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  • Profile photo of jsawtelljsawtell
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    August 15, 2010 - 1:33 am

    Hi kelko

    I had no issue and not aware bank was notified of 2nd mortgage on first property as per my original post. Mine was a short term solution while we sold the first property, which we have now done and the 2nd mortgage (and first mortgage) is now cleared as equity from first property was released in sale.

    Regards
    Jason

    Profile photo of jsawtelljsawtell
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    April 18, 2010 - 5:01 am

    Hi Richard,

    Are banks willing to consider servicability based on 1 years return? Previous year was hit hard by stock losses.

    Regards
    Jason

    Profile photo of jsawtelljsawtell
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    April 16, 2010 - 11:15 pm

    Hi, this is interesting as we are about to go through same process. It is becoming more common that people are finishing their houses outside of the building contract. Our Builder sales consultant even told us that we should do the Drive and a few other things ourselves as the builders price would be excessive (obviously sub contract work out + healthy margin). Some of the floor finishings we can get the top of the line for the same as builders entry level product price. As for the value, this should be common sense, but as mentioned in previous post, banks are looking for the lower value to cover themselves.

    We were also told that we needed to provide firm quotes for approval. I believe that this would be to ensure the money is being spent where you say it is, and not pocketed or spent on consumables. Like us, that is not the case, and would be nice to have some control over this. We have struggled to get a written quote for the driveway. The contractors I have spoken to don’t want to quote as they see it is a waste as the project is in 4-6 months when house is built, even after assuring them I would pay deposit and lock them in now.

    Good luck with it all

    Profile photo of jsawtelljsawtell
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    January 13, 2010 - 9:54 am

    Thanks guys.  PS, information I provided was limited so I can see your assumption.  But it is not a 95% lend. 

    Richard,
    Is there official information readily available stating that there is no longer a requirement for consent that you could point me in the direction of?

    Thanks
    Jason

    Profile photo of jsawtelljsawtell
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    January 13, 2010 - 6:03 am

    Thanks Richard.

    I am in QLD, so that sounds good.  I will follow up with my solicitor.  Is that information detailed somewhere?  Just in case they are not aware of it and I can reference it?

    Banks – numbers were tight.  Any extra coming out of first property was attracting high LMI fees.

    Qlds007 wrote:
    Hi Jason

    It all depends on the State and the regulation within that State.
     
    For example in Qld up until recently you need 1st mortgagee consent to register a 2nd mortgage but those days have now gone and no consent is required.

    No other way as 2nd mortgagee is going to want some security.

    I assume you cant borrow it from your current lender ?

    Profile photo of jsawtelljsawtell
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    September 24, 2009 - 2:47 am

    Hi Richard,

    Is it possible to buy a house/property jointly with SMSF (personally + SMSF) with a loan/mortgage?  In theory this is using the SMSF funds as cash for deposit.  Rental returns would be paid according to ownership % – where SMSF % would equal deposit as % of total purchase price.

    Thanks
    Jason

    Qlds007 wrote:
    Hi Robin

    Quick answer

    Is this possible? Yes it is under a SMSF

    Approx what are the set up fees for the SMSF? All depends on your Accountant but a Deed can be set up for around $1500 max.

    Approx what annual accounting fees? All depend on how complicated the transactions within the fund are and how much time your Accoutnant spends on the return. A SMSF needs to be Audited each year and there are few other ASIC requirements and levies. Allow $2500 / annum max.

    How would I get started? Get your Accountant to form a Trust Deed, open the Bank Account and Transfer your existing funds proceeds to the SMSF.

    Would i need to pay stamp duty? Buying in a SMSF is like any commercial transaction so YES you will need to pay stamp duty on the land. Remember you are unable to gear on a vacant block of land in Super and cannot borrow to build so need to think carefully about what you do.

    Profile photo of jsawtelljsawtell
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    March 12, 2009 - 10:14 pm

    Thanks Richard.

    Could I provide some security to the Vendor by offering a 2nd mortgage on my current property?  If so how would I show how much equity could be scured in 2nd mortgage?

    I appreciate your help.  If you see a way that I could obtain finance, then I would be more than happy to get this finance through yourself.

    Thanks
    Jason

    Profile photo of jsawtelljsawtell
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    March 12, 2009 - 11:41 am

    Thanks guys,

    Will banks touch any 2nd mortgate option, eg 10%

    Profile photo of jsawtelljsawtell
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    March 3, 2009 - 12:06 pm

    We can never know the exact reason why people sit on prices which we think are higher than the current market.  But could be the vendor needs close to the asking price to pay out finance.

    From a vendor perspective, there is a reason why they use offers over xxxxx as they want over this amount.  The real estate person adds to the mix by using their sales skills – good or bad.

    Would be interested in hering from some seasoned investors around rules (rule of thumb)/methods for submitting offers..

