Forum Replies Created
Hi Brahms,
As long as you ARE a first home buyer you shouldn’t have a problem… and do note you have to occupy the premises within 12 months.
The stamp duty exemption is to assist first home buyers getting into the market, but these days it is quite common for my first home buying clients to have the first home as an IP and stay at home or share accomodate.
Strange – but that is the battle the X Gens are facing…
They did do an audit on people taking advantage of the first home owners grant, they were asked to prove that they resided in the premises by showing a bill in their name sent to that postal address. I heard a rumour they are asking to see that your rates notice is sent there… bit of a grey area… be careful.
Liz Wilson
Mortgage Lender
Sonja,
In my experience most banks are firm with their policies, and once you give them the information they want they will make a decision based on that. Appealing to them with your own logic is not always effective, talk to a broker who knows how to think like a bank, but understand a client.
In general, if you don’t have a proven income to support the loan your chances may be slim… Are you self-employed? Perhaps a Lo Doc is the way to go?
However in saying that it really does depend on your situation, there are some banks that will look outside the square…
Try giving us a little bit more information on what your unique situation is, sometimes there are ways of approaching these things to fit in with the banks criterea.
PM me if you prefer
Liz Wilson
Mortgage Lender
6.47% at 60% lend is pretty competitive…
Liz Wilson
Mortgage Lender
I agree, for your average investor your at the mercy of the bank valuer’s valuation.
I will make a point here that I think is worthwhile for people to know, when I worked at the CBA, we were not allowed to disclose what the valuation was…. HOWEVER I was able to tell my client what 80% of the valuation was… and let them do the maths, this way they knew how much they could borrow before going into Mortgage Insured loans.
Theres a vast difference between lenders as to the process for questioning valuations, sometimes its so easy to get a better valuation by talking to the valuer straight, sometimes its a complete pain in the… but if the buyer really believes it is low, where there is a will there is a way.
Liz Wilson
Mortgage Lender
Hi Summo,
Can I suggest that for future protection I would talk to your home insurance provider about extra cover. I know that my insurance covers some things with tenants (and the bad things that can happen) and there may be a policy that suits this scenario. I wish I could rack my memory to when I knew more about it, but it is v. late!
Try calling the 13 no.s and ask about extra cover for investment property insurance, there are many different levels and types of course.
Hope this helps,
Lizzy
Liz Wilson
Mortgage Lender
Too wise you are, too wise you be, I see you are too wise for me[wink]
Liz Wilson
Mortgage Lender
Depending on the lender… sometimes wording maybe “completion within 8 months of settlement”.
In essence, be mindful to check any conditions.
Liz Wilson
Mortgage Lender
Here it is straight fromt he dogs mouth:
The land tax threshold of $317,000 is to be abolished. From January 1, all properties worth more than $25,000 will be taxed – although your principal residence will still be tax-free.
Replacing the current land tax rate of 1.7 per cent with tiered tax rates. These will be 0.4 per cent on land values up to $400,000, 0.6 per cent on the amount between $400,000 and $500,000, and 1.4 per cent on any excess over $500,000.
That should clear it up for you.
Liz Wilson
Mortgage Lender
Firstly you want to at the very least split the two loans into different accounts (one loan, two accounts) for tax purposes. Otherwise your accountant won’t like you very much. It also helps in that when you sell your first property, you can pay off the PPOR first, and leave any debt on your IP.
However, be careful in refinancing, about the terms of the loan, if you are going to pay off most of that loan in 1 year. Some banks will dock you a big fee if you pay off over a certain percentage of your loan within say 3 years (as an example).
Don’t be afraid to “split” because of costs, in most cases this shouldn’t cost you any extra. Make sure your lender/broker advises you of any costs involved in a split (i.e. extra monthly account fees or upfront cost per split).
Liz Wilson
Mortgage Lender
Myydral,
Just be careful when you get finance as with a land loan there may be a clause that you need to build within 6 months or 12 months or 24 months etc. If you do not build they can up the interest rate or take further action (they prefer not to).
Yes a similar deposit is required, you may be able to get 85%-90% lend depending on where the land is, what size it is.
Check these details with a broker before going ahead.
Liz Wilson
Mortgage Lender
The only instance where you should have one loan for both titles is to keep the total LVR under 80%. But for a refinance this is probably not relevant to you. Keep them seperate if you can… it saves time applying to the bank to have one of your titles discharged.. there are more benefits… keep it seperate. The banks probably want extra security, also they like to have your title in their hands so they can lure you back more readily.
P&I or IO is up to you and how you want to gear your investments. I do not offer advice here as I am not qualified, talk to an accountant about your immediate and future plans, it may also depend on the growth potential of the properties, what cash flow you want, and whether you want to use equity in them to invest in future.
Good luck and let me know if I can help.
Liz Wilson
Mortgage Lender
Hi Jo,
I’m not so convinced that the market is that dire… although I’d stay right out of most capital cities personally.
I can give you a contact for NZ investments, there is even a seminar on soon for some up and coming off the plan sales. I also have an excellent contact in Far North Queensland… my jaw drops at some of the deals I finance for clients up there. I.e. under 90K purchase with $150pw rental? Tell me can you argue with that??
Liz Wilson
Mortgage Lender
Hi Terry,
I will soon be helping Australian Investors purchase in NZ. I even know a real estate who is giving all expenses paid trips to NZ to see the properties.
I can help with finance, the process would be that you need to set up a bank account in NZ which would need to show the funds for the deposit (to prove you can settle). In general you would have a conveyancer in NZ who you might set up a power of attorney with so they can sign documents for you once the loan is approved.
If you want help with contacts feel free to email me.
I will also get that seminar date I think it is a free seminar – so would be useful for you to attend.
Cheers,
Liz Wilson
Mortgage Lender
Hi Jean,
Depends what you mean by structure?
You may want to split the loan into two sub-accounts for the purposes of keeping score of who pays what etc. Most banks split loans quite readily.
Is it a construction loan?
Could you be more specific?
[eh]
Liz Wilson
Mortgage Lender
Need we say more.
Liz Wilson
Mortgage Lender
Yes $1000 is actually not too bad.
Although your broker should always make you aware of these costs, even if it is in the fine print. An ethical broker should make the effort, especially considering your brother even mentioned a forseeable re-finance.
Liz Wilson
With the housing bubble deflating economists are predicting that the reserve bank may even cut the interest rate. So at the moment variable seems more attractive to me. In an unsure market it’s best to hedge your bets with a split loan 50% fixed 50% variable. Sometimes even the experts get it wrong.
Liz Wilson
