Forum Replies Created
Adam
We are going back a year or two to say the least but i used Tribeca.
Dont now what they charge but sure they have a website.
Richard Taylor | Australia's leading private lender
Think he is going to have a problem with Centrelink under the gifting provisions.
Richard Taylor | Australia's leading private lender
I own a block of 18 units in Taringa 14 x 1 and 4 x 2 and they are fantastic.
Rarily get a vacancy in any of them.
Richard Taylor | Australia's leading private lender
Hi Cass
You will possibly get away with 5% deposit as long as everything is ok such as credit and employment history.
Depending on what State you are you might qualify for a concession on the Stamp Duty so best to check the OSR in your State.
Anything over an 80% loan to valuation will be mortgage insured and depending on the loan amount and the actual loan to valuation ratio this could be upto 2.5% (even more on a loan over $500K) of the loan amount. This is a one off premium deducted from the settlement funds to protect the lender only in the event of default on your behalf.
So that takes us to at least 7.5% of the purchase price.
Then you will have the costs of your Solicitor in acting for the conveyance as well as the State Government charges in relation to the Mortgage Registration, Transfer and Discharge (if applicable) as well as Title search and other adjusted costs scuh as Rates etc.
Dont foget if you are quick you will still receive the FHOG Boost so this will help defray some of the costs.
In saying this lenders still require you to save 3% of the purchase price over a 3 month period through genuine savings.
Richard Taylor | Australia's leading private lender
Hi Harry
I have just emailed you the report although the address came up as Kings Park and not St Albans.
Guys in future can i get you to email me a request for a report as i dont live on the forum and may miss requests.
Richard Taylor | Australia's leading private lender
No worries easily done.
Richard Taylor | Australia's leading private lender
Hi Ridiga
No not at all. That is not what i said or meant.
What i was referring to was many forum members are under the impression that if they can convince the Vendor to leave in say 10% of the purchase price plus costs in the deal and take security by way of second mortgage they will be able to finance another IP.
Assume purchase price was $100K you pay the Vendor $90K at settlement which you borrow and 10K over say a 5 year period.
Vendor is offered security of a 2nd mortgage.Traditional lenders will not accept these days a 10% Vendor financed deposit.
Utilising a line of credit or similar is perfectly acceptable.
Richard Taylor | Australia's leading private lender
Hi Ben
Certainly from a lending perspective the population is comforting and the relative distance to a major City is a positive.
As long as the property is sound and does not need too much work to it and can be rented and managed by a local agent certainly worth exploring further.
If you want me to run a free Residex report for you shoot me an email with the address and be happy to send you the report back. Might help in completing your due diligence.
Richard Taylor | Australia's leading private lender
Mhh not an easy one both from a moral and lifestyle perspective as well as financial one.
Firstly bear in mind that when you rent the property out the only interest you will be able to claim will be the interest on the current loan secured against the Brookfield property due to the "Purpose test".
Unless you father is in a position to pay you some rent on the home he is moving into it will not be classified as investment.
Sounds like the original loan was not structured correctly as had the funds been placed in an offset account rather than paying the loan down the interest would have been deductible.
I am unsure as to whether the current loan is in joint names however if it is remember the new loan will need to be in the same format which could cause a few issues in its own right.
Without more hard data difficult one to crunch numbers on.
On a separate note where is your dad looking to move to ?
Richard Taylor | Australia's leading private lender
Hi Cass
Difficult one to answer however i have to agree if you can find value in what you buy i would be buying sooner rather than later.
Of course the First Home Owners Grant Boost has assisted many first home buyers get into their home sooner and the reduction Dec 31 will have an effect.
Personally to assist in financing the deal i would merely save it in a normal interest bearing account.
Most lenders will only go to 90% of the purchase price / valuation (with a few still at 95%) so with lending conditions still tight if you can show some genuine savings and have the affordability to qualify for a loan then at least paying back your loan repayments are benefiting you and not the landlord if you are currently renting.
Course who nows where prices will be in 5 years time but i happy to have a small wager with anyone that they wont be less than they are now.
By the time you wait to save your 20% deposit prices could have gone up another 20%.
Richard Taylor | Australia's leading private lender
Hi Harry
I wont comment on the areas being a Qlder (although in saying this happy to run you off a Residex report on any property you find if it helps) however one thing to bear in mind given your potential circumstances is how to structure the loan.
There is no point taking out a P & I loan and going hammer and tong to pay down the debt when in a few years time you will convert to an IP and look to move on.
Many investor make the same mistake. They then want to draw out the equity for the deposit on their new home and dont realise the interest is not Tax deductible.
Simply structuring the loan correctly from day 1 can save you a lot of grief down the track.
Anyway good luck with your hunt at what is a very exciting time.
Richard Taylor | Australia's leading private lender
I am with LC not just ease of rent but sometimes ease of finance.
Of course in saying that a 1 bedroom that is say 45 Sq M or more can often be very attractive for a single person and if you can find it at the right price risk exposure is limited.
Happy to run a Residex report off for you if you have a address you want looked up.
Richard Taylor | Australia's leading private lender
Hi Lisa
Probably need a little more hard data but there are a couple i can think of that we deal with regularly for clients.
Some have easier credit terms than others.Richard Taylor | Australia's leading private lender
Hi Jenny
Those lenders that offer that charge a higher rate to compensate for it. Not worth it.
The days of having it waived at that LVR are long gone.
However get your Broker shop around as LMI rates went up 20% last week with some lenders passing on the full amount.
Richard Taylor | Australia's leading private lender
Hi Maria
Hate to say in the current climate this is a difficult one.
Most lenders wont go past 90% LVR these days (although there are still a few doing 95%) but you will still need to access the deposit and acquisition costs.
Course nothing to stop you purchasing the property as a PPOR, claiming the FHOG, satifying the FHOG conditions and then renting it out.
Whatever anyone on the forum tells you no lender will allow these days a 10% second mortgage as proof of your deposit provided by the vendor so unless you have actual real savings you will have an issue.
I assume you took the first loan to 95% on interest only ?
Richard Taylor | Australia's leading private lender
Hi Lisa
You have to be kidding me.
Someone want to charge you $4000 to set up your loan correctly something that the average Mortgage Broker does for nothing.
Also how partial can they be if they are coaching you in what to buy.You are totally correct about the SGB offset account when the property is a PPOR.
Also another big disadvantage with the Dragon is that it is a condition of the letter of offer your properties are cross collateralised under their Professional package somewthing i would be running a mile from unless i had to.
Your thinking is however correct why not take out an IO loan from day 1 with 100% fully transactional offset account and get the best of both worlds. Dont use a LOC as you will have issued down the track when you rent the property out.
Richard Taylor | Australia's leading private lender
Hi Wise
I am hoping he or she didn't suggest the following to you:
* have all income paid into my mortgage
* when ready to move O/S I took the funds needed out of my redraw. rented it out, and got the rental income paid into it
If so you have major Tax contamination issues. The loan interest clearly fails the purpose Test and therefore will not be able to be deducted.
Let us hope for your sake you have terminology wrong.
Richard Taylor | Australia's leading private lender
Not sure what rate you are on or the loan amoutn but most clients would get the $375 back several times over even with just one loan.
Richard Taylor | Australia's leading private lender
Hi Matt
Sorry couldn't answer that one.
I get it through my Financial Planning Aggregator.
Richard Taylor | Australia's leading private lender
Matt
Talking about of thousand a year if you are sponsored company which they discount otherwise i think it is $99 a report.
Richard Taylor | Australia's leading private lender
