Forum Replies Created
Keeping things simple is usually the best option.
If you currently have a freehold property, give this title together with the one you’re buying to a lender who will do a no doc loan / loc.Philip Limbert
APM Finance Pty Ltd
[email protected]I’ve just noticed your query and feel I may have something to add.
Some lenders will take negative gearing into their servicing calculations thereby giving you a larger borrowing capacity. Based on the limited detail you have given re your circumstances, I believe it would be in your interests to explore this option if you are still wanting to invest $250k approx. Any finance broker that has experience with investment loans will be able to help you. I can investigate your situation if requested.
Regards,
Philip Limbert
APM Finance Pty Ltd
0433 007 105Philip Limbert
APM Finance Pty Ltd
[email protected]Hi,
If your object is to increase your income by buying cash flow positive investments or even trade properties, I don’t see the point of either strategy mentioned.
If you sell your property to an investor and rent back, you will incurr selling costs and your rent will be greater than the minimum commitment on a $80,000 mortgage. The only thing you gain is cash for a deposit. You will be able to borrow that same cash against your existing equity if you wish!Philip Limbert
APM Finance Pty Ltd
[email protected]Hi,
Your bad credit problem is only a problem firstly if it is actually listed on Baycorp NZ. If listed it then depends on the loan to valuation ratio required. If you are seeking to borrow 100% of cost or more you probably won’t be able to do the deal in your name. If you only want to borrow 80% then you may not have a problem at all. Its a question of the degree of risk you are asking the lender and their mortgage insurers to take.Philip Limbert
APM Finance Pty Ltd
[email protected]Hi,
A Line of Credit in many ways is the same as an Interest Only loan.
The Lender establishes a fixed amount available based on the security offerred (shouldn’t matter what property you use) & whether of not you verify your ability to repay. This fixed amount does not change until you apply for an increase if security available allows.Philip Limbert
APM Finance Pty Ltd
[email protected]You should be able to borrow at least 40 – 50% of the current value of the land, either verifying your income or on a low doc basis. I would do it on a Line of Credit basis ideally that will allow capitalisation of interest until you reach your borrowing limit.
Providing your $200k value is correct you will have enough funds to complete the subdivision into 3 lots and pay the interest. I would then sell one of the subdivided blocks to payoff your borrowings then hold the other two until further development or sale opportunities arise.
