Forum Replies Created
Thanks Firewater for the update.
Yes there are now several lenders who would do this and some great interest rates around for such loans.
Shame that Hank had to have me banned from his Company’s forum guess they didn’t like other Brokers telling it as it is.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As had been posted previously rate is one part of the equasion and certainly wouldn’t suggest any serious investor merely focuses on rate alone as there are many other factors to consider.
V8ghia still working on date for the Melbourbe night but will post it as soon as I have it confirmed.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi K
Keppara was recently voted as one of Australia’s Top 100 suburbs so if you buy in the right part probably can’t go far wrong.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Whilst as Jamie mentioned there is enough equity on the surface without more detailed information it is difficult to provide an accurate assessment.
I am not sure which part of Brisbane you are looking at but 450K doesnt get you much these days.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Roy wouldnt mix the 2 together but could certainly set up a separate sub loan account on your PPOR and use these funds for future PPOR deposit.
As i say it depends on the current ownership as to whether a Transfer of Ownership is a viable option.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Lesley Yes no issues subject to serviceability in taking out a sub loan as a percentage of the end loan.
I cannot see why any Broker would suggest you cross collateralise in this situation other than to conserve his / her commission.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Roy yes hate to say the old lender trick of forgetting to tell you that more than 1 property is being used as security for the loan.
God it annoys me that they can get away with it.
I would probably start from scratch and unravel the existing ties with your lender.
If you are possibly looking to retain your current PPOR as a potential IP it is probably a good idea to see what options you have here for a possible transfer of ownership at the same time.
Probably a good time to reassess your position and plan going forward before the X ing of your loans causes you future problems.
Little more information would be required to provide a more structured reponse.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Allan sorry cant recommend anyone down in the Newcastle area.
If it is is a Commercially zoned block of land going to be limited lenders look at the deal at that price because for most it will be less than their minimum loan amount.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Shahin
Hate to say you have the wrong forum as Pete hardly contributes at all on PI.com.
Also as far as I am aware he is not a Licensed Financial Planner so his advice will be limited to credit advice.
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Yours in Finance
Richard Taylor | Australia's leading private lender
which is why they recommended setting this up straight away as an LOC so we can redraw that when we are ready to buy the IP
And for that statement solely is the reason why you wouldnt use State Custodians to set up your new investment loan.
As Terry has mentioned some great Tax advise from a Banker !!!! and poeple wonder why they get into so much trouble come Tax time when they listen to such statements.
Dont get het up on the interest rate or the fact that you might incur a dollar here or a dollar there by way of application cost as you will be lose much more than this if the structure is set up incorrectly.
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Yours in Finance
Richard Taylor | Australia's leading private lender
WI i think you will find DHCP is referring to his Superannuation which in the US of A is know as your 401 K taken from the relevant section of the Inland Revenue Code.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yeh that or the birth of your triplets whichever comes first lol …………….
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Yours in Finance
Richard Taylor | Australia's leading private lender
Jack i could lend you my 3 and my oldest is a girl and very sensible.
Sally would love it ……
No i have to say a change in Govt could bring about changes in all areas of lending.
Also competition is a very strong alternation of a lenders policy. When you are arent getting any deals you try and see why.
In saying that all lenders are working towards to this model so less room for change at the mo.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jpr
Firstly i hate to say i think you need some specialist help on this one as the funds you have paid off the principal to date you cannot have back by way of redraw and claim a deduction on the interest.
What i would probably look to do is switch your current loan to an interest only loan and at the same time look to take out a further sub loan to a maximum of 80% of the market value. Whilst the interest on this sub account wont be Tax deductible at least you will have access to a deposit and acqusition costs when you sign your new PPOR contract.
Then once you have located the propery take out a separate loan maybe even with a separate lender secured solely on the new PPOR property itsefl. Delink the offset account from the current PPOR loan and ensure that your new loan has one linked.
If you think the new property is going to be the dream home and you intend to reside there for a long time make the loan P & I however if not make it IO as otherwise you will be in the some position as you are now if you decide to rent it out and buy again.
In saying all of this i am assuming the property is owned solely as otherwise there maybe a few alternatives depending on the location of the property and the actual numbers involved.
Your Broker should be able to assist further going forward.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Opee i agree and that's how i have always structured my portfolio.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Opee what would you like to know ?
Financed 1,2 or 101 over the last few years.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bigmama
Taking it further from what has already been stated remember all you want to do is set up a sub loan secured against your PPOR equivalent to 20% of the anticipated new investment property purchase price + sufficient to cover the acqusition costs and then on a standalone basis (usually with a separate lender) you want to secure the 80% balance.
Most lenders will want to try and encourage you to cross collateralise your securities and wont understand why you want to go elsewhere for the new loan but then of course they are looking after their interest and not yours.
Your Mortgage Broker should be able to advise you further in this respect.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rob
Hate to say the days of Gemworth approving a refund have been and gone so think you will struggle there.
Might get CBA to refund something as an act of goodwill.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi bmtt
Firstly welcome to the forum and i hope you enjoy your time with us.
All lenders lend against the current market valuation of the security where you already own the land or the lower of the purchase price / valuation where you in the process of buying the property.
In realty where you have signed a Contract the valuer is likely to value the security at the same price (Belive it or not this is a good thing these days as many are not valued at purchase price).
100% of construction price is available but will depend on the deposit you put down on the initial land.
Hard to be more specific with actual hard data.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Johann only in the covering notes.
Most lenders have now removed the Yes / No question "Are you a tight ass or not" ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
