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There already is a lender in Australia who lends over 40 years, not fixed though.
Age is really only one factor, when it comes to defaults.
The most important parts to determine the appropriate lender would be;
1)How much the defaults were for?
2)Are they paid?
3)How old are they? If, older than five years, they would, generally, not be on credit file, unless unpaid or bankruptcy etc.
4)How did they come about?This will determine, (along with normal application critera) what lender would suit you and what deposit is needed.
I’m sorry Mortgage Hunter, I have to disagree with your comments on deposit rate. There shouldn’t be a problem with mortgage insurance, through the correct lender, many discharged bankrupts go through at 90% lvr with very competitive interst rates (actually, lower than the 4 majors,currently)and with ease. If you have a higher deposit it just makes more lenders come to the party, which is not really needed, when already available lenders are competitve in interest rate and features.
If the defaults are out of these lenders criteria, with other lenders, non-conforming lenders, it would be a breeze, these lenders are higher interest rate, however, have products like 5% deposit no geniune savings and lend to major creitd impaired customers ( unpaid defaults/judgements, forclosure etc.). These lenders are generally used as a stepping stone or foot in the door cases.
I do get the feeling though, that these defaults are realativly old, if that’s the case, there shouldn’t be a problem with ending up on a good interest rate.
In regards to self-employment, it would be no problem as lenders have products called Lo-Doc loans, where the self-employed applicant, self declares his/her income as he/she can not provide financials or chooses not too.
If you would like any assistance,
If you like I can pass on the details of a brillant accountant. He is based on Sunshine Coast, however he does travel or is worth the trip yourself. He has wrote a couple of books and lectures a bit.
Totally agree Mel!
Although, I was reffering to the properties that he was trying to do or is currently doing, without buying in his name or option.
In relation to danger, I would suggest that Bear needs a real estate registration certificate or a licence which would be better.
He certainly is acting as a real estate agent! So, if he is acting as one, why then, do real estate agents need licence’s and Bear doesn’t?
What about display home from builders, they offer 6% return.
Anyone had dealings with these?
Peterm
What are you talking about?
Lenders offer 2nd mortgages up to 85%LVR
St George is a lender that lends for 2nd mortgages.It sounds like to me, you are one of these people that make comments to areas that you have no idea about, just a general view! Also, sounds like you’ve been bitten by a broker.
As for valuers, well that subject could go on for hours. How many are in the same boat in other states?What facts do have to back up your claims!
I can provide all the facts you want in regards to 1st & 2nd mortgages. Whether they are through banks, govt accredited lenders, accounts,solicitors etc..
And my associate’s accountant and financial advisor/planner, will only be to happy to answer any questions.
I’ve got the goods, bring it on!It’s not only all what MEl said, it is also, some valuations are done in regards to quick sales (a 30 day sale), the valuers themselves under value the property either because they are; asked by the lender, the become conservative because of their prof insurance, or they just always do it.
I know of 1 valuer in Brisbane that will always under value the property by $10-$20k, because he/she thinks the market will be like that in the future. This is what a valuer should not do, they should value AS IS in today’s market.
On the positive side; if a valuation comes under, you should try and convince the valuer to raise the figure to what you need. Generally, best if you do this through a broker as they should be able to negotiate better. Is quite easy to do.
1 method is to do similar to what Redwing suggested, 3 comparitive sales from real estates, these sales must be in area and of similar property. I don’t think, that appraisal’s from real estates are going to make much of a difference to lenders. As mentioned before real estates want your business and lenders go by their panel valuers.Also in regards to gardens etc. OF COURSE, they take that into consideration, if the garden is good it adds value, if it’s not, well – you know the rest.
Remember the appearance of the front yard can add thousands to your property, when completed nice. First imppresions!!
The next thing would be a great kitchen, then bathroom.The strategy is like beerboy said. However, once you are in the game and start to know a few people you can flip unlimited. Some guys out there are flipping a min 200 res blocks a week. There are some developers just flipping development sites to other developers, these guys are making millions on deals. But it is just simple flips, that’s all they do.
Half the time, don’t even need deposits. You have a long term settlement and due dillegence period, within this time you on sell and take their deposit.
