Forum Replies Created
Hi Dobby,
One drawback of a unit trust is that it will make it exceedingly difficult to fund your deal as a residential loan. If you used another form of trust, company or your individual names you should be able to get a residential loan for your project, which would greatly reduce costs.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Lizzy,
I would try ANZ with that one as they self-insure too now. Good luck with it.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Showbiz,
As Simon indicates she would be committing mortgage fraud if she failed to disclose her car loan. Something she would be well advised to avoid. Furthermore, the bank would detect the loan on her credit report anyway and she may get in a whole lot of trouble (not getting a loan would be the least she had to worry about).
Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
email: [email protected]Hi KPI,
Is there any reason you can not use the whole property as security prior to the sub-division coming through?
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
email: [email protected]Hi Mark,
Some interesting observations, but I really do think your a little pessimistic about the Australian market, particularly with the Melbourne "boom". A lot of the growth in Melbourne has been in the high end suburbs, which I would think would have come from increased prosperity resulting from strong economic growth more than anything. Of course, I can only speak from my own experience, but generally when we write loans in the higher priced suburbs in most cases the clients have at least a 20% deposit as the mortgage insurance premiums are a deterrent to borrowing more than this amount when you get over a certain level of borrowing. At the lower end the market has actually been quite stagnant in many areas as the lower affordability has had an effect on lower income earners. So I think you are not taking into account that many of the middle class are actually wealthier and on higher incomes and therefore can afford the higher prices.
I agree with your view on adjustable rate mortgages and I think they are a disaster waiting to happen for many people, but they make up such a small percentage of the mortgage market here (as opposed to the US where they are quite prevalent) there is no indication they will have any major effect on the market.Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Breammaster,
Have you done any work on the property after settlement? If you have you should be able to have it re-valued higher, but may need to provide some details on what you have had done to the property. If you haven't had any work done it is still possible – during the height of the WA property boom we had a property valued 20% higher after 3 months with no work done, but it is far less likely as the main comparable used by the valuer will be the actual purchase price.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi GalRabbit,
You can actually borrow up to 100% of the value of your property for the taking out a deposit if you wished, although this may not be the most advisable thing to do. Certainly doing as much reading and research as you can will only help you in the long run.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044I can second Michael’s recommendation for Chris Lang’s book. Chris also has a free e-book you can download off his website at http://www.gal.com.au. This will give you a good grounding on how commercial property works. There are a lot more variables to consider than residential property.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Ronald,
Your best bet might be a private lender to come in with a second mortgage over the current loan. She would probably be charged rates in excess of 20%, but as long as the loan was for a short period and you could negotiate very low upfront and exit fees, this could be a viable option. she would need to be pretty sure that the property will sell as you don’t want to get stuck with one of these.
Otherwise, as Terry said, there are asset lenders who will do up to 85% at lower rates, but you would need to refinance out of the current facility. Unfortunately none of the available options are cheap.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.comHi Rav,
If you are not a citizen or permanent resident you will need to obtain Foreign Investment Review Board approval. Go to http://www.firb.gov.au for details of what this involves. In terms of borrowing, if you can justify your income, you could get a regular loan at 80%, or a if you need a low doc, you could get one at 60%.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Paul,
Only a couple of the banks will look at leasehold property and you would most likely be looking at a maximum LVR of 50-60%, depending on the location, tenant, length of lease etc. What sort of commercial property is it? You could probably get a higher LVR through private money, but this would be far more expensive. I hope this is helpful.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.comHi Pwinne,
Here are some questions that would need to be answered for myself or any broker to talk to you about loan structures
Is the 1900 per month in rent the only income you have?
What are the current loan amounts and property values?
Is your current PPOR unencumbered?
How much deposit would you be willing to put down for the new PPOR?
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
email: [email protected]
http://www.perryfinance.comHi Snowflake,
The loan for the new purchase could be in your name with the parents going guarantor. However, in terms of accessing the parents’ equity in their existing home, there is no way of doing this short of selling the property or taking out a loan against the equity (this loan would need your parents to be on it). I hope this is helpful. Best of luck.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.comWe deal with one lender who does serviced apartments to 95% provided the building is below 10 storeys and the apartment is greater than 50sqm. However the rates are around 9% so you would need to decide if this would be economical for you given the affect the rate would have on yield.
Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Adrian,
If you want to have a look directly at some funds, three large ones are Mariner (US Offices), Gallileo (US shopping centres) and GPT’s joint venture with Babcock and Brown (everywhere everything). Here the websites:
[http://www.marinerfunds.com.au/american_property_trust.htm
http://www.gallileofunds.com.au
Hope this is helpful for you.
Kind Regards,
Cameron Perry
DIrector
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi MKC,
A number of banks provide foreign currency loans, however, typically you need to be earning the currency you take the loan out in. While the low interest rates can appear attractive, you need to remember you are effectively playing on the volatile foreign currency markets if you take out one of these loans. So while these loans may be good for short term cashflow, you may end up paying a lot more in the long run. If you are interested in these facilities, make sure you way up the risks involved. Banks that provide this facility include St.George, CBA, ANZ and some international banks such as Barclays and Lloyds through their Asian subsidiaries.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph 613 9662 1999
Fax 613 9662 2044Hi Boatie,
Your doing pretty well with your fixed rate products in todays market. Without knowing your situation in any detail, the rate you are paying for the variable rate product may be a little high, but rate is not hugely important for a reno deal where you will be selling shortly. I hope this is of some help to you.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Lyndon,
What product are you currently in? As Elka said, you should be able to switch to interest only quite easily. The CBA switching fee is $300.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Matt,
In response to one of your questions, as you have a good income, yes it is possible to buy an apartment in Docklands with little or no deposit. In fact you may be able to borrow up to 106% of the loan amount, which should cover all purchase costs and may even put some money back in your pocket.
As to what I would do, I think that the suburbs in Melbourne that tend to be performing well at the moment are the high end suburbs where you would not find a good house for $200-300k but there may be some potential in some of the cheaper suburbs closer to the city, such as West Footscray and Seddon. I do think that you should think long and hard before buying an investment property at 100% leverage though.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Snowflake,
By definition if there is no purchase contract signed, your approval will only be a pre-approval. The idea is that if you have been pre-approved, you have already passed credit assessment and the loan process after you purchase will be quicker and easier. I hope this helps.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
