Forum Replies Created
Not only that Mortgage Hunter there are loans for people about to start business. They only have to be applying for an ABN. Obviously interest rate higher than norm.
Also there are other lenders who will look at you with 12 months trading (Liberty)In regards to lying, well don’t. On a lo doc loan you only need to stat your income, if this income is enough to service the loan, it’s fine. If not you’ll have to go a No Doc loan (if your investing), it means a lower LVR (65%)where they do not ask for any form of income.
Also, you could be suprised of your servicability, you may well service the loan, especially with the rental from properties you are purchasing.
Depends on how you want to use the FHOG. Generally, it would be;
$100000 minus deposit
FHOG for costsSurplus from FHOG to do what you want with – pay off the loan, buy a tv, whatever.
However it does also depend on what loan product you are applying for too. For Example if it is a 100% home loan, well loan amount would be $100000 and FHOG for costs.
The other thing you could do is a joint venture with an investor. The investor lends you the money and takes a percentage.
Generally, the main stream lenders will not lend to you unless you are discharged bankrupt for more than 2 years. However I have found one lender that will look after 18 months. Besides this, to make your application stronger, they would like a higher deposit than what actually is needed and a good credit history since bankruptcy and genuine savings is always a positive thing, but not compulsary. The lenders will want you, it’s mortgage insurance that is often the obsticle. But you should be ok.
As for non-conforming lenders – too easy. You just need your deposit + costs. Generally 10% depending on area.
This laon should be no problem with equity in your own property for deposit.
The post codes are fine by GE LMI, so can borrow up to 90-95%LVR
Even with a non-conforming lender they are fine – 90%LVR
Sounds easy to me.
I don’t see the problem.
How soon do you want the property to settle?In regards to lenders;
Each lender has their borrowing limit, some higher than others.In regards to purchasing an investment property;
1) Will this effect your govt benifits?
2) I personally think that you should purchase your own home first, then when you got the equity , use it to purchase an IP. Especially the way the market has gone recently, it wouldn’t take long to get to this stage.But, on the profession side let’s crunch some numbers first.
In regards, to Housing Commision;
I was just mainly implying that it might not be the best way to go. There are other options out there for you.
Also with the 80% thing;
In a case the person was paying out a loan from the housing commision and wanted to refinance. He was told: for them (Housing Commision) to be paid out, they would require 80% of the valuation. So if the property was valued at $100k they wanted $80K.Interest Rate climb;
The interest rate was on a continuing climb from when they purchased the house. Once again, though I didn’t go into details with this person, so there is no doubt, that there may have been otrher factors involved. Maybe late payment default rate? I don’t really know. However I thought it might be worth knowing to ask the question before you sign anything.
I could assist in the hard areas and loans
If you want send some post codes of the troubled areas and I’ll see how they come up.
Is the lenders offerring you the loans a non-conforming lender eg. Liberty, Pepper, Ge etc..?
You must pay stamp duty
A real estate agent recently went to jail for not paying stamp duty on flip deals.Siruse
Are you serious? Being Wrapped? At this early stage?
He/She could save the immediate charge of $20000min by wrap investors by just contacting a good mortgage broker,especially one that deals with non-conforming loans.
Just Allan has many options to purchase his own home in his own name saving him thousands$$$$$$.
He may have a relative that will lend him a deposit.
He may recieve a non-refundable gift from a vendor
He may find an investor willing to lend him a deposit in the form of a 2nd mortgage
The List goes on……Always leave being wrapped as the very last option!
After every possible avenue has been exhausted to purchase the property in your own name!
When it comes to finders fees etc.. You charge what you think is acceptable and of course what is acceptable to the purchaser.
What about 1% of the purchase price or a flat fee of $2000.
In regards on how to go about it.
Why don’t you get your solicitor to draw up a Deed of Authority, stating the fee etc… with the purchaser to sign, before you give details.You might need to get an ABN.
I do many referrals, not finders fees though,and it really depends on the size of the deal, to the size of the rate.
