Forum Replies Created
You have it in one Jamie.
Just to add fuel to the fire the Bank have also told him that as he has recently sold a property when it comes to settlement he can have all of the net loan proceeds and the 120% loan he has on the 2 IP's can remain.
Me though they would revalue and reduce the lvr accordingly.
How ignorant.
Course come the next rate reduction his rate will be 0.10% higher than the product i recommended and so it goes on.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Joe mentions you will be surprised how many Bankers / Brokers actually think it is a good thing.
Also what lenders tell a client is amazing.
Have a forum client who we started to untangle his CBA loans in Feb of this year and eventually we managed to get them sorted, loan approved and mortgage documents signed.
Settlement was next week and he phoned yesterday to say that he has decided to stay with CBA as they have now offered him a further 0.1% discount and a promise that the loans are now miracliously uncrossed. Trouble is nothing has changed and he just can't see it.
Other than being a total time water for 9 months (And yes i might name him a further post) he is being deceived by his existing Bank.
Set things up properly from day 1 and you wont have issues into the future.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi stu
Yes you will be surprised how few lenders do offer SMSF loans and then how many of them are competitively priced.
A combination of SMSF and NRAS makes an interesting mix but yes can be done and i have done a few of them now.
SMSF are like shelling peas when you get to know the legislation and the lenders requirements and quirks you do them all day long.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Remember whilst borrowing > 80% is available on multiple titles when you knock the property down you will only be able to borrow on the land value so need to make sure you have cash up your sleeve to reduce the loan if necessary.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Joel regretfully you cannot live in the property owned by your SMSF whether you are under or over 65 and in Pension phase.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The other concern i would have is they want the business whilst it is quiet and they have funds to lend but when times get touch or their is another squeeze on credit i can see them running away again like they did in 07/08.
I had clients who were told we can't settle your loan next week as we have run out of funds so could we do it next month.
Course if they do i welcome the additional competition.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes couple of things with Citibank and that is the LMI waiver is post code restrictive so will depend on where you are purchasing.
Secondly with settlement in 3 weeks you would be lucky for Citibank to have even looked at the deal by then let alone approved it and had the loan documents ready.
Thirdly they have one of the worst serviceability formulas i have ever seen for investors so you might fall at the first hurdle and be left in the lurch which could prove expensive if you don't settle in time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi doublejy
Sounds to me like you are getting a wee confused.
Loan structuring is not easy and expensive when you get it wrong.
Why not shoot Jamie a quick email and get him to work the numbers for you.
Having a good Broker on side can not only save you $ 000 will also give you a sounding board for your investment journey
going forward.
Won't cost anything and you will get professional advice which is more than you will get from your Bank or Banker.
That and he is a top bloke too boot.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Tom is a brave man.
Anz docs come from Mumbai and to release the security set up and do them as standalone deals would mean they have to be re-assessed in full.
You might also find the type of valuation they have done needs to be amended.
Even if Anz could understand what you needed the chances of getting it over the line is slim at most.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes we have 6 appointed introducers here in Qld who we take business from and pay them all the same commission rate.
Be surprised how many agents want to get on board when times are quiet or they have the buyer but we wont take the deal from them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi again qldminer
Are you sure those figures are correct as a 20K after Tax loss seems mamoth.
I will assume you are claiming everything you can claim. Building must be an old building (pre 87 at least) and can only assume you have a fixed rate which has not fallen.
Also remember if you purchased at the peak of the market you might find that your net sales amount post agents costs etc do not cover the existing loan balance. Unfortunately you wont get a refund on the LMI premium paid.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No worries Mark that's what the forum is all about, sharing and learning from other.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Echo what the boys have said already.
Interest only with 100% offset gives you the choice to change your mind.
Not to say that you will but never is a big word.
Seen so many clients come unstuck when plans and circumstances.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Smidy
Get you wallet out if you go that route.
Sorry can't help you on the Sunshine Coast.
Had it been the Gold Coast now that would have been different.
Had the same Accountant for the last 15 years and i have one or two IP's and he never seems to struggle with those.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No unfortunately not.
You can only roll it over to a complying fund in the Country you are moving to.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Don't dismiss Nigel's Commercial opportunities as he has a wealth of knowledge in the area and has lived and worked in the USA as a Licensed Real Estate.
I have personally seen a couple of the deals he is currently working on and definately think for a small mum and dad investor that a Unit Trust arrangement like Nigel has set up here in Australia is preferable than using cash or a line of credit for the acqusition of a SFD.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ashley Yes you bettter.
I hear the forum is like the US PGA and that only the first 125 make the cut. lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
A couple of other points worth thinking about prior to proceeding to Contract:
1) Lenders do not like boarding houses at the best of times and it treated as a specialised security. Definately be a Commercial lend but you might even find slightly more restrictive that that.
2) Ever since 'Childers' insurance companies have ran a mile from such properties and those that would cover it are going to want to charge accordingly. Check with a specialised insurance broker what options are available to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have a look at your purchase contract and Sec 32 as it will detail what area is made up of your Title.
I would also ask the Solicitor / Conveyancer who acted for you in the purchase as they would be aware of the position.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As has been mentioned depending on the actual size of the property you might be lucky to get 80% lvr
You have to bear in mind one day you might wish to sell it and your potential buyer may not have 20% of your asking price.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
