australian property magazine, which said that SA in general currently has a huge oversupply of housing stocks. In fact so huge that all housing construction could stop for 5 consecutive…[Read more]

Hi Jamie (and Richard)
I have no doubt of Richard's experience and would love to make the contact when the right time comes (probably in 12 to 18  months time when hopefully I have accumulated a decent deposit savings…) Honestly, at the moment, my savings is almost non-existent.  Would prefer a standard loan and no mortgage insurance though.…[Read more]

That makes sense now. Thanks Shahin & Richard.

Thanks, Everyone.
The BAS statements don't really reveal whether the borrower is a trustee or a guarantor. Do lenders take into account of the borrower who happens to also be a guarantor or a borrowing trustee of another entity (let say a company or family trust) when they assess Lo Doc?  Would the answer be the same as for standard loan?

I mean…[Read more]

Thanks.  I am learning everday.