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  • Profile photo of Richard TaylorRichard Taylor
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    Same issues.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    From what you have written you will use up your equity fairly quickly so if you intend to keep on going I would look at restructuring the deal and starting a fresh.

    Course may not be possible depending on how you are holding the Com property but it would certainly be cleaner for you.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    With some lenders it can be the same as if the applic was being done by an individual.

    Soemtimes there maybe some added legal costs but other than that all should be equal. 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Depends on a lot of things.

    LVR – higher lvr will mean credit score maybe affected /  Same line of work ? / If you are still on probation / A & L position.

    To hard to give you a straight Yes or No answer with further info.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Lots of variables and certainly no Yes or No answer.

    Will depend if the mortgage on the new PPOR is registered before the IP as otherwise at 10% seerviceability maybe a bit stretched. I am assuming it is a registered mortgage with monthly payments being made.

    Think i would get some  advice from a Mortgage Broker who can look at the whole situation and advise accordingly.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    As long as it is the right Bank West product could be fine depending on actual numbers.

    ING are the best in the world especially for a loan split but have to work with what you have.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi Wayne

    1) Lodoc is still very much available for self employed clients who are unable to quantify their income through 2 Years Tax returns and to be honest the interest rates are certainly not as high as most clients think. An 80% lvr is available.

    2) Yes although in most cases a valuation on a purchase would come in at purchase price. Refinances are different although as long as you can justify the valuation with good market evidence and comparative sales then normally not a problem.

    3) I certainly wouldnt Cross collateralise your loans although structured correctly nothing to stop you using available equity in one property to fund another as long as it is dont correctly.

    Have each loan as a standalone loan and you wont go far wrong.

    Just need to make sure your Broker is mindful that if the first loan is done on a lodoc basis then other loans with the same mortgage insurer need to reflect the same income declared.

    Seen too many clients come unstuck here. 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Cant see an issue at all especially if you know the market and the rental possibiliites.

    You obviously have a good history of the Body Corporate and what anticpated costs might be up and coming.

    I have a couple of properties where i own every unit in the block.

    That way at least i get on the BC committee lol

    Richard Taylor | Australia's leading private lender

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    In addition to what Terry has written who now pays the Capital Gain Tax.

    Seller thought he would have a few quid over to cover these expenses but now finds he has to pay more money into the loan and also cover his CGT bill at the end of the year.

    Or in fact the remaining security is a unit and either his lender now doesnt accept the security on a standalone basis due to the:

    1) Size as it is only 44 sq M / Rural over 25 acres etc.
    2) Doesnt have sufficient income to on paper service the loan. Was rely on the potential rent but the lender know doesnt take rent on an unit into consideration i.e Heritiage or takes a lower percentage of rent that orginally i.e Homeside at 60% for example.

    The downsides are endless and happen every day but the plus points are few and far between.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi Talis

    Yes you have it.

    It will save you considerable issues down the track.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Sarah i have just answered your email.

    Looking at 6.48% on Lodoc 80 without any form of BAS or Trading Statements.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi Sarah

    Dont have much information so if you wanted to email me up the basics i can tell you more.

    Richard Taylor | Australia's leading private lender

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    Sarah

    I would be switching Brokers.

    There are many lenders out there who will do a 80% (even 85%) lend on a purchase and not require BAS or Bank Trading Statements.

    Actually had 2 approved today for a forum clients. 1 Refinance with cash out and the other a new purchase.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Yes your current Mortgage Broker sounds like he is a young pup and not an old timer like some of us who are stuck in our ways about not wanting to cross collateralise a clients loan.

    I would strongly suggest you looked at switching the current IP from P & I to IO with 100% offset (assuming you have no other non deductible debt) and then taking a LOC or similar against the equity and using this as deposit to go elsewhere.

    Also think your Broker might be out of touch as you can get a Professional package with only $250K borrowing so can then use the raised funds and split the loan appropriately.

    Cross collateralise now and it may come back to haunt you in the future.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    I agree it is not everyones cup of tea and each client is different.

    I personally have over half of my properties on a P & I basis and the other half own unencumbered.

    To me the gross rents of the unumbered ones go into paying down the principal debt of those still mortgaged.

    This may not be the advice i give the average client after listening to their requirements.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi again Blissy

    Firstly congrats on the news of your new arrival.

    From those numbers i think your equity is fairly limited so might be a matter of using some of your cash / managed funds and looking at a 90-95% lvr.

    Not cheap when it comes to the associated costs but gets you miving forward.

    i am assuming you havent considered buy a PPOR and claiming the FHOG ?

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Most of our our IO loans are for a minimum of 10 years.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    It is alright Garret got axed himself this afternoon.

    Relieved of his duties.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    You could always look at taking out a Nodoc Commercial loan in the name of the Unit Trust and freeing up the respective PPOR securities.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Spiro

    Regretfully nowhere near tight enough.

    As a Financial Planner the hurdles we have to jump over make the Mortgage Broking requirement look like childs play.

    If i had my way would be a minimum of say 5-10 year in the industry, degree qualified and bloody hard exam to get over. 

    Richard Taylor | Australia's leading private lender

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