Forum Replies Created
Dont want to put the dampner on your interest rate of 7.28% but it is incorrect.
Might want to be checking those loans docs again. And as Alistair stated doing on lodoc is financial suicide.
In saying that of course they would have explained that to you.Richard Taylor | Australia's leading private lender
Alistair has wrapped it up in a nutshell !!!!
Richard Taylor | Australia's leading private lender
Try Terry W from the forum here.
Wont get much better service and professionalism.
Richard Taylor | Australia's leading private lender
It happened earlier this year with HLP but hardly even got a mention.
As Simon said a loan is an Asset and can be onsold.
Richard Taylor | Australia's leading private lender
Debra
Wow straight out of the blocks and on that high horse.
1) they only charge to become members not for refinancing – I rest my case.
2) we have put 5 of our propertys into one line of credit split so that every 12 months we can revalue and take the excess to deposit on another property. to refinance 5 propertys every year to gain 20k from each property would just cost to much you would also have to many enquirys on your credit file and been a pain in the bum in general been there done that. – Thankfully your opinion is based on lending facts.
3) we also got a better interest rate because of the size of the loan saving us about $100 a week. I disagree with you there. Why not post the lender and the deal on the forum and we can all see how wonderful it is. Or is that part of the secret you are paying for.
Wayne's response to your post about X collateralising is a great explanation of why you wouldn't do it in the first place.
As for knowing that some of their consultants own IP's is this just a myth or did they show you their balance sheet.
Still go back to my original sentiment why pay to become a member of something that most decent broker would do for nothing.
Richard Taylor | Australia's leading private lender
Tall2z
Have to disagree a little.
St George securitises against 30% of its loan book and they are the 5th largest Retail Bank in Oz.
Richard Taylor | Australia's leading private lender
Frog
You say that interest rates will not effect you but Feb 08 is 7 repayments away and Sep 08 only 12 away.
Dont think you will be locking in at the current rate come expiry so will certainly have an effect.F is correct and something i have said for years we are literally drowning in Consumer debt.
Thanksfully over 40 of my IP's are now mortgage free with the others down to less than 28% LVR so an increase is just about reviewing you the rents and looking an annual increases. I know however for a lot of others a 25 BP increase will have a dramatic effect.
Richard Taylor | Australia's leading private lender
Sheilsy
Definately go the offset option.
Richard Taylor | Australia's leading private lender
I would endorse TICA.
I have just purchased a reasonable sized rent toll in Brissie and the Agency that run it for me swear by it.
Richard Taylor | Australia's leading private lender
As Terry mentions you should have got the Vendor to sign a P & C Option rather than a standard REIQ contract.
In Qld there is no stamp duty on an Option so the net amount between the flipped amount and the original amount would have been yours.
Alternative is if you purchased the property in a Pty Ltd name you could sell the shares in the Company and as long as the Company is not consider "land rich" again their would have been no stamp duty.
We use a combination of both to carry out developments and flips in Qld.
Richard Taylor | Australia's leading private lender
Personally I would never be paying down a investment property loan whilst i still had a debt on my PPOR.
Suggest you restructure and convert the IP loan to interest only and the PPOR to P & I or IO with a 100% offset. By paying off your PPOR debt quicker this will not restrict your ability to borrow for your next IP.
Might want to avoid Cross collataralising the loan though as this will cause you problems in the future.
Richard Taylor | Australia's leading private lender
Barney
GR loans have nothing to with the fact that GST is payable on the end product and a merely a mechanism to finance a development on value and not cost.
GST is calculated on the end sale price or margin price dependant on the project and has nothing to do with how the deal is financed.
Richard Taylor | Australia's leading private lender
Carrying on from my earlier post some borrowers maybe interested to know that St George Bank securitises some 30% of its residential loan book which is 4 times greater than the Big 4 Banks.
The risk is the end market buying these loans and now partially dried up and is also demanding a higher rate. This will affect all securitised mortgage players especially the new entrants to the market such as Rate Busters, Beat Home loans etc etc. If they are unable to sell of the loan books they will need to keep them on their balance sheet which could restrict their ability to make new mortgages.
Richard Taylor | Australia's leading private lender
If you would go as far as the Northern Gold Coast can certainly put you in touch with the best Property Accountant going around.
Shoot me an email and I can give you his details.
Richard Taylor | Australia's leading private lender
Would need further information to be able to make any meaningful suggestions.
Richard Taylor | Australia's leading private lender
Unlike the USA most loans through the retail banking network are not securitised in Oz.
Certainly as Ben has pointed credit in the US is drying up. Wells Fargo raised the rate on a $425,000 loan from 6.78 to 8% overnight with a 20% downpayment. Nodoc, lodoc and zero down loans have disappeared completely with full qualification full doc loans now rising at a rapidly rising rate. IndyMac reported at the weekend that the secondary loan market ended overnight.
Here we have seen over the last few weeks a rapid tighting of mortgage insurers policy when it comes to cash out and Nodoc /lodoc policies as well as a general tightening of credit policy.
Richard Taylor | Australia's leading private lender
Oh well Hutch is good aly isnt he.
Richard Taylor | Australia's leading private lender
There is no punchline !!
If your broker isnt performing look in the yellow pages as they are dime a dozen some even have more than a years experience.
Richard Taylor | Australia's leading private lender
Why not just pay cash for the property and then worry about the financing after settlement.
Richard Taylor | Australia's leading private lender
I cannot see a problem with the information you have provided.
Richard Taylor | Australia's leading private lender
