Forum Replies Created
As mentioned previously; you must intend to live in the property within 12 months of settlement. To be eligible.
However, it does not state, how long you have to live in the property for! You may live in the property for 1 week and you have satisfied the criteria.
1)depends where or who you lend the funds from?
If it’s a friend or someone – set your own rate.
A lender- starts at 6% up to 15%2) Couple of lenders can assist, your main concern will be exit fees on your current loan and serviceability.
I’m only guessing, but the reason your on a Lo Doc is because you couldn’t service the loan with providing prove of income, hence the broker placing you with a Lo Doc loan. If this is true, you’ll have to take the option of lending from someone or saving etc..Ther are a few Lo Doc loans that are a bit cheaper also,however refinancing to these, probably wouldn’t be worth the cost involved. But a few lenders only charge one or two repayments for exit.
Invest in 2nd mortgages. These can make you are return of up to 25% p/a.
You can also set up yor super do this, as a DIY fund.
Super – well, check with the ATO, everthing I have said complies, you will be on the lower rate.
In regards to offering advice with super – may be you should, let the people now inexperienced or experienced, that there are other options out there, not everyone knows about DIY Super Funds. This can be a great way to increase your super for retirement time. Considering approx $96 Bill last year went into new DIY Super Funds.Also, maybe the numbers would of worked for Delight. Maybe it wouldn’t work to start with, but when refinanced, it might. The suggestion offered a way to get started.
As for ethics,
Firstly; I am a member of MIAA
Secondly check posting “Vendor Finance cops a Flogging” I think my ethics are quite high compared to some of the wrap investors here.You can do straight assest lends, where you are required 25-35% deposit. On your deposit of 50k you could look for a property of $130000. That being $45500 deposit and the rest for costs. This is at 35% deposit. If you went to 25% deposit it would be $180,000 purchase price and a deposit of $45000. However going to 25%, you would be on a higher interest rate.
Also, you might be able to apply for a Lo Doc loan – where you are required 20% deposit and self-certify your income.
Best to get an ABN.Also, different banks have different servicability. Another words, one bank might lend 160k and another might lend 200k. Generally, ANZ and Westpac lend the most, however, there are lot’s of non- banks that can do better, also.
Generally No, because, the service being offered was motivated, to save people from being ripped off and to allow a peace of mind for the investors, so, that they are actually helping the right people.
But on the other hand, if I don’t offer a refferal payment, investor’s will keep going the way they are going and that defeats the purpose,so, yes. This might make everyone happy. Clients get placed in the best suited loan, Investors get a peace of mind, I get to save people thousands.
Terryw
1st posting Yes, as 2nd mortgage.
2nd
That is reffering to lending to yourself or a family member or a member/trustee of the super fund.The super fund is it’s own entity. You can not lend to yourself/family members/fund members/trustees.
(In Delight’s case he/she would need a friend to do a 2nd mortgage from their super and Delight may return the favour or just use one of my clients super funds. But, it shows him/her that there are still options out there. The whole point of the posting.)
Anyway, the super fund can buy investment properties and others, as mentioned, previously. How, it is done is; the super fund is, Delight’s Super Fund, any investment with these funds are Delight’s Super Investments and belong to Delight’s Super Fund. You run it as it’s own entity.
Personal loans are a no no,in general, however, there is a way. But, I wouldn’t bother heading down that road – no need and risky.Have I missed anything?
Hey Hey Hey! Bite my head off why don’t you!
I was only suggesting ways for the person to access funds to start investing, as originally intended.
Delight, is in a situation where these were/are the answers to his/her problem. WANTING FUNDS to INVEST, now. Didn’t see you guys offer any – only sympathy. These methods were suggestions on how to access these funds, now, since being presented in his/her new situation.
I believe, the whole situation is mainly the brokers, fault. Yeh, sure, it wasn’t disclosed, but the lender would of told the broker on formal approval, exactly what’s to be paid out. If not then, the broker should always follow the deal from start to finish, meaning contacting the solicitors for settlement and checking the clients are going to recieve, the funds, that they original applied for. I’d ask your lender,when they became aware of it. Because, the solicitors would of known at settlement, you may have been able to stop the loan, then.Superaanuation- well,well,well. You can access your superannuation now. How it works (but hold on, I may be too inexpeirenced for this!)is, you do a self managed fund. This means you are in charge of your super and can invest it where ever you stipulate. You may decide to invest it in investment properties, 2nd mortgages,shares etc… What ever you do invest it in, the return must be present to your super fund. For example, invest it as second mortgage loan at 5%p/a. Your super grows at 5%p/a. With this you can go one step futher; loan someone a second mortgage at 5%p/a (you may charge what you desire)and that someone lends his/her super to you at 5% p/a, effectivly assisting your problem at hand. You can even pay IO payments. You can even take security over their cars, as well. But, yes, you can not access the money until retirement(meaning cash in your hand), but it will grow your super faster than any fund is offerring, especially over the last few years, (a loss). And can give you some good practice before you do it with your immediate funds.To set it up costs approx $250 then $1095 per year for audits. Don’t believe me, ring the ATO.
