Forum Replies Created
Hi Tremelo
Post is slightly confusing as you mention pre-approval and then mention that you might look to draw the additional funds down and use them for the next deposit.
Only of doing this would be if the current loan is cross collateralised so i would be thinking carefully and suggest you might want to get some further advice as structure is probably the most important part of the investment loan process.
Richard Taylor | Australia's leading private lender
Hi sienna
Not every client likes the valuation their lender comes back with and appealing it with the current lender is probably futile.
Nothing to stop you looking at taking your business elsewhere and getting a new valuation.
Depending on the figures and what you are trying to achieve may well be worth it.
Let me know the security address and who did the valuation and i can probably give you some options.
Understand if you want to take the response off forum and email as it will contain personal info.Richard Taylor | Australia's leading private lender
Denis
Have nothing to hide.
Currently 40 properties in and around Brisbane but that has taken 12 years to accrue.Will be looking to expand that this year interstate.
If the Broker is Licensed he can offer advice on property. Personally i dont but always happy discuss generally suburbs with clients especially if they are near where i own my properties.
Richard Taylor | Australia's leading private lender
I think i would also be asking how many properties do you own and what is your net worth.
Personally I wouldnt want to be taking advice from a Mortgage Broker who has never owned an investment property.
Richard Taylor | Australia's leading private lender
To be honest you wouldnt need 6 months as 3 months is more than adequate.
Just make sure your Mortgage Broker has experience in structuring a loan as so many seem to have absolutely no idea.
Many deal with the average mum and dad and when iit comes to future investment properties seem to thing you are talking a different language.Richard Taylor | Australia's leading private lender
Hi Denis
Only thing i would throw in the ring is " Do you think Bank A would tell you Bank B or C was better for you …… I think not. At least a Broker can deal with everyone".
Richard Taylor | Australia's leading private lender
Pleasure Russell.
As i say will be back in Brissie Thursday afternoon so be happy to assist.
Richard Taylor | Australia's leading private lender
I assumed Oz despite the handle name as in the US we could do the deal as a Nodoc deal.
Richard Taylor | Australia's leading private lender
Hi Andrew
Firstly welcome to the forum and i hope you enjoy your time with us.
Restructuring the loans requires a little specialist tweeking to maximise your Tax deductions and also rid yourself of non deductible debt as quickly as possible.
Firstly if we were acting on your behalf i would ask you for a short Statement of Position so i could see exactly the loan balance with whom, your own individual gross income and tax brackets and security details and then information on the external debts etc etc.
There are 101 considerations so feel free to drop me an email and i can certainly point you in the right direction.
Just travelling back from the UK tomorrow so wouldnt answer it until the weekend but if thats ok be happy to help.
Richard Taylor | Australia's leading private lender
Think you would get more than 70% on a 40 Sq m unit but agree it will be limited and less than Melton.
Richard Taylor | Australia's leading private lender
Hi Luke
Hate to say it is becoming more of an issue by the day as lenders tighten up their criteria.
Few other questions I would ask in addition to those raised by Matt above but certainly those will help give you a fair assessment.
Other issue i can see is the fact that you need the finance quickly as very lenders are acting that quickly in the present climate especially coming upto Christmas.
Richard Taylor | Australia's leading private lender
Hi Michael
Currently on my last day in the UK on holiday so will give you a long distance comment.
Not an expert on the area so wont comment here but on a financing perspective you have to bear in mind that a 1 bedroom unit will tend to be smaller in size and lenders will want to reduce their loan to valuation.
This also means if have sufficient deposit when you come to sell it you need to find a buyer with an equal amount or hope that lenders severely relax their lending criteria.
Structure is important when you set up a PPOR and most Mortgage Brokers have No idea. Flexibility is key.
Richard Taylor | Australia's leading private lender
Hi maree
Thanks for the endorcement hope you are both keeping well.
Currently in the UK on holiday for another day so experiencing some Melbourne winter weather.
Be happy to assist Russell if he wanted to drop me an email and will jump on it when i get back.
Richard Taylor | Australia's leading private lender
Hi Russell
We do but i cant vouch for every mortgage broker.
Richard Taylor | Australia's leading private lender
With equity in a property there is no reason why you wouldnt be able to borrow against iit.
Whilst there are a range of products available you need to bear in mind that the bottom line is your home is at risk if you are unable to cover the loan repayments so always make sure you have a fall back position.
There are a few other considerations however my suggestion would be to get an independant mortgage broker with experience with investment properties working on your behalf. It will cost you nothiing and you will be able to draw on their experience in what is an important part of the development jigsaw.
Richard Taylor | Australia's leading private lender
Firstly welcome to the forum and I hope you enjoy your time with us.
Finance has to be the biggest issue most new time developers come across especially in the current climate with alll major lenders wary of even larger developers with cash and exeperience let alone virgin investors with no past experience and limited resources.
Whilst there are some lenders who lend against the end valuation of the project most traditional lenders base their advance against the land valuation and ongoing construction costs.
Normal max lvr would be circa 65-70% of each.
We deal with several specialist development lenders however the criteria varies from client to client.
More information together with a Statement of Position would be required to assess the application further.
Richard Taylor | Australia's leading private lender
I think i would be getting a quote from another Town Planner as the idea of employing a professional is that he will guide you through the process.
Having done 101 developments in and around Brissie most TP's should be able to give you a high probable indication of how your likely your deal is to go through.
Richard Taylor | Australia's leading private lender
Cheers appreciate rhettw i appreciate that.
Richard Taylor | Australia's leading private lender
Hi Russell
Firstly welcome to the forum and i hope you enjoy your time with us.
There are many variables when it comes to releasing equity and one of the issues is making sure the loan is structured correctly.
You want to ensure that you maximise the Tax deductability of the loan whilst preserving the security of your PPOR.There is a difference between a real estate estimation and a Registered Valuation from an acceptable valuer.
Given that you will only likely be able to access a maximum of 90% of the valuation why not consider getting an independant mortgage broker to process the loan for you.
It wont cost you anything and you will get the experience of an industry professional.
Richard Taylor | Australia's leading private lender
Have to say recent changes to RAMS serviceability policy would make it very unlikely that they would do a deal.
Dont mean to appear rude but again without a full Statement of Position I would not be able to provide you without any form of assessment. I am in the UK until the end of the week buut feel free to drop me an email and i would be happy to assist you further.
You have to remember many institutions wont allow equity release these days so it is a matter of combining a competitive rate product with a lender that will do what you want.
Richard Taylor | Australia's leading private lender
