Forum Replies Created
No 75% lease doc is doable and in fact even 80% depending on the type of security.
Like anything lowest interest rate does not necessarily best product for expanding portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Kacy
As Terry has mentioned.
In addition from a financing perspective you need to bear in mind that not every lender will offer discounts on its rates or fees when purchasing thru a Company entity so choice of lender can end up saving you a decent amount.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
@panina from the figures you emailed me i managed to get the deal to service for $260,000 so not sure who your TIC broker is looking at but seems to be a vast difference.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Panina
Sure feel free to email me.
I can send you my API interview on 0-40 properties in a decade which might give you some tips on other strategies to increase your wealth.
If you tell me which part of the GC the property is located i can give you some further info as i am down there once a week.
Certainly wouldn’t pay an extra 100K just because the property is new.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The other issue you need to bear in mind is a lot of Brokers will provide a Quote for their work performed upfront and sent this out with their Credit Proposal Disclosure.
You may find you get an invoice from the broker even if you decided to proceed with the other Broker who got your deal over the line first.
Totally agree with Corey. If i am aware a client is using another Broker or going to a Bank direct we immediately decline the work.
There is so many good deals out there at the moment a Broker doesn’t need to be doing a load of work for nothing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kim
Welcome to the forum and home you enjoy your time with us.
Your loan serviceability will be based around your own PAYG income together with the potential rent on the property you are looking at less an allowance for your living expenses, monthly percentage based on your credit card limits, other loans etc.
Then you have the maximum lvr you can borrow against the property based on your deposit.
Whilst you may find that your serviceability allows you to go to $260K you may find that your deposit may not be sufficient.
Based on a 290K purchase price and say a maximum 90% lend inclusive of LMI you are going to need to come up with $29,000 deposit + $10,500 (stamp duty, transfer, legals etc) and then a further amount of say $4435 in LMI totalling $43,935.
With 46K you would get in with a little cash buffer to spare.
Course ideally you would reduce the LVR to the LMI sweet spot of circa 88.5% so might use that buffer up or alternatively go with a lender that allows you to capitalise the LMI over and above the 90%.
As far as the actual property personally i wouldn’t focus on a unit or townhouse when on the other side of town you could buy a freestanding dwelling for the same price and have no B/Corp etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If the furniture package is included in the purchase price the valuer will have factored this into his valuation and you will need to pay for this from your own savings or equity elsewhere.
Why not look at buying an established unit and borrowing 90% and then talking to a local property manager and see what furniture if any you would need to put in to increase the rental income.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Amanda
Yes certainly possible to start your investment portfolio on a fairly low income however understand that just because you believe you can afford the repayment doesn’t necessarily mean a lender will agree.
Most lenders have a pre-set scale of expenses they factor in to your affordability including such items as a living allowance, living at home expense, percentage of your credit card limit etc.
On the income side the percentage of rent as well as the accepted yield will also vary from lender to lender.
Certainly your current savings seem to be sufficient to get started with a useful cash buffer for a rainy day.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes use a lender that assesses 50% of the rental income and 50% of the loan commitment.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Oh ok all noted.
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Yours in Finance
Richard Taylor | Australia's leading private lender
There will be a difference in the amount of Stamp Duty charged on the transaction and in the case you sell the property at a profit less costs you will pay CGT on the difference.
If you took the loan over say a 25 year term and were only paying the rent received and a top up out of your own pocket to cover the repayments you certainly won’t be paying it off in 2-3 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Catherine
If you will go as far as the Gold Coast you can go past Steve Hodgkinson who is a partner at the Gold Business Group.
Steve has been my Accountant for 20 years and is an expert on property investment.
He is a member of the forum but is a bit busy to post much these days.
His email address is [email protected]
Tell him i referred you and he will look after you as he acts for hundreds of my PI.com clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Steve
Every investors strategy for wealth creation is different and if you are comfortable with that approach is sounds good.
Many investors prefer merely to pay the interest on their loans and keep the surplus funds in an offset account in case their strategy decision changes or circumstances dictate and they decide not to sell the property after all.
What sounds like the way forward today might not be the case in 3 years time.
As long as you have been casually employed for a while financing the deal shouldn’t be an issue.
Just ensure your buying and selling costs are factored into the deal and the end sale price covers these.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Trish
Yes you will need to notify the lender and also sign a Discharge authority.
Some lenders may require 3 weeks notice so i would do it soon as possible.
You might find your lender allows a security substitution but more likely you will have to discharge the loan in full and then make a totally separate application for the new funds. This will be assessed on its own merits.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As Benny said although you would be surprised in certain areas how every agent is now charging 3% + GST.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No not hungry Corey as thankfully we have more Private lending business than we can poke a stick at but merely pointing out it can be done quickly.
Settled a first mortgage same day on Monday although admittedly it was a low lvr and the client was in Sydney where i Solicitors are based and could sign loan docs.
Yes a lot of the smaller private lender bombard brokers with emails usually because the don’t have an established referral network.
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Yours in Finance
Richard Taylor | Australia's leading private lender
If the deal is right we can settle in 48 hours.
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Yours in Finance
Richard Taylor | Australia's leading private lender
What Lvr ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Agree Terry certainly would not suggest anyone ever withdrew the funds and placed them in a savings account.
So important for investors need professional advice.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry says.
IMO i don’t see the needs to be paying a premium rate for a LOC product when an IO loan with redraw does exactly the same thing.
Certainly horses for course but a mix of both seems to suit most.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
