Forum Replies Created
Jaffa
Like everyone else i am looking at properties where i can add value i.e corner blocks, large lots etc etc.
Everything i own in SE Qld has something going for it or alternatively is a darn good cash flow i.e blocks of units, sounds leases etc
If i get down your neck of the woods I will ask you for some advice.
Richard Taylor | Australia's leading private lender
Dont worry Jaffa I might need forum members help when i buy something interstate so hopefully i can count on local advice.
Sort of 2 way street. I give you a report for your property and you give me some knowledge of an area for mine.
Richard Taylor | Australia's leading private lender
You can try but dont expect a quick response.
At the end of the day the lender has the right to change policy and at the moment this can change daily.
Richard Taylor | Australia's leading private lender
I certainly would not suggest you use the 5 day Cooling Off period on a standard Qld Contract to terminate the deal unless you are confortable in loosing 0.25% of the purchase price which the Vendor will be entitled to.
The Contract should be subject to finance and a Building Inspection and if these are not acceptable to you the Contract can be terminated using either of these conditions without any penalty.
Richard Taylor | Australia's leading private lender
Hi Michael
Yes i was referring to the NAB rather than Homeside for a reason and would disagree with you that Homeside offers a lower priced product than retail NAB.
Personally in my experience the pricing depends on the relationship you have with the Business Development Manager the volume of Business you transact as well in NAB's case whether you are a 4 Star Broker.
I am unaware of any major lender who offers a 95% LVR on both investment and owner occupied properties for non customers in all security areas so again find the comment that NAB is expensive strange to comprehend.
Surely isnt part of the process in making a recommendation to a client factoring in everything from interest rate to credit policy and speed of service. The 2 lending channels have different credit teams and in some cases different credit criteria.
I often use lenders that pay absoluely no commission (Upfront or Trail) at all especially in the Commercial and Development arena and openly charge my clients a fee to be totally transparent. For example the Bank West Rate Tracker product when it was not available thru the Broker network.
How do ORP & SRP Brokers manage this situation ?
Richard Taylor | Australia's leading private lender
Hi Michael
Just out of curiousity how would a client benefit using an ORP Broker over a standard Broker when dealing with organisations like the NAB.
Richard Taylor | Australia's leading private lender
Adam
Have a look at the online shop as they have all Steve's books.
Richard Taylor | Australia's leading private lender
Hi Nathan
RTA = Residential Tenancy Authority.
Ben this might help http://www.qbe.com.au/Personal/Landlords/Insurance.html straight from the horses mouth.
Richard Taylor | Australia's leading private lender
95% is still available as i mentioned earlier but you need to be whiter than white.
Richard Taylor | Australia's leading private lender
Financed a couple for clients over the years and i think Terry is spot on.
Nothing new however they seem to think they have got around the 80 year rule.
Before however you rush in and part with your hard earned I would check that you can still get finance using such a structure.
The majority of lenders will want to give such a entity a wide berth in the current climate and in fact i can only think of one or two who would even consider it.
Interestingly enough those you would think would say Yes will run a mile.
Richard Taylor | Australia's leading private lender
Financed a couple for clients over the years and i think Terry is spot on.
Nothing new however they seem to think they have got around the 80 year rule.
Before however you rush in and part with your hard earned I would check that you can still get finance using such a structure.
The majority of lenders will want to give such a entity a wide berth in the current climate and in fact i can only think of one or two who would even consider it.
Interestingly enough those you would think would say Yes will run a mile.
Richard Taylor | Australia's leading private lender
New one to me also.
Richard Taylor | Australia's leading private lender
See how the market has changed.
When i first started out in the industry in the 80's in the UK it was 3 x the main income + 1 x secondary income.
The odd lender did 2.5 x Joint income however that was an exception.As Terry mentioned some years the figure has increased however varies from lender to lender as has been pointed out.
Richard Taylor | Australia's leading private lender
Badger you have confused me on your 2nd point.
The gross rental income is added to your other taxable income and then any expenses deducted both cash and no cash items.
If the property is held as Joint Tenants then you would apply 50% of both expenses and income to each party.
Obviously this will vary depending on the holding entity.For cash flow positive properties and there are quiet a few of those around you would nomrally consider a Discretionary Family Trust structure.
Richard Taylor | Australia's leading private lender
Maree has made some excellent points above.
Remember in the current climate financing is taking longer than normal especially if it is structured correctly so i would also set the settlement terms to suit you and your Broker.
Richard Taylor | Australia's leading private lender
Sorry hate to be the bearer of bad news but lending doesnt work like that.
Just because you are buying a positive geared property doesnt get you over the line especially in the current climate.
Most lenders are going to want a lot more than that especially if the LVR is over 80% and mortgage insurance is involved.
Remember every lender you go to will undertake a credit search and numerous searches will go against you as they will remain on your credit file.A good broker will be able to give you a fairly honest appraisal immediately of what your chances are in the current climate and can certainly suggest alternative options to you.
Richard Taylor | Australia's leading private lender
Hi Chris
If you have the capacity to borrow and the saved up deposit then a suitable loan could be found however more information would be required.
Not many lenders left doing 95% lvr and those that are have fairly stringent credit criteria.
Richard Taylor | Australia's leading private lender
Yes this has been a recent policy change with a few lenders however we have done many deals recently at an 80% lvr.
In fact did a deal from another forum member only this week who was Dutch and we have obtained an 80% lend without a problem.
Admitedly the amount of paperwork the lenders require is a bit more but nothing more than if you were a local.
Richard Taylor | Australia's leading private lender
Hate to say you can forget Citibank now.
Richard Taylor | Australia's leading private lender
Certainly can on an investment loan if you have no non deductible debt.
Other than that no regretfully not as there is nothing to offset against.
Richard Taylor | Australia's leading private lender
