Forum Replies Created
Jaffa
I am sorry to hear about your BIL's illness.
Have a look at Superanuation policy as some of these include a built in Trauma cover which could mean he could be entitled to a lump sum now to ease the financial burden rather than having to wait until he passes away.
Richard Taylor | Australia's leading private lender
Carln
Other lenders have alternatives to LMI which may prove cheaper and allow you to go to 90%.
Richard Taylor | Australia's leading private lender
Daniel
With many lenders the fact you are borrowing in a Trust structure with a Corporate Trustee makes no difference to their lending policy and 90 or even 95% LVR is achievable.
Obviously this is not the case with every lender.
Richard Taylor | Australia's leading private lender
TWIMI
Dont worry about the time difference i just got off the phone from a client in the UK so now all about time difference.
Your Bank will need to consent to any subdivision and will want their legal department to run over it.
Remember once the subdivision has been approved you may not get separate Title to the property (Many Councils require the construction to have been complete before they agree to this) and even if you do again CBA will want to approve this and will need to show that their mortgage subject to valuation is registered on both securities.
Who mentioned financial strangalation ………
Richard Taylor | Australia's leading private lender
Albert
I think we all accept that many inexperienced Brokers or Bankers have absolutely NO idea when it comes to Trust structures and the reason why they are used however think you will also find many more experienced lenders are moving away from lending where certain Trusts are involved directly as a result of ATO rulings.
I talk with Senior credit guys daily and more and more are being swayed by legal opinion.
Richard Taylor | Australia's leading private lender
I got also got it and appropriately deleted it.
Richard Taylor | Australia's leading private lender
ecl
Sounds like you are an Anz customer to me.
There maximum LVR is 90% inclusive of LMI. Plenty of other options out there.
Richard Taylor | Australia's leading private lender
Or indeed most
Richard Taylor | Australia's leading private lender
I think most lenders will look for the 20% equity in existing property for 100%.
No not all.
Richard Taylor | Australia's leading private lender
Being from Qld i can't comment on the areas but if it is anything like some of the cheaper suburbs in Brisbane these have the been ones that have risen in percentage terms better than some of the higher prices properties on what is considered a better suburb.
At the prices and rents you have mentioned the properties appear to be neutral or even positvely geared even at 100% gearing.
Why not look at borrowing 100% of the purchase price of each and acquire 2 of these as they will just about be self funding.
Richard Taylor | Australia's leading private lender
Hence consideration needs to be made before you start trying to claim the property as a Home Office etc.
Richard Taylor | Australia's leading private lender
Morning TWIMI
Firstly welcome to the forum and I hope you enjoy your time with us.
CBA Colonial are like most lenders where the opportunity arises they will jump in feet first and cross collateralise every loan going. All sounds good when you sit down for coffee in the local managers mini office and he or she tells you the virtues of using them as a lender. Somehow they just seem to forget the bit about how we have you tied up for ever and woo betied you if you ever try and leave us.
Your situation is like so many clients i have seen before where now the Bank calls the tune and you like the fable state merely follow behind.
The initial property IP 1 is a fixed rate loan and therefore given the current rate of interest and potential break fee would not suggest you mess with this. In saying the security we can use to free up some additional equity on IP and allow the Bank to have this standalone.
IP 2 is a different matter and being variable would mean that you could look to refinance this and free up your equity.
Subdividing the security is one thing but you need to check that the local council will actually allow you to obtain a separate Title as this is the bit that will enable us to gear against to construct the new security.
Whilst a Gross Realisation loan would be achievable on a commercial development whilst the security is residential we will be limited to construction costs. No real drama given the increased land value and overall security.
Obviously there are a couple of other bits of information missing from your scenario but all in all doesnt seem like an unsummoutable problem.
Richard Taylor | Australia's leading private lender
You would have thought had it been that much of a bargain the agent would have declared his interest and purchased the property himself.
Think you are wise to look elsewhere as there are bargains everywhere at the moment.
Richard Taylor | Australia's leading private lender
As i say under a 60% LVR there should be no problem anyway.
Richard Taylor | Australia's leading private lender
If the property is wrapped your partner will not receive the FHOG at settlement even if she is not classified as your Defacto.
Richard Taylor | Australia's leading private lender
Funded the odd RH which had been purchased by a specialist firm who were contracted to provide such services but as Terry mentioned doing yourself forget it.
Better investments out there.
Richard Taylor | Australia's leading private lender
Cazz
I hope the Bendigo didnt just do a credit search after your telephone conversation but indeed got you to make a full written application and all signed Privacy Act Authority.
I am sure the previous Banks did a search on all 3 parties however it just depends on how Veda process the enquiry.
As mentioned you should get your mother in law to order a copy of her Credit Report so that you will now once and for all.
Richard Taylor | Australia's leading private lender
Cazz
I hope the Bendigo didnt just do a credit search after your telephone conversation but indeed got you to make a full written application and all signed Privacy Act Authority.
I am sure the previous Banks did a search on all 3 parties however it just depends on how Veda process the enquiry.
As mentioned you should get your mother in law to order a copy of her Credit Report so that you will now once and for all.
Richard Taylor | Australia's leading private lender
As Terry has mentioned the matter is fairly complex and you should see Professional legal and Financial advice.
If you have recently purchased the property as your PPOR you probably qualified for a stamp duty concession and the FHOG.
Selling the property into Trust or similar may mean that these have to be repaid if you have not lived in the property for the required period of time.Another question is WHY would you want to do this.
Would you not be better off to start again with a new investment property purchased in either all 4 names or with 4 Unit holders.
Richard Taylor | Australia's leading private lender
You could always sell it into a Trust with you as the Trustee.
Stamp Duty would be payable but subject to the LVR could be deducted from the loan.
You wont get more than 80% lodoc at the moment.
Richard Taylor | Australia's leading private lender
