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Richard Taylor
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March 7, 2010 - 4:41 am
Lenders like Anz dont do full valuations on purchases or refinances irrespective of what they lvr is if a modelled estimate can be found or if it is a 90% purchase they take the contract of sale depending on where the purchase / security is (both in the same state fine if not likely be a kerbside valuation and asssuming a Real Estate Agent is involved in the sale).
In the Uk we used to call them 2nd gear valuations.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 7, 2010 - 4:36 am
A member who arrived trying to sell his book and services and spent the 3 weeks he was here trying to argue every post Terry and I answered telling members to protect themselves.
Claimed he was the Mortgage Detective but when i queries the name (as it is used by a Mortgage Broking firm in ACT) he couldnt come up with an answer. Left here arrived over at Sommersoft for a few weeks and then thankfully disappeared.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 7, 2010 - 2:17 am
Guys lets agree to disagree.
The next thing is The Mortgage Detective will be back (think he only last 3 weeks) and we can re-open other cans of worms.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 7, 2010 - 2:06 am
As mentioned it was a RP Data val.
Many lenders / Brokers use these Modeled Estimates and the report can be done in seconds.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 7, 2010 - 12:02 am
Maybe 80% of the valuation if they are lucky over a short term of say upto 12 months.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 11:23 am
Wow better watch myself.
Next thing i will be telling everyone how good cross collateralising is.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 11:22 am
Think you will pushing it for a P/L at that level even secured.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 7:53 am
Other issue would be that many lenders would not allow 2 properties on a single Title.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 7:14 am
Not aware of anyone who would do that lvr on a caveat loan.
Usual max would be 75-80%.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 6:17 am
90% lvr would be doable as i think i posted on the other part of the forum if you purchased them individually but of course the vendor has to agree to mix up the contracts.
Secondly you would need to both be able to support the individual borrowing which from your incomes may appear ok but your existing loan on your PPOR you wil be seen as jointly and severally liable for the entire debt and this will probably kill the numbers.
Other than that as Steve has mentioned an 80% lend is pretty good especially if this is your maiden development.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 6:13 am
From what i read it involves knocking down the current house and building a new duplex.
If this is the case funding the deal might be a little harder than you think.
Many lenders will only want to consider the land value as soon as you knock down the house that is all you will have.
Then in turn you would be looking at a construction loan on the new duplex.
Few lenders lend against GR value but higher rate.
Might appear cheap but all depends on the actual location.
There is a lot of Caboolture I wouldn't buy in and remember Morayfield and Caboolture are yards apart.
All in all if everything else is equal and the numbers stack up then no reason not to go ahead with the deal as building a duplex is exactly the same as building a house just you have 2 going at the same time. Assume you have fixed price quotes from a respectible builder as probably not the sort of thing your average project builder will turn his hand to.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 6:07 am
What is the overall lvr pre caveat.
Where is the security I assume it is residential.
Realistically between 2-6% per month is the likely rate so not exactly cheap but certainly quick.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 3:03 am
Having the loan high and IO with 100% offset is exactly the same risk as having it as P & I from day 1.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 3:01 am
Duckster Are you sure you only need $2M per year to go direct.
I deal direct with one of the majors and their hurdle was a lot higher than that.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 2:59 am
Very true and totally agree but most of the forum readers probably wouldnt qualify.
Thankfully as i only have loans on less than 15 of my properties now and whilst i still earn an income from UK wouldnt go to the trouble of a LC.
Point taken but not for your average small investor.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 2:54 am
Terry first error you have made in 9 years and 8572 posts we will let you off.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 6, 2010 - 2:53 am
No
NAB Do thru their 4 start brokers (95% less LMI)
Anz current max 90% less LMI but they are looking at pushing back into the 95% landscape.
Westpac – Only for existing customers otherwise 87%.
Still a few non major lenders offer such a product.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 5, 2010 - 1:19 pm
If you meet the 3 bullet points above you will need to put down approx $25,000 as a fee for credit assessment
Or as i said you could approach John Charcoal and then wont charge you anything.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 5, 2010 - 12:13 pm
Dont use it as security for the new PPOR otherwise you will have a further case of Cross Collateralising the 2 loans.
Both loans need to be standalone.
Suprised the broker set up a PPOR without Offset A/c or infact not being IO.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 5, 2010 - 12:08 pm
When you are restructuring as Terry has suggested you might also be wise to uncross the 2 properties as looking at the numbers you have presented i can only assume the are tied together.
Richard Taylor | Australia's leading private lender