You don’t need an agent either to sell (well, once your in the game, you won’t want one)as they will take the commision.
A general rule of thumb is if the town/city has a min population of 10,000 it should be OK.
In a population with 30000 should be able to get 95%
[email protected]I’m situated in QLD, however have associates that are Nation wide.
Location definately applies.
QLD- Bris,Gold Coast, Sunshine Coast, Mackay – Bowen, Rockhampton,Yeppoon Toowoomba Townsville.
NSW- Coffs Harbour*, Northern NSW, Wagga WaggaLook for not only residental blocks, but also large land parcels for development and unit townhouse sites.
It doesn’t have to be underpriced, but priced well, as land is hard to find for most people in certain locations (there are 2 yr waiting lists in some locations).
I’m a finance broker, working with a real estate chain.
Well, technically what the real estate agent has done is illegal. In this instance the agent should have this agreement signed with the buyer and be acting as a buyers agent for him/her. As, if you sign with the agent, he is contracted to act on your behalf, as a selling agent. This means he/she must act in the best interests for you (highest price etc..). I don’t think he/she is acting in the best intersts for you. (It may well turn out to be this way but currently he/she is not). What I would do, is tell the agent to sign the buyer up, so you keep total sale funds.
This happens all the time.If the developer wants it, ask for a joint venture.
[email protected]If you desire I could assist in many different ways.
First I have great associates in Rockhampton and Yeppoon and Emu Park. Can find vendors willing to loan back deposits.Secondly, need to look at income to assess your borrowing power. You should be able to borrow more than $50k.
Thirdly, for assest loans (TerryW suggested), you will need to be quick, if want it for owner occupied, as Mortgage Insurers from the 5th of Jan 04 are only allowing these loans for investments. Also you now will have to pay LMI on loan amounts above 70 -75%.
Why not flip land. It is hard to find, everyone wants it. Watch your bank balance grow!
If you know of any, got plenty of buyers.I have to agree with Michael R, that valuation can play a big part and assist you greatly. I also agree with Mel, try not to cross collatirse. This is great advice and applies to all investments, especially commercial.
There are lenders out there that will lend up to 110% for commercial deals,however I will tell you now, you pay for it. If the deal works with this type of finance it is a definite goer!
There are a couple of other options though;
1st, try asking the vendor for a gift back.
2nd You can use your super to assist. I know of a company where you place your super in a pool fund and recieve a return of 8-10%, if you want to take funds out of the pool, you pay 10-12%. The only problem is, all rent and profits has to go back into your super fund, therefore giving you a even better return.(This is a general overview of how it works, totally legal and approved by all governing bodies).
3rd Joint Venture- join forces with someone else, this how most developers, make the big bucks.Why don’t you just get it over and done with! Save your time.
Put your SMSF into 2nd mortgages.
There are companies out there, who can get up to 30%p/a. Most, though are about 12%.
Set-up $450 for SMSF
Yearly Audit $900Um, everyone, there is a 100% loan where you don’t have to have the 3% saved, you just need it. And it is actually 2.5% to cover LMI, but you will need to cover other fees, like Stamp duty etc..
With this lender you can get the funds to cover LMI and fees from any where. Gift, personal loan, loan on your car etc..
In regards to getting peoples hopes up, well, these products are 100% home loans, not 105% to cover costs as well. That means, 100% of the purchase price, not 100% finance to purchase a home.
Why should the lenders cover everything?
I know this is off the subject of cars, but I have a few clients that import Bulldozers.
They pay approx $25-30000 per machine, imported to Aust. Sell for approx $50-60000 and this is still selling below market value.
Other machinary items make can make a better return than this too.
Just thought you might like to know returns on other imports.
6.57% would be about the lowest at the moment, however with this loan you must be for investment purposes, no cash out. On the positive has an off set account for your savings.
All Lo Doc loans max 80% LVR
No Doc’s 65% LVR
You should have no problems.
In Australia, no problem. Do it all the time.
To set up DIY super approx $495
Yearly audit $795 approx.You can also have your super pay for investment courses, internet charges, the list goes on….
