Forum Replies Created
Jason
Sure subject to income you could go back to both of your current lenders and ask them to look at taking the loan upto 90% LVR and then use the funds elsewhere.
Still a few lenders who will 95% lvr so all depends on the purchase price whether you would have sufficient.
Richard Taylor | Australia's leading private lender
Hi Gomez
Couple of points.
If you are ahead of your repayments it sounds like the loans are of a P & I nature rather than Interest only. = Not recommended.
To combine the 2 loans into one will mean cross collateralising the securities which again is not a favoured strategy.
You would be better off keeping the loans totally separate linking the offset account to one of the loans and using a split facility to identify the interest on each property.
You can certainly gear up to 90% lvr (subject to the lenders conditions) with a split loan and use the raised funds as deposit for your next IP.
Of course utilising the offset account assumes that you have no non deductible debt.
Hope this helps.
Richard Taylor | Australia's leading private lender
Regretfully Yes you are dreaming.
Why dont you use some of the equity in the 2 properties. 100K would go a long way to providing a deposit or two.
Richard Taylor | Australia's leading private lender
Hi both
There is no time frame to stop you purchasing again immediately subject to the usual income, equity and deposit requirments.
Not sure how you structured the first loan but we normally have our clients purchase using an interest only with 100% offset account and then get them to put their First Home Owners Grant and deposit into the offset so they can immediaely purchase again.
Richard Taylor | Australia's leading private lender
Love the use of caps.
Sorry Steve and you are who ?
The open door policy is not quiet true.
I have clients who signed a purchase contract subject to finance (which i managed to get declined as the property was $55,000 over priced according to the local agent and Bank valuer.) and the following day phoned PF to tell them they would not be going ahead.
The PF recommended lawyer charged them $800 from the $1000 deposit when he hadnt even open a file and they were charged half of their once for a lifetime PF fee for some fancy graphs and paperwork.
Thankfully they have subsequently purchased through me 2 under valued properties which we have already had revalued at a higher valuation in 3 months and hasnt cost them a penny.
Just wondered why you feel the constant need to push their services. Is business getting tough ?
Richard Taylor | Australia's leading private lender
Nate
Many lenders subject to LMI approval will go above 80% LVR.
It all boils down to the security being offered and you the applicant.
Richard Taylor | Australia's leading private lender
Bank West will not do a lodoc construction deal in the manner which is required by the propertylearning.
Richard Taylor | Australia's leading private lender
Business loans are not as easily available as they were and will depend on the business itself.
Many lenders now require property security unless the property is a franchise.
Horses for course.
Richard Taylor | Australia's leading private lender
Business loans are not as easily available as they were and will depend on the business itself.
Many lenders now require property security unless the property is a franchise.
Horses for course.
Richard Taylor | Australia's leading private lender
Business loans are not as easily available as they were and will depend on the business itself.
Many lenders now require property security unless the property is a franchise.
Horses for course.
Richard Taylor | Australia's leading private lender
Racheal Do you qualify for the First Home Owners Grant ?
Richard Taylor | Australia's leading private lender
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Richard Taylor | Australia's leading private lender
Terry is right pay down the non deductible debt first.
If however they do not have any personal debt and they dont need the Term Deposit interest to live on then why wouldn't they place the Term Deposit funds into an offset account.
The effective rate of interest will be a lot higher than they are currently receiving and they still have immediate access to their money.
Unfortunately CBA do not offer a fully transactional offset account whatever they tell you so would need to consider going elsewhere.
Depending on the current rate of interest the change could benefit in more than one way.
Richard Taylor | Australia's leading private lender
Hi Chetnik
Nothing to stop you taking out a 95% IP loan sitting the balance of your savings in a 100% offset account and then using the savings plus your First Home Owners Grant as deposit when you find your own property down the track.
Richard Taylor | Australia's leading private lender
Hi Deano
Firstly where possible do not use your own cash as a deposit whilst you still have a non deductible home loan.
You are better off to borrow the money so that the interest is tax deductible and use any surplus cash to reduce your non deductible debt. There are a couple of ways to do this.
Utilise where possible the equity in your property to fund deposits and acquisition costs and then have each new investment loan standalone on the purchased security.
You are able (with certain conditions) to borrow upto 100% of the investment property purchase price and therefore would only need to cover your purchase costs such as stamp duty, mortgage insurance etc etc.
There are a couple of other strategies could can also employ such as Vendor financing however obviously the seller may not be prepared to offer such a facility.
Structuring it correctly from day 1 will help you move forward quickly and with less problems in the next deal.
Richard Taylor | Australia's leading private lender
No dramas Deano you now where we are lol.
Richard Taylor | Australia's leading private lender
Dan has the nail on the head.
Regretfully no deductible interest by using the security and raising funds hence the suggestion of selling the property into Trust.
Richard Taylor | Australia's leading private lender
Hi Michael
Yes the amount you mention should be sufficient to cover the deposit and costs.
Probably the way forward would be to put in a limited amount of deposit (Yes i accept you will incur mortgage insurance) but link the loan to a 100% offset account. I would look to take the loan on an interest only basis to give you maximum flexibility.
Stick anything over 5% deposit into the offset account and not only will you save you interest but will also have flexiability in case you have a need for the funds down the track.
Rather than contribute funds as part of the deposit (Although if they do this there is no problem in them obtaining the FHOG down the track) they would be better off to merely place the money in your offset account.
Hope this helps.
Richard Taylor | Australia's leading private lender
Agree with Terry keep things separate and simple.
There is one Financial Planning franchise doing the rounds that recommend a big line of credit against of your securities and all you do is simple increase the limit once the properties rise in valuation.
This is fraught with issues and certainly could not recommended by me.
Richard Taylor | Australia's leading private lender
Would need actual purchase and construction figures to make a comment of to whom you could approach to consider it.
Richard Taylor | Australia's leading private lender
