Forum Replies Created
Hi Steve
Hope you got my email response and it made sense.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Coming late in on the conversation but as the boys have already said you would never a non recourse standard residential loan.
I think many US states learned a lesson or two on that score post GFC.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Homemade depending on the actual size of the studio finance maybe limited to 65% so what you need to think if it is hard for you to finance it now what will it be like for your potential buy if and when you come to sell.
I think as has been mentioned you could certainly do better In Vic with lower risk higher gearing and potential for some Capital Growth along the way.
One loan product which is proving attractive for investors comes with a secured credit card charged at home loan rates meaning if the property needs a little bit of re-burbishment you can look to use these funds without having to dip into your equity or capital.
Alternatively piggy back the purchase and use the 20K as deposit on the next deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes the beloved RHG.
i had two forum members contact me this week alone wanting to get out of RHG.
Course this is the bit that Westpac didn't want to pick up when they did their big shining white knight act and bailed out the old RAMS.
You can certainly do better.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Max
Firstly welcome to the forum and hope you enjoy your time with us.
Sorry i might have misread your post but from what i can see from the numbers i believe it is certainly doable.
There are many ways to do a deal even if your existing Bank so no.
Course as i say i may have totally misunderstood your post but i dont think so.
Cheers
Yours in Finance.
Richard Taylor | Australia's leading private lender
Definitely based upon purchase price or valuation whichever is the lower.
In the old Challenger days they used to actually lend on valuation rather than the lower of the two but those days have been and gone.
Commercial lending can be different with a little more flexibiliity.
Buy the property and borrow based on the 95K and then get your Broker to arrange a new valuation in 3 months time (without lodging a formal application) with supporting sales evidence and get the lender to allow a loan increase.
Repeat and go again on the next property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i would use Bank West as my lender of last resort.
Doing a top up with them at the moment for a forum member and i cannot believe how cumbersome the process is.
If it wasn't in the clients best interest to do so i would be refinancing he whole deal and starting again.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry mentioned LOC normally brings with is a slightly higher interest rate but i would push for the equity loan and then have the funds paid back into the loan on settlement or set up a separate offset account linked to the separate loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rosa
No i hate to say NO as Scottish and Irish lending legislation is totally different again.
This only applies to properties in England and Wales.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Or alternatively take the stress and strain out of getting it wrong and contact Jamie and get a Professional on your side.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi boys bit of an update on UK Financing.
They say a week is a long time in politics but no where near as it in UK financing where things can change quicker than the weather.
We have now had confirmed and actually had a deal approved already from a UK lender lending to a UK Citizen living and working here in Australia but wanting to buy back in the mother country.
Non of the major lenders will touch such a deal even thru their own Offshore Branches.
<edit>
Certainly a lot easier to do a deal where you already own a property in the UK but for those buying back into the industry or buying for the first time we can now do this as well.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Bronte, ask them why they only recommend new House & Land packages.
As Nigel mentioned it is because they can hide their commissions which can be 30K upwards.
They will give you the 'buy new and maximise your Depreciation / Capital Allowance deductions' spiel but remember you get the same deductions on something that is 6 months old without the in built fat commission.
New properties can provide an excellent source of in built equity but demand a copy of the valuation to ensure that the purchase price / valuation are one in the same.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Fire be surprised how many I have from investors this week alone all interested in the 100% loan product.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Totally agree with Jamie but reading the initial comment i hate to say i don't think the submissions have been accomapanied by comprehensive notes detailing the merits of the submission.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Barclays International will only consider the application where your salary is paid in GBP.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Absolutely bang on Nigel.
Don't chase the golden egg from Day 1.
Be patient, educate yourself, use the services of relevant Professional and learn along the way.
See so many investors who do a small refurb who then for their next project want to go and build and develop a 10 storey unit block.
They would better of being part of a smaller group all with the same goal and ambition but sharing the risk.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Only concern with AMP is 90% + a higher rate kicks in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tim
It is a not merely a matter of getting it over the line because of the lack of credit scoring.
You need to establish the reasons why the deal has been declined i.e short employment / residency history, existing liabilities etc etc and then look at the positive attributes.
i would be looking at the mortgage insurer behind the lender who declined the deal and trying to use someone who uses an alternative insurer or who has DUA.
At 95% going to be a lot harder but not impossible, lot easier at 90%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Fire, why not gie Jamie a buzz and see if he can't order a valuation on your current property (assuming your current allows this) and then he could look at setting up the sub loan to 90% of the current market valuation.
There are a couple of private lenders who will look at 100% loans for investors with a blended portion of traditional and private funding. The blended portion comes at a higher rate and must be P & I but the demand from investors is incredible.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Similar to Daryl.
Put the Nundah Bowls Club under Option subject to a DA and paid less than a $1M.
On-sold the Option for $2.25M subject to our buyer getting his DA.
Our buyer exercised the option and told us they would be settling.
Little did we know that they had actually on-sold the Option to another buyer for an extra $1M who ended up eventually settling and building 55 off units on the site.
Anyway we all made decent money on the deal so we for one were not complaining.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
