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No it is a way of a lender saying we offer Lodoc but these are our requirements.
Lodoc is for clients who havent got access to their 2 Years Financials.
In saying this of course the lenders attitude is that you would still be completing your Business Activity Statements even if you Tax returns are not upto date.
They are not alone however CBA and a few of the others have had this as a requirement for some time.
Options are diminishing for self employed clients without evidence of Tax returns.
Richard Taylor | Australia's leading private lender
Possibly as 95% lvr is almost impossible to get without using PMI as the mortgage insurer.
Not ideal but sometimes you dont have a choice.
Richard Taylor | Australia's leading private lender
If the loan isnt mortgage insured then i am suprised your Bank have told you that is a problem.
If it has been structured correctly then i can see how that would be an issue do it might be case of getting your Broker to try an alternative lender.
Obviously without the rest of the hard data it is difficult to comment further.
Richard Taylor | Australia's leading private lender
Harrison
Difiicult to now why the finance was declined on your 3rd IP but certainly doesnt sound like the loans are structured correctly.
Must admit we are finding investors are picking up the slack left by some of the first home buyers and buying in droves.
I dont think there has ever been a better time to buy.More important question i guess is do you now why the loan was declined and can your Broker suggest ways of getting the deal through this time round.
Richard Taylor | Australia's leading private lender
Hopeful
Sorry to read your story.
Regretfully if you have missed a payment over the last 6 months no conventional lender will offer you a lodoc refinance.
Westpac still look at 80% refinancing however as they are one of the few lenders left doing refi's insist on spotless credit and payment history.Dont now any private lender that would go to that lvr either irrespective of the rate of interest.
Lodoc above 80% is still available just but the rates are horrendous and only availble to self employed clients with ABN > 2 years + Refinances also dont allow for any cash out.
Richard Taylor | Australia's leading private lender
One of each.
i actually own a block of units in BH but i have had that for a few years.
Richard Taylor | Australia's leading private lender
A couple of areas i have increased my portfolio in recently include Bowen Hills and Albion.
Richard Taylor | Australia's leading private lender
Hi Tony
I agree with Terry why pay down the principal when you can change the structure of the loan to an interest only loan with 100% offset account and have both the flexibility and on call access of your funds.
Also if you are looking at buying another IP initially then the name or entity which you use will depend on the property itself.
If it is negatively geared and you need to claim the tax deductions each month then either buy it in your sole name or altenatively buy it as Tenants in Common with you holding 90% of the shares and your wife 10%.
If is it neutrally or positvely geared then maybe look to buy it in your wife's name with you as a Guarantor or altenatively my favoured structure a Discretionary Family Trust. This certainly be well worth considering if you have dependants now or in the future.
Richard Taylor | Australia's leading private lender
As Terry has mentioned 90% even 95% would be possibly available however the mortgage insurance would be fairly hefty and need to be deducted from the loan proceeds on a refinance at that LVR.
Guess it all boils down to the Banks valuation of your current property.
Richard Taylor | Australia's leading private lender
Not quiet right so let me correct the anomolies.
The first home owner boost will continue in its current form for first home buyers entering into contracts (and owner builders who commence construction) up to and including 30 September 2009, providing eligible first home buyers with $7,000 for established homes and $14,000 for new homes. In combination with the existing $7,000 first home owner grant, this means first home owners will receive $14,000 for established homes and $21,000 for new homes.
For first home buyers entering into contracts (and owner builders who commence construction) on or after 1 October 2009 and on or before 31 December 2009, the boost will be halved to $3,500 for established homes and $7,000 for new homes. In combination with the existing $7,000 first home owner grant, this will bring the grant to $10,500 for established homes and $14,000 for new homes.
Post Jan 1 2010 the FHOG Boost will be discontinued.
Richard Taylor | Australia's leading private lender
Income is from both.
Cash flow from rents and profit and lump sum from development.