Also with your super, you can pay for any investment properties and courses, computers and internet charges. You can even buy your business a property and many more.
Over 9% for 90%LVR Lo Doc. Yes, some lenders,but I DON”T know where you get your lenders from, but mine start at 7.7% and would most probably end up on 8.2%, in this case.
You would refinance in 3-12 months to the cheaper rates.
Once again, just an option for the person to access funds, You wouldn’t stay with the same loan for 30 years. Most loans only have a life of 5 years. 18 months if, non conforming.2nd Mortgages, depending on term of the loan, start at 6% up to 15%. Once, again, same old story, just informing people of options to accessing funds.
Geese,shot me down for offering suggestions.
WINDEL: Where is the risk? Oh wise one!
Well, fistly I didn’t see the article.
However, I have seen many clients get ripped off by being wrapped. And I do know a lot of clients wouldn’t have their home without it.But,I’ll tell you what I do know. I’ve seen some posting on this site where clients have had a $10000 deposit. Firstly, if a client has a deposit of that amount, they can definately recieve their own home loan (unless, currently bankrupt or purchase price is greater than $100000, however in the posting that I saw it was not. Even if the purchase price is greater than $100000 I’d still be able to assist, via different strategies) Most wrap investors ask for a deposit,not only FHOG, what for?? If the client has got a deposit, why do they need vendor finance? Especially when there are lenders like Liberty, Bluestone, Pepper etc.. who’s interest rates start at 7.7% for 90%LVR’s and lend to discharged bankrupt (1 Day out), currently in a Part 9 or 10 etc… And this is without the add on $20000 min wrap investors charge.
I send clients to a wrap investor on a weekly basis, this is only done after every possible avenue as been totally exhausted to obtain thier own home loan.
If you realy want to satisfy your assurance, morals or what ever it may be; send your potetial clients to me first, I’ll see if I can get them a home loan, and if not I’ll send them back.
Let’s see how many wrap investors are rip off’s, greedy or genuinely help the people in need(and there are plenty of them).
email: [email protected]
Finance is not a problem for you. 2 options
No Documentation loan – provide Id and Rates notice up to 75%LVR for business or investment purposes or 65%LVR for any purpose.Also, apply for a ABN then in two years time you will recieve Lo Doc loans at 80%LVR
There are a couple of things you can do, but first it sounds like you paid a brokerage for the broker or the lender is Liberty. If it is not Liberty, you should (well most LO Docs do)revert back to the standard variable after 2 years good payment history.
Problem solved;
Firstly, if your new loan is at 80%lvr, you could refinance to 90%Lvr. If your property is valued at $380000 you would recieve $42000 extra less costs.
Secondly, take out a second mortgage on your remaining equity.
Thirdly, try tactics like approaching the owner of the property you want, to leave some of his/her equity in the property as a second mortgage.
Forthly, access your superannuation.You got heaps of options.
Need any assistance email:
You can lend in Australia with a 25% -35% deposit.
Yes, you can keep the circle running.
quote:
Dear Stuart,Could you please explain the correct structure for DIY Super? I’ve attended Peter Spann seminar in Sydney last month, and get very exciting about the speaker Barbara ??? from Taxpayer Organisation talked about setting up a DIY Super, then I can invest on property as joint venture between Super Trust & myself provided this Super Trust do not borrow any money for investment.
As per explained at the seminar, due to the trustee & beneficiary can not be the same person (ie. myself), therefore it is better off to setup a company as trustee (Director is myself), then I can have myself as trust beneficiary.
But, yesterday when I call the Taxpayer Organisation to enquiry more detail, also to consider joining their membership & setup trust package, the lady told me that I do not need to setup a company as trustee. I can be a trustee as well as beneficiary.
Now, I’m totally confused. I’ll be really appreciate for any comment or advise, as I would like to setup DIY Super before 14 July 03.Many thanks,
Grace
Grace,
Our company helps clients set up self managed funds (free of charge). All you have to do is email: [email protected] and I will forward you details about how you get started and everything else you need to know.Even, have all the documents that is needed from start to finish.
Can assist in property investment with super, and recieve returns up to 25% per annum. Have assisted hundreds of super investors at no cost to them.
Email; [email protected]
For the full picture of setting up and investing your Self Managed Super Funds and recieve up to 25% per annum.
Also, the best ways to purchase businesses and investment properties with your super.
Don’t waste money and time on seminars on this subject.