The agreements are generally payable by the purchaser upon signing the property contract. However with some you might want to charge upfront, depends on their intentions. As I’ve come across a lot of people who will try to do anything to get out of paying once they have recieved the info, meaning they just get there friend to buy it and avoid the fee.However some clients are happy to pay before they have received any info.First off; you might be best to send your income and liability deatils to me.
I’ll be able to give you a borrowing power, that should be much higher than $80000, depending on what lenders you have been to.You will need either 5% genuine savings or 10% deposit (doesn’t matter where it comes from), depending on location and lender.
Secondly; with past clients that have had housing commision houses, loaning from them, when it comes time to sell they want 80% of valuation as payout figure. I have also had a client where their interest rate kept climbing. It was over 16%p/a at the time. I didn’t go into much detail with this client, however you do need to ask the questions.
It may pay for you to apply with a different lender and even a different house if they use the normal valuation methods, which I would believe to be correct.
I have heard of discounts, but only when the housing commision put their properties up for tender. Also, when this happens if you are renting through them you will have first prefference.
You could look at it this way.
The property investors have nearly snapped everything up from the Goldy to the Sunshine Coast and everything in bewtween.
So with this they start looking elsewhere, regional. There has been a few reports saying that Toowoomba,Warwick etc… areas are on the cusp of the property boom. Houses are selling within 90 minutes of being on the market.
Although, investors have already snapped up most and increased the market price up quite considerably over the last quarter. It should still rise.
But just a few points to consider
If your parents are bankrupt, no one will lend to them for refinance to pay out any debts.
They must be at least discharged bankrupt.Are they going to pay the $180000?
You can purchase the property, even though you don’t have equity, via a gift deposit from your parents.
For Example
Purchase price is $500000
Non-refundable gift from your parents $250000
Loan amount $250000 to go your parents – costsIf you purchased as investment property, should be no problem tax wise.
You can call me on 1300 137 107
I have certainly heard of that.
I have many clients already investing their super in deposits. Earning between 15 – 25%p/a.Setting up the fund generally requires a set up fee (this is the only fee that your super can not pay for)
Cheapest rate $500, for absolutley everything.Then their is the yearly audit fee (your super can pay for) Cheapest rate is $800 -$1100.
A general overview of the rules;
You can invest in deposits (2nd Mortgages)
You can not invest in deposits of your own investment properties.
You can purchase investment properties with your super.
You can purchase a property for your business
You can pay for investment courses
You can pay for internet chargesThe list goes on………..
You have to lend your super out in a commercial sence. Another words you can not charge 2% p/a interest. You can not lend it to your self.
There are many ways that your super can benifit you now and grow for the future.For any futher info
In regards to Baycorp (CRRA) you can ring them on 02 94646000.
There are 2 otpions
1) can have it billed to your telephone account $20. You receive your file within 24 hrs
2) Can receive it for free. Will be sent to you within 10 days. Sometimes they require you to send or fax a letter with your request and details.
There are other lenders beside the Big4 that lend in regional areas under 80%lvr. You don’t need to stick to the Big4.
Also, one of the Mortgage Insurer’s recently released a national coverage. So, depending on how remote you are talking, will depend on the LVR.
Generally, if your looking in towns with ok populations,not 1 or 2000 you’ll be right to lend up to 90-95%, otherwise it (lvr) will go on sliding scale of loan amount.
Sorry, if I’ve missed you, went for a coffee break[
]I can’t really answer that question. You need to do your own research on the security of the property.
My main concern would be, is it a property that can be rented quite easily, if current tenants decide to move on. Also the potential of selling it. Would it be easy to sell or hard? This is only my thoughts on what I would need to satisfy if in the postion.
Like I said, previously, I haven’t had much experience in commercial lending or properties
as I am mainly in the market of Home Loans, Personal & Car Loans, DIY Superannuation.However, if you ever need me to run something by a lender for you only to happy to assist.
Loan To Value Ratio
Another words max loan amount, lenders will lend, based on the valuation figure.
$100000 purchase price
LVR 80%
$80000 max loan amount
I’m no expert in commercial lending or leases, but the max LVR by most lenders is 66% for commercial loans, to purchase the property.
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