Forum Replies Created
They are basically lending on the asset.
They lend 65% of the total valuation which covers them if they need to sell the property to pay the debt.
These deals are there for a reason. They are not regulated by the UCCC and as such it is up to the borrower to make sure he is comfortable making the repayments. Rates are currently 6.85%.
If you have two rents paying one property then it might be feasible. Up to you totally and please don’t think I am trying to talk anyone into anything here. Just presenting options.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you haven’t lived in it the answer is yes.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Desk top,
If you know you can afford the repayments then you can easily get a loan to buy another property for about the same value without a job.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Q.How long would it take you to pay the property of after you have paid the first 5 years of interest when it reverts to P&i.(25 years)
Depends on the loan term you negotiated. If 30 years then an additional 25 years.
Q.Why would you refinance when you have paid the first 5 years in interest. For instance $1000 per month * 60 = $60,000.
Because you may get a better deal or you may wish to borrow additional funds for another project. There is no need to refinance if everything is great.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Perhaps he is overly focussed on the taxation implications.
If his views are contrary to yours then perhaps you need to speak to some more folks.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
When a developer markets land it is unable to be settled until each block has been registered by council. Buyers can reserve their blocks with a small deposit and then these confirmed pre sales will help with the funding for services as the lender will see that the project is a success.
This registration can be 6 months plus after the land is initially put on the market. By this time hopefully all the blocks are sold and blocks are being sold at a higher price.
Works great in a rising market and anytiome where there is a scarcity and demand for land.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Redwing,
Don’t be too blinkered. Some of my clients make great money by buying land on $1000 deposit and holding until registration then either selling or build and selling.
Doesn’t fit the pos cashflow accumulation model but it also works!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
He can approach me if he likes [biggrin]
Seriously I have a NODOC on my panel for a 65% lend.
There is a minimum loan size and we would need some more detail.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
When you buy a house for say $100 000 and pay a $10 000 deposit you need to pay the rest at settlement.
Now say the loan is $70 000, the legals are $2000 you will get a letter from your solicitor saying what you need to deposit to his account before settlement so he can make the transaction on your behalf. In this eg is it another $18 000. This is the “funds to complete”
Is this what you are after?
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
All that the others wrote is true Kay.
It is very much a personal choice. But remember the golden rule I mentioned above. Direct the principle of every IP loan to the PPOR if you have one.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
P&I is principle and interest. The payment you make is part interest and part principal. It means you are paying the loan down and will own the property after the loan term or quicker if you pay extra.
IO is interest only and means that for the first 5-10 years you are only paying the interst component. After that period the debt will remain the same.
They both have their place.
A basic rule is that as only the Interest component is tax deductible it makes sense to pay out any non deductible debt before making an IP P&I.
Make sense?
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I believe the structure is completely written off at 2.5% after 40 years.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Chan,
I would recommend Nick to you as well.
Say hello from Simon.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The major issue might be currency fluctuations making the loan greater than the property value, however it can also go the other way and the AUD and NZD are historically closely tied I have found.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Boardy.
If the overall equity position see the new borrowing at more than 80% you wont avoid LMI.
If there is sufficient growth in the IP you can draw more funds without LMI but you know this already.
Note be too worried about avoiding LMI, it is there to allow you to do exactly this. If the numbers aren’t too hign then it wont be too much. Some lenders even allow you to add it to the loan giving a potential borrowing of about 95%.
If you can provide some figures, either here or by email I can give you an idea of what you might incur.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Maybe a sign saying pull?
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No legal way my friend.
Current changes tothe policies indicate you will need to be able to prove residency for a 6 month period starting within the first 12 months.
Check out
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
In your offer put down that the drawing of the cheque indicates the acceptance of the offer.
Not sure if it will stand up but it should be enough to stop them cashing it unless they are serious.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thats got to be it…
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The referee?
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
