Forum Replies Created
Angela
Before you jump into the lodoc market dont give up on a full doc loan.
With the anticpated rental income we wouldnt be a mile away.Drop me another email and I can point you in the right direction.
Richard Taylor | Australia's leading private lender
A Deposit Bond is a guarantee provided by an Insurance that in the event that you do not settle the Vendor wil receive his deposit (usually 10% of the purchase price). You pay a premium for the Bond and it is held by the Vendor until settlement.
I wouldnt touch RHG either but wonder how he is going to get you a 100% + loan without doing so as RHG will not allow for a
2nd mortgage to be registered behind them.Rachel sorry dont start me on issues of Cross collateralisation and Banks.
Saw a lady yesterday from the forum here who had experienced the issues of just this.
Your MB will explain to you the negatives.
Richard Taylor | Australia's leading private lender
ABC
What night is the program being aired.
Richard Taylor | Australia's leading private lender
In most cases the costs are borrowed and included in the loan amount however the biggest mistake most small investors make is that they listen to their Bank who of course actively encourage them to Cross Collateralise both loans (normally because they now little alternative).
Rachel, whilst you have finance pre-approval make sure that the loan is structured the way in which you want it (separate loan on each property and not 1 property cross supporting another one). if you set it up correctly you should have access to a deposit even if you have not gone to contract on the 2nd IP.
Also another reason for not Xing the 2 properties together is the higher mortgage insurance premium.
Richard Taylor | Australia's leading private lender
My own small portfolio of 45 properties here in Brissie seemed to have be acrued ok with the boring old offset linked to the IP loan.
But maybe at 43 i am old fashioned.
Richard Taylor | Australia's leading private lender
In saying that before last Tuesday we were getting 0.8% off the SVR rate with SGB on the right size loan but must admit we do a fair amount with them each month.
I am not convinced CBA offer will last much longer given the other majors are starting to tighten.
Richard Taylor | Australia's leading private lender
If the agent or vendor is insisting on a deposit ask them whether a Deposit Bond will be acceptable.
Your mortgage broker should be able to organise this for you.
Richard Taylor | Australia's leading private lender
Hi Trance
I wont comment on the type of investment as Marc has succinctly point out the pluses and minuses of such an investment.
With regards to the Deposit Bond Guarantee this will not be offered by a Bank but an insurance company who will issue a Bond Guarantee that in the event that you do not settle the Vendor will receive payment. You will not be requried to pay the 10% deposit but merely demonstrate that you have the capacity to settle for which the Insurance Company will charge you a one off premium.
There are a limited number of Insurance Companies that offer such Bonds so feel free to drop me an email with details of the property and the deposit amount you need to show and i can work out the premium for you.
Richard Taylor | Australia's leading private lender
Only way to do this is to lodge a Transfer document with a change of name.
In saying this I would be very careful in doing so as it will trigger a Stamp Duty payment as well as possibly a Capital Gains issue. You will also require the consent of the lender who will probably want to reassess the deal given your father will be a prty to the loan and will want to consider his income, asset & liability position.
There are easier cleaner ways for him to be involved so think carefully before you go down this route.
Richard Taylor | Australia's leading private lender
Hi Cabo
Short answer is Yes you would. Although as i mentioned obtaining a LOC to 95% maybe harder that it looks these days.
Richard Taylor | Australia's leading private lender
Transferring any property into a Trust Structure or any other entity for that matter will have both a Stamp Duty and possible CGT implication.
Whilst there are numerous benefits for wanting to hold property or assets in general in Trust you need to weigh up exactly what you are trying to achieve first so that a clear plan of progression can be mapped out.
Feel free to ask any particular question and we can all try and answer it for you.
Richard Taylor | Australia's leading private lender
I am with you Andrew i didnt understand a word of that.
I fail to see why in the world you want a offset account within a LOC but each to there own.
Richard Taylor | Australia's leading private lender
Pleasure Jodie.
Richard Taylor | Australia's leading private lender
I would have tried to split the loan back to the original balance you used to purchase the new property and then a separate loan for the rest.
If you had some equity in the original purchase price (and on the basis that the loan did not exceed the original purchase price) then you might get away with some consolidation however cleaner to start with a fresh lender rather than have loan statements that show a redraw or refinance in them. Make the original loan Interest only and the non deductible part P & I and link the 100% offset account to this loan.
Drop me a line if you need any other clarification.
Richard Taylor | Australia's leading private lender
Jodie
Mhhh sounds like a wee bit of a mess to me.
I think you probably need a bit of overhaul there but certainly if you use the available equity in the house do set it up as a separate standalone account.
Richard Taylor | Australia's leading private lender
Hi Paul
Not so common these days but yes you maybe entitled to a refund of the mortgage insurance paid.
It will vary from lender to lender and usually the maximum refund would be 40% of the initial amount paid.
Quick call to the Bank and they can tell you what you can expect to get back.
Richard Taylor | Australia's leading private lender
Hi Cabo
It is funny it is the most popular question we get asked at the moment "how to structure my finance" ?
In essence the ideal way is as you have described however obtaining a line of credit to 95% is not as easy as it sounds in the current climate.
If you wish to drop me a quick email with some actual figures I would be happy to give you some constructive advice on moving forward.
Richard Taylor | Australia's leading private lender
Digian
Drop me an email and I might be able to help you with a copy of Trust magic.
Richard Taylor | Australia's leading private lender
Tim
You are correct any Broker operating in WA needs to hold a State Credit License (which of course thankfully we do).
Chelsea is looking at a R40 block which can be strata titled into 4 lots in WA.
The loan would be done as a small lot development and i must disagree with you that most commercial funders are shying away from WA. We have recently completed a couple of decent sized loans for clients in Perth and had no issue with the particular lender.
Richard Taylor | Australia's leading private lender
Smain
Thanks for your email, glad we could have been of assistance.Richard Taylor | Australia's leading private lender
