Forum Replies Created
Which US lender do you use to finance these deal Jeff ?
Richard Taylor | Australia's leading private lender
Hi Karen
Could possibly be true as NAB dont do internal valuations unless the loan is Lodoc so maybe a problem with the loan itself.
Of course there is no excuse for your Mortgage Broker keeping you updated as to the progress on the application.
NAB have the same credit channel as we do as Brokers so the progress wont be any swifter.
Easy answer is to use another Mortgage Broker.
Richard Taylor | Australia's leading private lender
Will vary from lender to lender.
For some 3-4 weeks is normal others we are getting pre-approvals in 48 hours.
Sometimes if your Broker is not 4 Star rated or not on the Banks Premier panel his / your application will not be given any form of priority but as i say it depends on who the loan is with.
Even if the progress is s low your Broker should be able to give you updated information.
Richard Taylor | Australia's leading private lender
Depending on the age and location of the property you may find that Council cannot object.
This is certainly the case in Brisbane if the building is pre the 74 Building Act.
Richard Taylor | Australia's leading private lender
If you use a DT you would want a Corporate trustee.
As Terry has pointed out even though you may try and claim them as PPOR the ATO will look very differently and almost certainly classify the income as trading profit and you will be taxed accordingly.
Also as SNM mentioned you certainly would need to be a licensed builder or engage such.
Richard Taylor | Australia's leading private lender
DM
Probably need to no more about the deal but have done several deals like this previously with no problems.
As i say more information needed first.
Richard Taylor | Australia's leading private lender
keiko
I paid cash for it in my SMSF as the loan amount is too small to make it viable to borrow in Superanuation.
Richard Taylor | Australia's leading private lender
K
Yes i agree with that.
Richard Taylor | Australia's leading private lender
Carlin Yes potentially.
Richard Taylor | Australia's leading private lender
Last one we finished was in February and although my partner is a Builder which certainly helps if you work on say $1500 / square metre then you should be ok.
This does not include of course DA / BA costs or Council contributions and cover merely the building costs, inclusions and finishes.
Standard townhouse size is a difficuly one but normally around 80-85 Sq m for a 2 bedroom upwards and probably min 92 Sq M for a 3 bedroom.
Richard Taylor | Australia's leading private lender
Linar
Hate to disagree but i assure you the Bank's credit and the valuer would notice a special condition stating the Stamp Duty is to be paid by the Vendor.
This day and age they are looking extra closely when it comes to contract terms.
Richard Taylor | Australia's leading private lender
Carlin
RBA movement have nothing to do with fixed rate pricing which is controlled by the movement in the Bond Market and not the cash rate.
At the moment the rate margin on the 3,5 & 10 year bond rates are attractive as far as lenders are concerned but if lenders are prepared to cut margins to lock in customers the rates will fall. Whilst longer term Bond rates have increased shorter term rates have actually fallen.
Currently there is over 1% variance between the lowest lenders 5 year fixed rate and the highest.
Dont tell me the cost of funds for 1 is 100 bps higher than the other. it is merely pricing and competitiveness.Richard Taylor | Australia's leading private lender
BE Nothing wrong with that strategy at all and in fact we would suggest it depending on the total loan amount.
Only downside is at the moment the SVR is about 1% less than the best 5 year fixed rate so lots of room for price movement.
I believe as time goes on you will also see some aggressive fixed price pricing from the Banks as competition hots up.
Richard Taylor | Australia's leading private lender
are you saying it would be better to set up a separate loan for the 20% deposit secured against the PPoR rather than refinance the PPoR to a line of credit with a split option (separating the interest costs from th home and the IP)? YES
Richard Taylor | Australia's leading private lender
I am with you Dan for someone who contributes considerably more than $25K PA and is a younger than 50 Tuesday is going to be a problem.
Richard Taylor | Australia's leading private lender
The First Mac Fightback variable rate has a CAR of 4.89% no ongoing monthly or annual fees.
Applic Fee at $256.25 val & legals at cost.
Not recommending it but putting it up as another comparison.
Richard Taylor | Australia's leading private lender
Hi Rudra
Yes if the valuer will value the property inclusive of the SD then fine.
Other issue of course is the mortgage insurer knocks it back to purchase irrespective of the valuer and the valuation.Nothing else really available in the current climate at settlement. Nothing to stop equity being released afterwards.
Richard Taylor | Australia's leading private lender
Yes it is certaily legal as long as it is disclosed to your lender.
Normally a rebate such as this would form part of the Contract conditions and most valuers will adjust the valuation accordingly.
Had one only yesterday where the purchaser was doing just that and the valuer reduced the valuation back by more than the actual stamp duty (admitedly only rounded the valuation to the nearest $000). Of course the lender will only lend against purchase price or valuation whichever is the lower so in this case the Contract condition is being removed so that the purchaser pays slightly lower stamp duty.
Richard Taylor | Australia's leading private lender
The loans are with the CBA they are both 3yr economiser (variable) currently 4.96%. I'm thinking I need to wait till our home is complete, then refinance to a line of credit and use it to put down a deposit (20%) and refinance the IP with a different lender (80%). Have I got the right idea? Are there any other options?
In essence you are correc t however the only part of the loan which should be a LOC would be the additional borrowing over and above the principal loan amount. Whilst a 20% deposit avoids LMI you will use up your avaiable funds fairly quickly so balancing item between paying LMI and buying additional IP's.
Hope this makese sense.
Richard Taylor | Australia's leading private lender
Yes it is a Call Option contract with the execution date being 1st July 2009.
Settlement can be 30 days later.
Capital Gains Tax is based on the Contract date not settlement date and I dont want it assessed in this financial year.
Richard Taylor | Australia's leading private lender