I have been buying property here in SE Qld since 1995 and got to a position where i could live off my income in 10 years.
As to the timeframe to service debt well that was circa 5 years.Admitedly didnt have that much debt compared to todays numbers and have seen excellent capital growth in all of my properties.
Richard Taylor | Australia's leading private lender
I now personally i have an income from my IP's more than enough to support my developments and the Bank will lend on that alone.
Mortgage Broking and Fin Planning income supports my day to day expenses but my rental & wrap income is what i use to support any borrowings.
Richard Taylor | Australia's leading private lender
Adam, Sorry i deleted your message and number this afternoon by mistake.
Feel free to call me in the office tomorrow if you want to chat about wraps in Qld.
Richard Taylor | Australia's leading private lender
Personally i would always look for an interest only loan with 100% offset as it gives flexibility and allows for a change in your own circumstances.
If you are looking to repeat your purchases over the coming months / years there maybe some mileage in looking at one or two of the Pro packs.
Richard Taylor | Australia's leading private lender
Hi Coco
Yes because it would still result in a partial sale and therefore trigger Stamp Duty & CGT.
Richard Taylor | Australia's leading private lender
Unfortunately not that simple.
You wil be up for Stamp Duty on the Transfer value charged at the current valuation as well as CGT on any gain made.
In addition the discharge, transfer and registration fees if the property is mortgaged as well as any new application or set up costs.
Richard Taylor | Australia's leading private lender
Hi Michael
Firstly welcome to the forum and I hope you enjoy your time with us.
Regretfully on a standalone basis you wont find any lender offer a 100% loan these days and the odd lender that offers 95% will want to see a minimum of 3% genuine savings. There is the odd exception but you will end up paying for that.
Unless a parental gift or a family pledge can be used i think you will struggle to get the deal over the line.
Richard Taylor | Australia's leading private lender
Yes i would be interested as well.
Also be interested to see the number of lenders who accept this structure.
Richard Taylor | Australia's leading private lender
Hi Adam
A few answers for you:
a) what would be the average deposit for a renter to buy be if there is one or is it a case to case scenario 1)if they were a first home buyer how long before they could receive the FHB grant. This will vary from purchaser to purchaser. Remember at the moment if you only have 5% deposit and maybe a small default it is unlikely that you would obtain finance especially if the property is out of the City / Metro area so between 0-10% wouldnt be out of the question.
b) if the renter defaulted on their payments-1) how long for the contract to be terminated,
Normal Contract Terms apply and this will vary depending on whether it is an Installment Contract or a Rent to Buy / License to Occupy.2) as there is a lease in place are you them obligated to see it through to the end or would it be terminated as per a standard lease agreement conditions,
You are the initial purchaser so can make your offer subject to vacant possession. Whether the Vendor accepts the offer is a different matter.
3) is landlord insurance applicable.
There are a couple of insurance companies that specialise in providing Building insurance where the property is sold under an Installment Contract however standard landlords insurance sould not apply.c)is the contract deemed unconditional at the time the buyer takes possession of the property
No this is the Possession date. The Contract would be subject to normal conditions and once these are waived or adhered to then the Contract would be unconditional.d) is it possible to employ a real estate agent to carry out sourcing a purchaser and if so when would they get paid eg time of handover or final settlement
Certainly there is nothing to stop you using an Agent to source a potential buyer. We used only accept applications from certain real estate agents through our specialised Wrap Company, First Home Owners Group Pty Ltd.
Richard Taylor | Australia's leading private lender
Hulk
Interest is charged on a daily basis and debited monthly on a the Line of Credit account similar to a normal interest only loan.
Difference is the flexibility of a LOC.Initially what would happen is you would take the land loan to 80% and then 80% on the construction costs.
Interest would be charged on the land and then progressive interest repayments at each stage of the building process.
Normally most Building Contracts allow for 5 stage payments.Richard Taylor | Australia's leading private lender
