Forum Replies Created
bb8
It is a standard clause with the NAB as 0.5% is the norm and anything more is by negotiations.
In saying this the 0.7% is available on a loans over 250K whereas with Westpac, Anz, CBA this only kicks on with loans > 750K.
Richard Taylor | Australia's leading private lender
Thats great news Karen.
I just picked up a house today for $85K through a very good agent friend of mine in mid Qld which was originally on the market for $155K and is rented at $215 / week. Contracts all accepted with 90 day settlement so bringing it into next Tax year.
Not bad cash acqusition for the SMSF.
The bargains are starting to come back if you dig deep enough.
Richard Taylor | Australia's leading private lender
Mick beat me to it with his comments on how you intend to finance your first deal.
Realistically maximum lvr these days is 90% of the purchase price / valuation and most lenders require between 3% and 5% genuine savings. If you have any form of bad credit you will end up paying a higher rate of interest and probably some additional costs.
Your income will mean nothing to lenders these days without some form of non borrowed deposit.
Richard Taylor | Australia's leading private lender
Tim
2 posts to date both advertising your own properties for sale.
Can you answer the last question left on your other post and also advise us why these are such a "wonderful opportunities".
Richard Taylor | Australia's leading private lender
the 7
It is not too bad 2% Yr 1 / 1.5% Yr 2 & 3 / 1.2% Yr 4 & 5.
But when you consider that you can pay as much as you like into the loan in the first year and after year 1 it reverts to the variable rate currently 5.64% with no monthly or annual fees not a bad product at all.
Richard Taylor | Australia's leading private lender
Lodged 4 applications to date i have set out some of the T & C's above.
What
else
Richard Taylor | Australia's leading private lender
Best way to finance the new IP would be establish an investment Equity Manager Lien fo Credit with Anz secured against your current property to fund the 20% deposit and acqusition costs.
Take out standalone investment loan with alternative lender or Anz if no CC secured against the IP.
Yes you could consider selling the current PPOR to a Unity Trust however there is Stamp Duty payable on the Transfer and the PPOR looses it CGT exempt status immediately. Issue comes in finding a lender who will fund a deal in a HDT or UT structure.
Richard Taylor | Australia's leading private lender
Hi John
I assume that you mean you either purchased the property for cash or are looking to refinance.
Either way seems to be fairly straightforward and repayments will be a lot less than $900 / month.
Shoot me an email if you want a hand setting this up.
Richard Taylor | Australia's leading private lender
Welcome Happy Man.
Richard Taylor | Australia's leading private lender
Hi Karen
Yep sounds like a good buy.
Just dont be too disappointed if your financiers valuer doesnt put more than the purchase price on the property as this is rare even with a good buy.
Also just for reference make sure the loans arent cross collateralised another pet hate of mine.
Richard Taylor | Australia's leading private lender
GOD you are correct there are no more conventional 100% loans these days with maximum LVR being 95%.
Richard Taylor | Australia's leading private lender
In an ideal world you would want to establish a LOC against the PPOR and use this to fund deposits and acquisition costs for the new IP's
Unfortunately with Anz they wont allow LOC to be opened unless they can justify where the balance of anything over and above $25,000 is going so might have issues there.
If you have decided to purchase theese properties in the same entity as your business (as long as you understand the risks involved here) then as long as you do not have a Corporate Trustee (Anz Breakfree wont cover applications where there is a Pty Ltd Company involved) then you should be ready to go.
Richard Taylor | Australia's leading private lender
Hi Rudra
Those form only some of my reasons for disliking Cross Collaterlising securities.
In the current lending climate there are issues that i couldnt ever have invisaged occuring with lenders when i wrote that.
Been away for 2 days with the long QLD weekend and had 3 forum members email me whilst away to ask me to help them refinance to get away from the CC issues their current Bank is causing them presently.
Richard Taylor | Australia's leading private lender
Hi Earthling
Yes the product still exists in some circles however with some lenders the requirements include a copy of you last 2 lodged BAS as well as maybe your Bank statements to verifiy turnover.
We deal with some lenders who require nothing other than a signed statement. Very much horses for course.
As to whether the product will be around forever and a day I couldnt tell you. I dont think things will get any easier for self employed clients or those who are unable to verify their income through traditional means however i guess it is each day as it comes.
Certainly still with us at the moment.
Richard Taylor | Australia's leading private lender
Grrr dont get me started on CC.
As GOM mentioned read the thread then post any questions.
Richard Taylor | Australia's leading private lender
Martin
The cleanest way is for both of you to take out a loan secured against the jointly owned property to cover the deposit and the acqusition costs and then the partnership lends this to you/ your wife or the Trust at the same interest rate as you are being charged.
The new entity takes out a standalone loan possibly with an alternative lender to purchase the new IP.
Your mortgage broker should be able to give you some ideas and source a suitable lender for you.
Hope this helps.
Richard Taylor | Australia's leading private lender
To be honest i cannot see it happening in the near future due to the incredible exposure to high level debt.
In the UK the maximum loan is 85% and in parts of the USA it is down to 70% maximum LVR.
Not only will first home buyers loose the FHOG Boost wef 1.7.09 but requirement now is that they provide 5% genuine savings and this needs to be documentated by bank statements.
Thankfully there are still 1 or 2 lenders who dont require these but the lending landscape is certainly tightening.
Richard Taylor | Australia's leading private lender
Given this is an Australian site Rob i think your networking options are limited so i would just hang around for the cool conversations.
Richard Taylor | Australia's leading private lender
You can still get 100% + if you have other security otherwise it is max 95% at the moment.
I heard that a couple of lenders who offer 95% are reviewing policy so would expect a few changes next week to make the majority back to 90%.
Richard Taylor | Australia's leading private lender
Ok no worries.
Richard Taylor | Australia's leading private lender
