Forum Replies Created
Hi as mentioned above the option of a development loan at 75% of the project end value could be beneficial. (lodoc)
You mentioned the end val of approx 500K, therefore 75% would be around $375K which would cover any unexpected or not calculated costs like strata titile costs etc.
You pay a slightly higher interest rate…
At the end of the project if you have trouble selling them and need to hold for an upturn in the market you could convert to a cash flow manager loan which would put them in a cashflow positive, at an 80% lodoc lend. ie: 80% $400K (approx $100 positive cashflow in the first year) However these cash flow loans to attract a DEF and capatilise some of the interest.
regards
kylieS
Mortgage Consultant
[email protected]Hi, its not easy to find a good broker.
It sounds like you are a property investor and therefore you need someone who understands where you are now and where you want to be to make sure it is all structured properly.
Ask them how many investment properties they have and how they structure their loans, this will give you insight into if they are a doer or a talker.
kind regards
KylieS
Mortgage Consultant & Property Investor
[email protected]Hi, merry xmas to all and a happy new year.
I have found the best thing is to ask your broker what loans to they have on their own investment properties? And what they consider as the most important features.
Everyones circumstances differ, however this will give you some insight into what a professional looks for??kind regards
kylie
Mortgage Consultant
[email protected]Hi, yes you should still be able to get a loan, you just need a resourceful broker or consultant.
Depending on what your needs are now and in the future will depend on the best option for you at this time.You mentioned you had some available equity in your own home, you could use this for your deposit amd costs (as this would probably be your cheaper interest rate if it was full doc) and then use a lodoc facility on your next purchase (some lodocs goto to 90-95%LVR) but the cheapest ones are around an 80% lend.
However it really depends on your current income and what you are hoping to achieve now and in the future to what will best suit your needs at this time.
Kind regards and best of luck
Kylie S
Mortgage Consultant
[email protected]