Sorry, Stuart!
I know it was off the topic, but unlimited finance.
Lending Tip;
1) A lot of lenders, charge ongoing fees, approx$5 -$8 per month. For Example CBA,NAB,ANZ. This actually means your interest rate of 6.57% is now 6.77%(approx). Hence, the new laws in comparitive interest rates.If, you refinanced or took out a loan with no ongoing fees, this would save you considerably over the 25 year term, which most loans are based on.
I know this is only a saving of $8 per month, not $10 per week, however it is a saving of $2400 over 25 years, based on $8p/m ongoing fee.
2) When purchasing property, approaching the vendor for a gift. What is a gift?? Well, when you negotiate a price, Listing price is $100,000, you negotiate to buy the property at $90,000. The difference being $10000. This $10000 can be used as a non-refundable gift from the vendor to the buyer. Saving you $10000 (or what ever the differnce may be).
This approach only works when a) the vendor is happy to comply b) You use the right lenders (not all accept this procedure and a lot are changing their policy on this procedure, so be quick if you want to use this saving method)
3) Rather than use a real estate (sorry agents)in the purchase of an property, go to the Local Council. Do a $10-$20 search on the property. You will recieve Owners details. Approach owner on a private purchase, potentially saving you and him/her 2.5% of the purchase price.
Saving $2500 min on a purchase price of $100,000.I know these approaches are not saving you $10 per week as requested, however, if applied, all approach’s together on a property of $100,000 you would/could save $14,900min.
There are lots of lenders who will assist your goals in regional Qld- depending on, how regional,though. One of the best lenders for remote areas in QLD,that work outside the LMI postcode areas, would be Heritage Building Society.
Reason being, their head office is in Toowoomba and started from there. Therefore, they know the areas of Qld, well, and are more likely to offer assistance in remote areas with higher LVR’s than other lenders.
However, it does depend on, how regional you are talking about, as most lenders will lend to 95% in regional QLD- that is, most Towns/Cities, with population of 10000 or more, there are a few places under this pop. that they go to. Otherwise, you’ll only get 80%LVR or try Heritage for higher LVR in remote places. Remote places being, population of 1000 up.
Also a mortgage insurer(PMI) has just released new post code areas, that they will lend in, this could be very useful for you.
I hope this assists
Yes you can use your equity in vacant land.
I can check your serviceability and find the best loan for you.Over 42 lenders, that won’t cost you a cent more than going to the banks, yourself.
Email: [email protected]
Depending on the amount of deposit/equity you have, these telco defaults most of the time are irrellevant in regards to home loans- personal loans, credit cards different story. For Example if you have 15-20% deposit of purchase price, No problem. However, they would like it paid upon settlement or removed from your file, or in some cases a letter from your solicitor stating that the default is in dispute will get you by.
The other option would have been to approach a non-confroming lender who would only require 10%deposit, although their interest rates are generally 2% higher, you wouldn’t have missed out on the property and could have refinanced when your file was cleared.
vluu27
This is a scare tactic, that your experiencing. Unfotunately, this type of company will follow through with their claim.
But just some little advice on the steps that occurr in this type of incident.
The next step that will happen after this letter, (if they don’t recieve payment) is one of two things,
1st will be sent to a collection agengy,
2nd Lodged with the courts and you will be served with a summons (where you will have to go to court if the debt is not repaid in 28 days from the summons date.)Out of these posssibilties
1st; Collection Agency (depending on the agency they won’t list a default on your CRRA)
You still disbute the debt, via court,solicitor’s, but best of all- ACA (I bet if you ring the company and tell them you will put them on ACA, they’ll go running)
2nd- Lodged with the courts (depending on the contract you signed- if you did) You should win this dispute, the judge has to look both sides, and they should follow procedures for filling a claim. For Example – overdue notices,final notices, telephone calls etc..Only if it goes to court and the company wins, then will they list it on your CRRA, although telephone companies slap them on anyone if your accounts are overdue by 60 days, but in this instant, the company wants their so called money, so they will wait until the last minute to put it on your file.
If they do place it on your file, you still argue the point with Baycorp and the company, if this is noted on your file or you produce a letter from your solicitor, that you are disbuting the default, a few lenders will not take the default into consideration.
I think that your best approach is to call the company ( the manager) and say, if this is not resolved, to my liking, I will take you to ACA- you’ll find that they will probably run and cancell your account as requested- especially if you mention that you have a friend that works at channel nine, just to add a bit more power. (If,Richard doesn’t mind)
I hope this helps
The rates from Liberty are: 110% – 8.75
105% – 8.5Elysium-M,
are you on the 105% loan? If not, you got a good discount.
Also there is another 100% loan about to be launched in August. This product is better than the rest for owner occupied.
