Forum Replies Created
Trevor you mention that you are after finance but then you say the Vendor is financing the deal so I am a little confused.
How much are you looking for and what sort of income are you currently earning.
Most things with the right LVR are doable however more information is required to provide a structured answer.
Email me the details if you dont want to put too much personal information on the forum.
Richard Taylor | Australia's leading private lender
Personally i would not mix the 2 loans as this could cause you problems in the future.
Establish a line of credit now for the 10-20K so that you can utilise the funds when you need as the way the market is the facility may not be approved in a year.
Richard Taylor | Australia's leading private lender
Doubled up
Richard Taylor | Australia's leading private lender
Hi Rob
Unfortunately Anz are not known for their sympathetic ear when it comes to Casual employees.
Depending on the time with your current employer will determine what lvr can be looked at.
Richard Taylor | Australia's leading private lender
Separating the loans is extremely important and the last thing you should do is look to redraw the advance funds as has been discussed.
Also remember just because the property might start off as negatively geared this will not last forever so discuss with your Broker whether you will be buying it in Joint names, Tenants in Common, or even using a DFT.
Richard Taylor | Australia's leading private lender
No hate to say they are correct.
The loan and mortgage documents will need to be amended.
I am assuming the property is not an IP as both CGT & Stamp Duty may also be payable.
SD is payable on a change to a PPOR anyway in some States.
Richard Taylor | Australia's leading private lender
Have the rules changed as a result of the GFC – Yes Dramatically along with many other policies
Richard Taylor | Australia's leading private lender
Hi Paul
Couple of ways.
1) Use a lender that still allows it.
2) Do it as a Commercial Development. This unfortunately means additional costs, higher interest rates and lower lvr.
Richard Taylor | Australia's leading private lender
Tony
Must admit only down side with CH is that it is not called Chapel Hill because it is flat.
Riding down the hills lot easier that going up the other side.
Richard Taylor | Australia's leading private lender
Terry you are bang on.
Westpac are not alone and certainly talking to a couple of other lenders their mortgage insurers have said a big fat NO.
Richard Taylor | Australia's leading private lender
Hi Paul
Think he might want to check on the updated policy.
Looked for a client recently and was suprised how many lenders said NO.
In a multi unit dwlling situation 4+ is the magic number but not necessarily for construction.
Richard Taylor | Australia's leading private lender
No worries Paul.
Richard Taylor | Australia's leading private lender
Hi Paul
Off the top of my hear i think you will have a problem.
Many lenders do have an issue unless the land has a separate Title and in most cases you wont get this until building has been completed.
Some lenders will do upto 3 dwellings on the same site but will limit the lvr to 80%.
Richard Taylor | Australia's leading private lender
Most reports such as the Residex report we use relate to individual properties so you need a security address.
Certainly they provide some interesting statistical information and demographic assessment.
Richard Taylor | Australia's leading private lender
Hi Young cant comment on the location but happy to run a Residex report or two for you if you have a property address in mind.
Will certainly provide you with some useful statistical information. I use it all the time for all of my IP purchases.
Drop us an email with a security address and i can email the report back to you.
Richard Taylor | Australia's leading private lender
Have you considered a Buyers Agent ?
Richard Taylor | Australia's leading private lender
Happy to provide you with a Residex report on an individual property in each location which will certainly give you some interesting statistical information however an actual security address is required.
Richard Taylor | Australia's leading private lender
Hi Paul
Ok one step at a time.
Firstly i hope your current lender allows for multiple dwellings on the single Title as i assume you wont get a separate Title until the dwelling is completed. Reason i mention this is many will not.
Assuming this hurdle is out of the way then the Bank will value the 2 securities being the existing house and separate block of land and will lend against this. They will advance upto 100% of the construction price and release this in stage payments directly to the Builder.
With regards to the new property the same mathematics would apply. Percentage lend against the initial price and then post development approval a percentage release against the Fixed Contract price.
Again you need to ensure the lender will allow multiple properties on the 1 Title.
Richard Taylor | Australia's leading private lender
Does having a few grand in an offset account really make any appreciable difference to a loan?
You would be suprised how much difference it makes.Particularly if the interest paid to the offset account is less than the mortgage account.
If this is the case then you are not using the right product as every offset account we recommend pays the same rate as is being charged on your mortgage. I am aware of several products that pay less interest than being charged and others which are not fully transactional but they would form part of my repetoire.
Usually find Brokers that dont recommend them dont full understand the benefits.
Richard Taylor | Australia's leading private lender
Wow sounds to me like an absolute mine field and I can think of varying issues which might arise.
Does the land have separate title already as Westpac have an issue with multiple dwellings on the same Title.
Sounds like an equity release loan potentially and repaying your MIL maybe a problem.Has the construction started ?
I think I would starting from scratch and setting up the loan in manner which provides you flexibility as you dont want to find that you have sell merely to repay your mother in law as you are unable to fund the additional borrowing.
Richard Taylor | Australia's leading private lender
