Welcome to the forum []

I may be able to help you out – where do you live? Commercial is a bit specialised and outside my area but I know some very good brokers who specialise in this type of lend.

I think if your property is metro-based and as you say the new lease is in place, an 80% lend isn’t out of the question as most commercial lending…[Read more]

Howdy,

That does not sound right – made some prelim enquiries and was told that really the only reason for this restriction would be location – if you don’t mind me asking, what is the postcode of the property.

Cheers,
Mel
melanie@homeloanconnexion.com.au

Hi Kingsdown – great deal!! []

I’d recommend seeing a broker who can shop around for you as you have a fairly unique income/structure set up which will require some tweaking to get through and with a good deposit it may actually be worth going low doc – about 40-50% of them will do construction but as picja says location may be a concern.

Let me…[Read more]

Hi folks,

This one can be really tough and the lenders keep changing their minds so I’d always recommend getting a broker to make sure you get the best deal. With genuine savings (eg money in the bank or shares you sell or equity in property you’ve had for more than 6 mths) you should be able to get loans up to 95% with lenders familiar with the…[Read more]

Welcome []

I have never done a flip but I understand that in Qld it is possible to have a contract with buyer 2 to pay vendor 1 on settlement, meaning you don’t pay a penny and it’s just a paper transaction that the CoT went into your name on it’s way to buyer 2 – a conveyancing firm is probably the best place to ask. In Qld you as buyer 1 do…[Read more]

Hi folks,

A word of warning from a brokers point of view – these are not ‘normal’ properties hence not subject to the ‘normal’ lending levels. At best on the 45sqm unit you would be able to get an 80% lend from the likes of Rams, maybe 85% from Adelaide bank but under 40sqm I don’t know anyone who’ll touch it, sorry.

Another thing is that often…[Read more]

Welcome aboard []

Hmm, yes, food for much debate. The short answer is that it’s a risk minimisation strategy that ensures that in years to come you are more insulated against events like extended vacancy and inc. interest rates. Also below 80% LVR you avoid lenders mortgage insurance which is significant and ‘lost money’.

There are plenty of…[Read more]

Interesting article, thanks, and another reason people should educate themselves about the strategy behind the property investing decisions they are making and not just following the Jones’ so to speak – Steve’s tip for today is rather apt I think!

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Mel
melanie@homeloanconnexion.com.au

Howdy,

Looks good on return but just beware that from lender’s point of view if units are too small (45 sqm livable floor space minimum) or in regional area you may be looking at tipping in up to 50%.

Sounds worthwhile trying though!

[]
Mel

Hi folks,

Thanks for the tip Mortgage Hunter – haven’t been online for two days, was in Melbourne listening to a developer Peter Comben, who’s a friend of Steve’s, and was totally inspired AND am thoroughly delighted that the Lions get another opportunity for glory!! []

Slow Boy I’d be more than happy to have a chat about your plans and see…[Read more]

Hi Peter []

As you no doubt know lenders are a bit shy of low/no income situations but if you hook up with a good broker and aim at positive cash flow properties you could actually do quite a bit with your available equity, cross-collateralising the security against your home. Lenders will take 80% of the rental towards servicing the loan so…[Read more]

Hi Chezzamum,

Unfortunately yes being without any income is a bit limiting. Have you thought about selling your house and renting it back for a fixed period eg 2 years?

I’d run it by a broker to see what they can come up with for you – probably cross-collateralising on your current residence would be the way to…[Read more]

[] Thank you!

Looks good – just rolled off my printer! Just a note though the View online option didn’t work for me – may be gremlins in my laptop, not sure.

[]
Mel

Hi Aaron,

Aussie started a bit of a revolution 7+ years back with cheaper loan rates and fortunately/ unfortunately the big banks and other lenders worked out they could match him (and his backers) hence we all enjoy very good rates now leaving Aussie without an edge in the market.

They appear to be trying to compensate for this by establishing…[Read more]

Yep, they’ll can it AND won’t help you getting a loan with the same lender the next time. Luckily there are lots & lots of lenders.

[]
Mel
melanie@homeloanconnexion.com.au

Hi Matt,

Providing you are finding strong property deals you should be able to get finance as an asset lend – but we are talking about 70% borrowings so your $20,000 deposit (providing you’ve got other $$ to cover costs) equates to a $66,000 property. If it’s rental return is strong enough you may be able to get the ratio up to 80% – ie a $100K…[Read more]

Hi Alex,

If you have approx $20K in spare savings to put towards a deposit, leaving about $9K for costs and contingencies, then a $250K loan looks like this:

Deposit – $20K = 8%
Loan – $230K
Repayments I/O at 6% = $13,800pa = $1,150/mth
Repayments P&I at 6% = $16,550pa = $1,380/mth

This is a big ask on a single $35K income and hence without…[Read more]

When is the Brisbane seminar happening?

Mel

Hi Alex,

I’m a bit confused – what are you paying $800 of Monthly Repays towards that will stop when you leave work?

Generally, the less income you have the harder it can be towards a new loan, however if you do start a new permanent job before applying for your loan next year in a similar profession with no probation period and minimal break…[Read more]

We are also in Qld and specified it in our 60 day settlement contract that after finances went unconditional we had access to the property to do ‘minor repairs and improvements’ – the vendor agreed as the place had been empty for over a month and yet the real estate agent still went a bit nutty every time we tried to do something – sometimes it’s…[Read more]