Hi Christine,

You are quite welcome to ask your broker what commission they are paid by various lenders. As Terry says all of the standard lender’s charge roughly the same, it would be 0.6-0.7% upfront and 0.25-0.3% trailing commission. No decent broker would take commissions into account when recommending products, although I have just…[Read more]

Cata,

I should add that a number of currencies are available but you typically need to be earning in the same currency as your loan. Your repayments will fluctuate with the currency changes so you are effectively playing the foreign exchange market using your property as collateral. If you are borrowing in a currency with particularly low…[Read more]

Hi CATA,

As Richard says it is possible and offered by the major banks. Typically the conditions are maximum LVR of 75%, you will be required to keep the LVR below this if currency fluctuations cause the LVR to go above.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662…[Read more]

You should be able to do a little better than 0.8 I would think. We managed to arrange a .92% discount off the standard variable rate for a client borrowing a similar amount with multiple properties not long ago, so you should be able to get at least this discount for one property (that would be a total rate of 6.65% variable at the moment).

Kind…[Read more]

Hi Adam,

I suggest you have a look at the website of Chris Lang of Gardiner and Lang (www.gal.com.au). The site has a number of excellent free resources related to commercial property and I can personally vouch that Chris Lang is a very professional operator.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins…[Read more]

Thanks for the post Lisa. A client of mine purchased a property 5km from the Brisbane CBD early last year and has achieved a good positive cashflow from renting out by the room. He also lives in the house, which makes it a lot easier to manage but certainly looks a viable way to increase cashflow.

Kind Regards,

Cameron Perry
Director
Perry…[Read more]

Hi Sharvonie,

You are able to obtain finance for New Zealand properties through some Australian lenders from Australia. Using a LOC for a deposit is fine.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044

Hi Elka,

The problem is that the name of your brother-in-law’s brother is on the title of the property. Therefore legally your brother-in-law is unable to borrow against the property without his brother providing a guarantee. As Stuart says you could go guarantor for a loan against your own property, but not your brother-in-law’s…[Read more]

Hi Elka,

Your brother-in-law would be able to take money out of the property in his own name providing his brother went guarantor for the loan. They would have to come to an agreement, but this situation is quite common. I hope this helps.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC…[Read more]

Hi Ananda,

If they can demonstrate their income they could do a full doc at 80% through a major and thus access excellent rates. If they need to go low doc there are still plenty of options available but they would likely have to take out a non-resident loan or else go through a non-securitised lender so as to avoid mortgage insurance, so rates…[Read more]

Hi Snowflake,

How much equity would you need to take out to complete the reno? You may be able to refinance to 85% without LMI if this were to be sufficient. Otherwise, as Terry says, it would be a reasonable risk to go ahead with a valuation in order to access more equity.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level…[Read more]

Hi Rzech,

It may be possible, but you would need to come up with 30% deposit to get this through a traditional commercial lender at reasonable rates. Possibly you can take out a second mortgage to fund the difference, however the rates will be quite high and you need to be wary of the cost becoming uneconomical. One possible way you could get…[Read more]

I will second Terry here and say that 8% is pretty poor for an investment such as this. There are many better commercial investments out there in my opinion.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044

Thanks Richard,

That is interesting. It is also interesting to note that fixed rates are going up with the majors at the moment.

Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044

Hi Jac-dow,

Why is it that you believe 100% loans are not a good option? The terms can often be quite reasonable on these loans. They do not suit everybody, but they can be appropriate for some situations.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044

DLPP,

Buying in cash does circumvent the requirement of doing your own due diligence. For those obtaining US finance, the lenders are generally very careful, and often will not just carry out an appraisal but also an engineering report and possibly building and environmental reports. There is no way that any lenders would loan against houses in…[Read more]

I have had a look at the John Roberts site as well and my suggestion is that you run very hard in the opposite direction.

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044

Hi BillyT,

As Michael suggested the book How Commercial Property Really Works is a great start. You can also go to the website of Chris Lang (one of the authors) at http://www.gal.com.au. I have some experience in dealing with Chris and he is as professional an operator as you can get. I have also heard good reports about Michael himself from a number…[Read more]

Hello I think a good investment opportunity overseas is Bansko ski resort in Bulgaria. I az interested because the prices are relativel low and the place is very good for skiing. Bulgaria Property

Very subtle Nicholas!

Hi Rexilla,

It is certainly possible to get 25% on your cash for a good development, but you should be aware of the risks before investing your money. There are a number of ways you could lose your money. Firstly, the scheme could be over leveraged with expensive mezzanine funding, which leave it vulnerable should there be any time delays. There…[Read more]