Forum Replies Created
Hi Slacker
Welcome to the forum and I hope you enjoy your time with us.
Yes it is possible to do what you are wanting but will depend on who your existing lender is.
If you want to provide a wee bit more information we can advise you accordingly.
Richard Taylor | Australia's leading private lender
It will also vary considerably from lender to lender, mortgage insurer to insurer, with some lenders will depend on whether the loan is P & I or IO and also will be a sliding scale depending on your total exposure with that lender (scale increases upto $300K between $300-500K and more than $500K).
Richard Taylor | Australia's leading private lender
It will depend on the lvr as if mortgage insurance is involved it will not be the lender decision but the insurers.
There are other options however additional information will be need to give you an answer.
Richard Taylor | Australia's leading private lender
Hi bevo
Yes i think they could have done things differently but i fear time is against them.
They are better off to settle first and then rejig things to make it work for them.
Unfortunately they will not be able to change the entity in which they purchase the property in unless they can cop the addition stamp duty and being a PPOR would leave it in their own names anyway.
Tell them to take a variable rate and then once the fixed rate on the IP expires they can look at restructuring the lot and getting it set correctly. Sounds likes a complete cross collateralised mess as it stands.
Richard Taylor | Australia's leading private lender
All i would say on the financing front is if the Title is in your name your mother wont be able to finance 2/3rd of the loan so you will both be jointly and severably liable for the entire debt.
I assume your mother has a few assets of her own and therefore serviceability will be ok but also remember your existing mortgage will be consider a liability and whilst the rent will be taken in as income you will need a fair amount of income to show serviceability of circa $850K.
Richard Taylor | Australia's leading private lender
Good to have you on board Tony.
Richard Taylor | Australia's leading private lender
Alternatively, would I be better off transferring the house to myself (higher income) and negatively gearing the full market value ($350K) and wear the stamp duty costs?
This will depend on numourous factors including: Your marginal Tax rate, the State in which the property is located, how long you intend to keep the property, likely purchase price of your new property etc etc etc.
Richard Taylor | Australia's leading private lender
Whilst you can finance some of the development costs (with the right lender) you will still need to put a fair amount of cash or equity yourself during the process.
Depending on what you intend to construct on the site will determine who will consider the application.
Also you need to think about the entity you will buy the property in as all of these matters need to be considered prior to gong to contract.
You do not break up your incomes individually and without knowing this it is difficult to comment as to whether you could actually show sufficient serviceability to fund the deal in the first place.
Further information would be required to comment further.
Richard Taylor | Australia's leading private lender
Toree
I am Director of the largest provider of Vendor Finance terms in Qld (First Home Owners Group Pty Ltd) so would be able to help answer any of the questions you or your friend may have.
However i might have a better solution for you which would save you a considerable amount. We find the deals we can offer are much more competitive than the Banks who are restricted to credit policies irrespective of what Matt tells you.
Feel free to drop me a line and I can give you and your friend some further information.
Richard Taylor | Australia's leading private lender
GOD
Be suprised how many client i have had contact me over the last few months who have nice expensive C & N Trusts and now find that they cant find a lender to finance them in this structure.
Just to go back to the original question you dont take a bond but a deposit off any potential buyer and in the default you are required to follow the same possession proceedure that the Bank would follow. If you havent wrapped before then talk to someone who has done one or two.
Richard Taylor | Australia's leading private lender
If the loan is secured against the other properties then it is still cross collaterilised and that is your problem.
CBA wont tell you an other option as it is not in their interest to do so and thats why you need to use a separate lender.
Richard Taylor | Australia's leading private lender
If you are cross collateralising (Not recommended) the securities and using CBA then you hav every little choice.
Personally I would be having this loan as a standalone loan secured against the property itself and raise the balance of the purchase price plus costs against the other properties through a line of credit.Without knowing all the details it is difficult to give you further advice.
Richard Taylor | Australia's leading private lender
Better of set up a separate 100% offset account to be on the safe side.
Richard Taylor | Australia's leading private lender
Q1 – No one structure fits all.
Are you buying positive / negative or neutral cash flow properties. If negative geared do you need to claim the negative geared shortfall. What is your marginal tax rate. Current expose to debt the list goes on.
Q2 – I am not sure you have a understanding of what a wrap is as there is no bond held in an instalment contract.
Maybe explain more and we can answer you in greater depth.
Richard Taylor | Australia's leading private lender
Yes i have a thought on both.
You wont finance them to a very high lvr so will either take up a lot of cash or equity.
Richard Taylor | Australia's leading private lender
Duckster
You are right he did but Jack Meadows got him in the end.
Certainly wouldn't happen on my watch.Richard Taylor | Australia's leading private lender
Hi Rodo
Yes at the moment 95% LVR plus LMI is still just available but it wont be long before maximum LVR will be 90% across the board.
As Duckster has mentioned the biggest problem First Home Buyers now face in obtaining finance irrespective of whether the FHOG Boost continues or not is that lenders and mortgage insurers now require evidence that you have saved over a 6 month period an amount of circa 5% of the purchase price. I.e on a purchase price of $400,000 you need to have saved $20,000 over 6 months although the total depost requirement would be $40K plus costs.
Richard Taylor | Australia's leading private lender
No duckster sorry i was posting a sarcastic post as fed up with the US scammers posting on this site.
Richard Taylor | Australia's leading private lender
Have you already applied for a pre-approval.
If so you be limited to whatever the lender you have approached can offer.
Often having the best structured loan with the lender you have your current existing banking arrangements may not be the suitable option so usually matter of selecting the loan and structure and the sdavings account and credit card can follow.
Richard Taylor | Australia's leading private lender
Might also want to get 9 months rent upfront on settlement.
It is not a question of him not having the money !!
Richard Taylor | Australia's leading private lender
