Forum Replies Created
Hi GC
If you are in a similar profession there are a few lenders who wouldnt have a problem with your change in employment status especially if you are contracted to a single employer.
We do deals like that for IT forum clients and the like all day long.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kris
Rather than answer each question individually why not drop Jamie a line and get him to sort it all out for you.
Cant think of too many professions where you can get expert advice for nothing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Newbie B sorry i forgot to say if you want to shoot me an email with the address of the unit i will happily send you up a report giving you an approx valuation on the Unit and some local comparible sales.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi NW
Firstly welcome to the forum and I hope you enjoy your time with us.
I can remember buying my first IP some 16 years ago and i still own it today so has been a great investment.
Sunshine Coast has some real bargains at the moment so dont feel compelled to pay more than you want to offer just because the Agent tells you thats what the Vendor wants.To be honest as Jamie has mentioned very unlikely your Bank will tell you the best way to finance the deal as it is simply not in their interest to do so. They will spin you some yarn and offer to take 5bps off the interest rate but all in all the bottom line is the security of your PPOR.
In Qld the Disclosure Statement which accompanies the Standard Contract outlines the Body Corporate expenses but i would personally ask the Agent to obtain a copy of the last years Annual General Minutes if you are in doubt. The Vendor will have a copy and whilst he may not like to release them you can see a lot from reading them about the building going forward.
Certainly as Jamie mentioned get your mortgage broker to arrange an independant valuation or at least make sure your Broker gives a copy of the valuation the lender organises so at least you have a good read.
Keep the loans separate and not cross collateralised as you have worked hard to build the equity in your PPOR and the last thing you want to do is loose it because your Bank didnt tell you the whole truty about securities.
Financed a couple of forum clients recently who were buying up at the Sunshine Coast and there is real bargains so good luck and if you have any questions ask away..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
With no savings your credit score on those income is going to come up pretty low so unlikely to be getting a loan unless you can establish some form of track record.
There is the odd lender who will 95% without an genuine savings but in the main you will need to demonstrate a minimum of 5% over a 3 month period.
Depending on the likely purchase price of the property saving up 5% shouldnt take too long.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes and No Soloman.
CBA can be ok if it is a nice clean <80% lvr with an internal credit score of 1-3 but if you come in at 4/5 expect them to say No.
Like any lender when they get business in the service levels fall backwards.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Rose hate to say the reason why the property was valued $30k less than the purchse price was because someone earned a nice fat commission off the sale to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi West
Yes on the surface the numbes certainly stack up.
I have financed 3 or 4 deals in Geelong for forum clients over the last month or so and not had issues with valuations.As Derek has mentioned "actual equity" and "borrowable equity" are 2 different things and whilst you appear to have plenty of each the structure of the loan going forward is important to enable you to carry on with investing.
Too often i see clients with poorly structured loans thanks to laziness or lack on knowledge from their mortgage broker or Banker (If the later then often this is done by design to ensure the clients offers up more security than needed).
Try and limit the amount of reliance your PPOR is used to support the new loan by split the loans between securities.
Any Broker with investment experience will be able to offer up some suitable recommendations.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Anz just announced 37bps reduction.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Not at all.
A 90% lvr on a $300K purchase could be significantly less than a 82% lvr on a $650K property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Heath
You are just about there.
As Jamie mentioned if you think one day you might move out and rent out your current PPOR then go IO on the PPOR loan.
If not then P & I is fine.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
PFranky
Just drop Jamie an email and get him to sort it out for you.
He has vast experience in the area and even though he comes from Canberra we dont hold that against him.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wow prospector hate to say that is probably the worst thing you could probably do.
Your lender will be looking to maximise its own security position and be wanting to cross collateralise your PPOR with your IP and certainly isnt going to tell you how to structure your loans correctly.
Other little trick is lenders often do a quick credit search telling you that it wont do you any harm and that way they can confirm the deal and next thing you have fried your credit score.
Talk to a Mortgage Broker who is experienced in investment lending and get some Professional advice on how to move forward and that doesnt mean the local Aussie / Mortgage Choice Broker who is a plumber by day and a mortgage expert at night.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Stass
No certainly you can make an offer subject to anything and as long as the Seller accepts it then all well and good.
I would make the offer subject to finance on Terms acceptable to you and a satisfactory Building Inspection within say 14-21 days.
This way you have peace of mind that the as long as both are ok then all systems go.
Either make your offer through your Solicitor or get the Selling Agent to draw up the purchase contract and get your Solicitor to look over it first before signing.
Just make sure your mortgage broker has some experience as often with franchises like Aussie the consultant might have a day job as a motor mechanic and then in the evening he is offering you important credit advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Hbay
Hate to say there is no change in the investment rate of Stamp Duty and has been stated it will be determined by the Contract date rather than the Settlement.
I have a forum client where we are looking at a Call Option contract to get around the Contract date and make it July 1 rather than pre June 30 to lower the acqusition costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes house size if the important part and then you can work out the square metreage cost.
Buying OTP can be difficult as finance wont be approved until completeion yet you have to go unconditional from day 1.
Must admit i have been swamped with applications from Gladstone, Emerald and the Coast in 2012 and in the main we have found the valuations holding up very well. Some lenders are getting a little coy but that is not suprising.
Just make sure you have sufficient funds to complete and structure the deal in such a manner that if the valuation came in light you can still settle.
Your Broker should be able to analyse the deal for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Normally anything over 4 units on the same Title is considered Commercial and the rates and fees charged reflect this.
In saying this there is the odd lender who may look at the deal on residential terms however dont expect to be getting all the Pro discounts etc. Normally these deals are done at standard residential variable rate.
The rate will depend on the overall loan to valuation and other factors so without a lot more detail it is difficult to comment further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agreed but boys the Aggregator most of us belong to wont take David without a minimum of 2 years experience.
Hate to say it is a big bad world out there and you probably have to accept you will accept 12 months trying to get referal networks built up tying yourself in with an Accountant / Financial Planning firm etc etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Thommo
It is certainly a good question and one that gets raised here a lot.
The entity you use going forward with your future investment property purchases will depend on a couple of things some of which will include:
1) Whether the property is negatively / neutral or positively geared.
2) If negatively geared whether you need to claim the Tax credits thru your salary / income.
3) Your occupation. What are the chances of being exposed to potential litigation.
4) The value of your current assets. Did you need to protect these or future assets from external litigation.
5) Do you have dependants or a not working spouse?Etc etc.
There is no one structure to fit every client as everyones circumstances are slightly different and your needs and requirements will vary to the next investor.
Unfortunately a Financial Planner is not licensed to offer you Tax advice so no point in going down this route.
Another consideration is how the loan will be structured and again a Financial Planner unless they are Licensed to provide Credit advice cannot assist here.
In regards to the loan structures going forward further hard data would be required to ascertain the best way of funding the new acqusitions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Bit late now given that you have already settled on the property.
Just need to bear in mind that substiantial renovation and strata titling the units will trigger GST so you need to factor that you into your end sale price.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
