Forum Replies Created
As Michael what is huge?
It all depends on your starting salary what you want to borrow, how much deposit you have etc etc.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Certainly two of the lenders you have mentioned are available to Brokers but whether a Broker would ever have them on their panel is a different matter.
As Jamie has mention some lenders welcome investor loans and others don’t.
That is not to say they don’t offer them just that they are not competitive overall in terms of Credit Policy.If you are merely chasing the cheapest rate of interest get the loans manager of any of the 3 lenders mentioned to put in writing that their rate will always be the cheapest and that they will never run short if funds or put the rate up (or not reduce it as much as others because of funding costs ) and query him of her when they say NO.
Having been around for 25 years + in this industry I have seen many a lender come and go and whilst you can argue well there are no early repayment fees on a variable rate loan there are still costs of moving from 1 lender to another especially at s 95% lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Renel
By utilizing the offset account your net interest repayments are the same whether you take an interest only or principal & interest loan.As Jamie mentioned if you think you won’t be buying a PPOR anytime soon then yes a P& I maybe the way to go.
It is something I will be covering on my Investor nights I will be hosting around Australia starting in Melbourne.If you want a copy of my API interview giving some insight into how I built up my portfolio then send me PM or email.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wip must admit 5 times was a bit much but Internet connection in Whisler Canada is not the best and the iPad isn’t adjusting to Mountain time.
I know the product you are referring to but won’t help Miss Jay unfortunately.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie
It is 5.15am here in Vancouver and I have been up for 3 hours.
With Jetlag like this I would never make a Pilot.Anyway off to the Rocky Mountains in an hour or so and limited Internet access up in Banff and Whistler.
My wife is very glad about that.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Miss Jay
Financing a property on a Casual wage can certainly be done but lenders will want to some consistancy of income so you are probably going to need 6 months work history. If you are in a similar field to when you were working full time then maybe less.In regards to maximum borrowing you are probably going to be limited to circa 90%
Loan to valuation so whilst you won’t need property asset backing will still need
a cash deposit / equity.A bit more hard data would probably be needed to provide a further structured answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ron
Hate to say I disagree with your Accountant.The Security Custodian Trust has to be established prior to signing the Contract on ALL occasions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jim’s they can be located anywhere.
I am currently on holiday in Alaska / Canada and processing an application for a forum client in Regional Victoria.
Even when I am back home in Brisbane I have clients all over Australia and expat clients all over the Workd.
Most quality Brokers would be the same.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Owl
Welcome to the forum and I hope you enjoy your time with us.
Yes I don’t see an issue at all in starting your portfolio with a new home
( I built my first investment property when I arrived in Australia in 1993 and still own it today)
as it will certainly provide with plenty I’d Tax credits in regards to Depreciation and Capital Allowance claims.Course never purchase a property purely for the Tax incentives but at an 80% loan to value the will certainly put the property in good cash flow positive territory.
Just make sure your mortgage broker provides you with a copy of the valuation so you can double check the true value if the property as there are some scary over pricings around in the new home market and if sold by marketing or property organizations you may find that the value is less than the true purchase price.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Really Jon i cant think of any lender who insists that you have to be GST registered where you are declaring a turnover of less than $75,000.
Done many a lodoc loan where the client is apply for $150K and is only earning $60K or so per annum.
Dont have to be GST registered to receive investment rental income so that is purely from the registered ABN.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Maria
Go with Terry you will be in good hands.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Heh Jason hate to say that would count me out then as do everything myself including answering the emails licking the stamps preparing the lending submissions and working the deal from start to finish.
Like to think clients feel they are getting a more personal touch.
Currently I am some 14 hours away in Vancouver Canada on holiday but have just submitted a deal for a client online.
Sure could have a PA do that but not the same fun.Everyone to their own but I have done ok so far.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No Andrew I don’t think it will make any difference whatsoever.
I have just had a forum client email to say that a Broker wants to charge her $12,000 for setting up a debt reduction program for her which is an elaborate way of using a line a credit facility with an interest free credit card and using a auto sweep.
The firm concerned are Licensed all hold their Cert 4 and Diplomas but still in my mind doesn’t make their actions ethical or honest.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Jon there is no legal requirement whatsoever to be registered for GST where you turnover is less than $75,000 whether the application is lodoc or fulldoc.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mel
Before you decide I have to ask you one question did you cross collateralise the 2 loans ?
If so then hate to say it wont be you deciding what do with the equity but the Bank.
They may wish to hold it as cash security or reduce your other debt. Re-using the funds to do a reno project may not be an option.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kristin
No certainly not booked in fact not yet pencilled in just had a lot of clients and potential clients ask me would i come down to Melbourne & Sydney and talk a bit about how i amassed all of my properties.
Jac M is my local bag lady and will be suggesting the sort of venue i can hire which will be easy for everyone to find and easy to access. I am away until mid July but on return will try and get a couple of dates pencilled in.
Cheers
Yours in Finance.
Richard Taylor | Australia's leading private lender
Hi Julie & Ron
I must admit if it was the first purchase in your SMSF i certainly dont think i would be buying an off the plan property especially if you are looking at an 80%.
There are only 3 lenders that i am aware who are offering an 80% lvr and one of the certainly wont lend on off the plan.
I must admit you wouldnt want to take the risk that the property was downvalued and you ended putting in extra cash funds just to get an 80% lend on the valuation which could be a lot less than the purchase price.I can think of better areas to invest in rather than wait 18 months to invest in an OTP property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kristen
If it was a month later i might have been able help out as i am down in Melbourne doing a series of SMSF investor presentation nights but unfortunately i am currently on holiday in Canada and not back until mid July.
Hope you get some suitable.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi tiggie,
Firstly i am sorry to hear about the break up with your partner which is never nice.With the equity you have in the property and with potential rent from both this house and any potential new investment property you purchase I am sure that finance is achieveable. Maybe not easy but doable.
You really to work out in your mind if you rented elsewhere what would be your weekly comittment for the sort of property you would like to reside in compared to the repayments you would be making on the Canberra property. Your weekly interest payment on a $200K loan is circa $240 / week so unless you feel you can rent a property for the equivalent it certainly maybe worth considering moving back into the property.
Admitedly if you rented the property this would enhance your Taxable income however your rent is unlikely to be a Tax deduction (accepting he fact you maybe able to claim a portion thru your business).
Not an easy decision but remember buying and selling costs money and erodes your equity over time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It never ceases to amaze me why investors become interested in One Stop Shops as they think they get a bargain by having a group of linked professionals all with vested interests promoting themselves and offering over priced properties to unsuspecting buyers.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
