Forum Replies Created
Scott,
How is Mt. Isa for property – houses and units, returns etc?
Cheers
Mark[
]Steve,
The Bank of Queensland would do 80% but there were some conditions – that was about three months ago. We didn’t quite have enough for 20% deposit at the time so didn’t pursue it any further. It was a real shame because the 9 units yielded about 14% gross and I was able to put $800 positive cash flow in the pocket a month.
No doc loans may be worth investigating?
Cheers
Mark SprengerSteve,
I notice that settlement is not until October this year. That’s at least a six month contract. How were you able to negotiate such a long contract and why did you?
I understand that with more than 4 units financial institutions regard that as a commercial proposition and therefore will not lend finance in the form of an investment property loan. My enquiries so far have revealed that the maximum LVR is 80%. Do you know of lenders who will lend on 90% LVR?
Cheers
MarkI agree Robert. It does put a dint in the old Cash on cash return, initially. However, if one can find people who have most of the deposit when you buy, are prevented by banks from gaining finance, and are a good risk for you it may be good to do the deal.
Cheers
MarkAndrew, thanks for your post. Where was the Break Free Events seminar held and what was it about? I’ve had a look at the website you nominated. It looks good. Just waiting back on my email I sent her.
Cheers
MarkRobert,
I haven’t wrapped yet, but am about to. My research located a practice direction under the hand of the Office of State Revenue, Qld. Govt. (www.osr.qld.gov.au). It related to the applicability of the FHOG and instalment contracts. It, essentially, states that the contract must have been on foot for a year; either $7,000 or 10% of the purchase price (whichever is the greater) must have been paid off; the purchaser must still be residing in the property as the principle place of residence; and the purchaser is not in default under the contract which would entitle the vendor to cancel the contract, before the grant is paid. Interest and deposit and any extra amounts can be considered when calculating the amount that has been paid off the purchase price.
The website has the form for application to receive the FHOG. On it there is provision for it to be paid to a party other than the applicants.
Cheers. I hope this helps.
Mark Sprenger
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