Forum Replies Created
No and Advantedge following suit so a lot of very unhappy investors around at the moment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kosta
No hate to say not correct at all.
You have to disclose all loans you are providing a Guarantee for these days so this certainly won’t aid you in the servicing stakes.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi again Aftab
Be careful about buying a small unit (non-student or not) as financing anything less than say 50 sq Metres will be extremely difficult.
Not to say it can’t be done but more restrictions in regards to deposit and higher interest rate.
Look for something that can rented to the open market as well as a specific sector of the rental community.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Nodoc loans are readily available when you borrow the funds in a Company entity so lack serviceability is a thing of the past.
Course borrowers may not like the interest rates or terms Nodoc lenders charge but all it all depends whether you believe you can still make money on the deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Why are you going with an investment loan when you intend to occupy the property for a year ?
Wouldn’t you go for an I/O owner occupied loan.
You won’t be using potential rental income to get over servicing as you are living in the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
FXD received and emailed off.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
RYF email me and i will send you a copy of an API interview i did a few years back.
I retired in 2004 at 40 years of age owning 40 properties outright with a cash flow well in excess of $1M per annum and a net asset position of over $26M using a variety of different strategies.
Thankfully the properties in Brisbane have doubled and in some cases trebled so the asset value has increased considerably.
Nowadays we do a number of things but with the focus on building cash flow.
Even in a stagnant or declining property market you can always make money.
I have 3 adult children and they are learning the techniques to set themselves up nicely for the future without having to rely on mum and dads money.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
FXD,
It will reduce your borrowing capacity over time due to the sensitised rate used by most lenders and the fact they discount the gross rent.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Rule of thumb with most lenders:
Net monthly income + 80% of Gross Rent
Less
* Living Expenses assessed (dependent on the size of family. Lenders use a minimum of their own preset scale or your declared amount whichever is higher).
* 3% of Credit card limit.
* Existing Personal Loan repayments.
* Existing loans based on a P & I loan at a rate of say 7.25% (Going to be a lot higher than you might actually be paying on an interest only basis at say 4.5%).= net monthly surplus
Divide by P & I factor at say 7.25%
This will give you a borrowing amount.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Course Mikey remember the calculator is only a guide.
2 lenders who both insure with Gemworth will quote you 2 different amounts.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sector & Michelle
Firstly welcome both to the forum and I hope you enjoy your time with us.
Establishing your borrowing capacity is certainly the first port of call and then mapping out a plan to move forward.
There are a number of ways to make money in the property market depending on your comfort level and experience.
Feel free to shoot me an email and I can send you a copy of my API interview I did some years back on building a multi million property portfolio from scratch and the various strategies I look to implement.
Don’t forget to ask as many questions as you like and spend some time going over older posts for reference.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ian
Like you I have been investing in Brisbane for over 20 years and have built a property portfolio worth in excess of $30M. Thankfully i own all of our properties outright without any debt.
Personally other than retaining a property which we have developed I have never purchased a new property.
I disagree with you comments in regards to premium tenants and maximizing tax deductions.
Where the property is 6 months old there is no difference in either and the property is still covered by the Builder warranty.
In fact doing it this way you can often get better value for money and in many cases the same property can be cheaper.
We certainly show our clients how to achieve this.
Buying a townhouse in Wynnum West for $154,000 in 1991 was certainly premium priced at the time as we bought a complete block of units in Wynnum itself some 5 years later and paid less than $72K per block for a 6 pack.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As a licensed Real Estate agent Ian I assume you also recommend second hand properties to your investor clients?
Can you confirm this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wouldn’t your Broker have known that CBA used a sensitised rate on external loans whether they be in this Country or not ?
UK housing rates in the main would be less than 3.5% so Mike will be better off to use a lender that doesn’t sensitise the rate on external debt at the same level.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rebecca
Reventon has been widely discussed in a previous thread.
https://www.propertyinvesting.com/topic/4409895-reventon-investments-scam-or-what/
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Chris Yes over the last 20 years that is all we have done.
Buy low sell high… repeat.
If you mean the introduction of the NCCP legislation then Yes you need to hold an ACL to offer such a product.
Email me and I can send you the API interview.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you have 2 Years Tax returns and pay Tax on the income then lenders will consider it even if it a Wrap contract.
When one of the Companies I own being First Home Owners Group Pty Ltd was in full swing doing Instalment Contracts we had a number of lenders who would lend on the income.
If it is part time income or you only have a few of them then unlikely to be accepted for a number of reasons.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Personalised named Deposit books so they can pay in their advance rents.
Never given any one of my Tenants a Xmas present and don’t intend to start this year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Depending on the security location and lvr starting at 1% per month + 1% -2% application fee.
Newly formed companies are fine.
Maximum 65% – 70% lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Charlie
Nodoc loans on a non coded basis are certainly alive and well and whilst even on first mortgage the rates are not cheap (I own and run a private lending business so can talk with some element of authority lol) we have a number of clients who come back repeatedly.
For longer term deals most traditional lenders are going to require some form income evidence whether it be from BAS / Accountants Declaration or Business Bank statements.
Let us know if you need any further information.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