    Profile photo of jsawtelljsawtell
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    February 25, 2009 - 1:26 pm
    Qlds007 wrote:
    I personally would be recommending an interest only loan with a 100% offset account.

    Look to maximise your borrowing, take the mortgage insurance on the chin (as it wlll be propertionally Tax deductible when the property becomes a rental property) and look for a flexible loan product that can grow with you.

    Hi Richard,

    When can you claim the Mortgage insurance – first year as an IP, or is this capitalised for when you sell? 
    Thanks Jason

    Profile photo of jsawtelljsawtell
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    February 19, 2009 - 7:03 am

    I wonder if I could claim the flights and accomodation on tax as a property investor attending a conference?? 

    Would not mind a holiday in Vegas.  Pity it starts today.

    Profile photo of jsawtelljsawtell
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    February 12, 2009 - 5:39 am
    Qlds007 wrote:

    Regretfully Yes you are dreaming.

    Why dont you use some of the equity in the 2 properties.  100K would go a long way to providing a deposit or two.

    Thanks Richard.

    Currently I have
    SGB – Loan $415k, value $470
    NAB – Loan $515k value $600

    Would a bank look at this equity?

    Thanks
    Jason

    Profile photo of jsawtelljsawtell
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    February 12, 2009 - 5:28 am
    Terryw wrote:
    Hi

    don't  think you will find anyone. with no security, it is extremely risky for the lender – what if you refused to repay?

    maybe you could look at vendor finance – where the seller can lend u the deposit.

    Thanks Terry, this is definately an idea.  Just need to find the right seller who has the cash/equity in the property plus a real estate agent who is willing to think outside the square.  I think it may also reduce the negotiation on price that can be done.  I just want it all ;-).
    Any advice on how to approach Agents and owners for vendor finance would be apprecaited.  I also have access to RPData if you think it may be an advantage to go directly to owner.

    Thanks
    Jason

    Profile photo of jsawtelljsawtell
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    February 2, 2009 - 2:54 pm

    I agree with Richard.

    SGB are very hard to deal with, especially if you want a 90%+ loan.  When we bought 2nd property, SGB said it would be no problems, and had pre-approval.  Then after signing contract they rejected me.  I am told it was their Mortgage insurer.  I ended up with a NAB loan, very few questions asked and papers with 5 days.

    Profile photo of jsawtelljsawtell
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    January 24, 2009 - 11:20 pm

    Hi,

    we have a 100% loan with SGB on our first property (bought 4+ years ago).  I think the variable is .5 high than standard.  Best if you give them a call to confirm.

    Profile photo of jsawtelljsawtell
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    January 19, 2009 - 10:07 pm

    I believe in QLD it is the duty of the Real Estate to inform you of any issues with the property if he is aware.

    At the end of the day, it is not important why the seller is selling, as the real estate agent could of told you anything.  You need to do your own due diligence.  Get inspections, speak to neighboors etc.

    Profile photo of jsawtelljsawtell
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    December 30, 2008 - 11:30 am
    Terryw wrote:
    Hi

    You can't rent your own property, but you could rent one owned by a company or a trust that you control or a husband could rent off the wife and vice versa – or another relative. Many many things to consider though.

    Hi Terry,

    This sounds very interesting.  Where can I find more information on this?  Eg. if I own a property 100% in my name, can I rent it to my wife? 

    Thanks
    Jason

    Profile photo of jsawtelljsawtell
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    November 22, 2008 - 11:50 pm

    Hi,

    I was searching threads, some great infor here, thanks.

    Question.
    Currently there are some great buys on the Market (looking at Gold Coast).  As an investor, is it wise to expand portfolio by using Wraps/Vendor finance to build portfolio?  I am currently in position where primary income (self employed/contract IT Project Manager) cash flow has increased significantly, but recently changed business structure to a Trust and with no deposit available.
    2nd Question, as Company is setup as trust and has minimal liability/risk, could the trust purchase the Vendor financed property?  This would provide greater cash flow, but not sure implications now and future.

    Thanks in advance for any replies

    Profile photo of jsawtelljsawtell
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    February 25, 2008 - 12:45 pm

    Kylie,

    Well done on your achievements.  If you decide you would like to extend to pass your hand at mentoring, I would love to catch up for a coffee to hear about your strategies.

    Jason
    0402 896772

    Profile photo of jsawtelljsawtell
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    February 25, 2008 - 12:09 pm

    Well done blogs.  Take the money while you can.  I am sure you know this.  The market is volatile at the moment.  Having that sort of dollars wrapped up in one stock is dangerous and I am sure a lot of people have lost in the past 3 months.  There are some bargains to be had on the market at the moment.

    Continue with the good work.  Feel free to share any other stock info.

    Jas

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