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There are a few lenders who will do a Nodoc loan for expats without any proof of income but you are more likely to be limited to 70% LVR.
Richard Taylor | Australia's leading private lender
Cory
Funny spoke to him earlier this week as we have just had another loan approved for a client of his buying over there and no problems then.
Now if you had problems with another forum advocate of San Antonio and Buffalo then i could understand why.
Richard Taylor | Australia's leading private lender
Cory
I am sure there is 2 sides to every story. Maybe Chad will post a response.
I know i have financed dozens of clients in the US that have purchased through Chad and are very very happy.
Richard Taylor | Australia's leading private lender
Matt
It is all in the manner in which the loan is structured.
Normal course of events would be as follows:
1) Establish a Line of Credit against your PPOR to a level of say 80% of the property value.
2) Draw down 20% of the IP purchase price from the LOC plus acquisition costs.
3) Take out separate uncrossed loan against the security of the IP only for the 80% balance. Usually interest only loan.
Where you have no non tax deductible debt a 100% offset account can be linked to IP loan to save further interest.
A good mortgage broker will be able to structure this correctly for you.Richard Taylor | Australia's leading private lender
The Stamp duty payable on the Transfer is added to the Cost Base of the property when you sell it.
The Stamp duty payable on the Mortgage is deductible as a loan cost over a 5 year period or the term of the loan whichever is the shorter.
Richard Taylor | Australia's leading private lender
Wow stop right there Zayne.
I must admit one of my pet hates is unqualified Bank staff providing Tax or Financial advice.
Whilst you are able to claim the interest for an IP the method of raising the funds is the important issue.
Certainly do not use a redraw facility and if the Bank suggest that you cross collaralise the loans steer well away.The simplest way of structuring the loan is to cancel any advance repayments on your PPOR and then take out a separate loan which you can use for the deposit and then have a standalone facility secured against the IP itself.
If you have a problem with your lender then get your mortgage broker to take the loan away.
This day and age carefully structured loan planning is something the major Banks give little consideration to as the staff are not qualified so a good independant broker should be able to put you on the right path.
Regretfully you certainly cannot claim the interest on a redraw loan hRichard Taylor | Australia's leading private lender
Moose
One of the downsides is the interest rate charged by the 2nd mortgagee.
As their risk is higher the interest rate is higher. Most standard lenders dont like taking a 2nd mortgage behind another Bank and those who do will not go past 90% LVR.
All depends on what you are after. I have many clients who are looking for a 90-95% Lodoc and are happy to take a 10% secured personal loan at say 16% on a small portion of the funds rather than pay a higher rate on the total amount.
Richard Taylor | Australia's leading private lender
Hi Zayne
Mortgage Insurance is claimable as it is a loan cost over 5 years or the term of the loan whichever is the shorter.
Shop around as many lenders offer an alternative to LMI which can often work out cheaper.
Richard Taylor | Australia's leading private lender
The 3 main franchise lenders in Oz will not lend more than 70% LVR of the purchase price and all each case require a Guarantee from the purchaser or owner of the franchise.
Non recourse loans maybe acceptable in Commercial cases where the lender can assign the rental income but again the LVR is extremely limited.
Richard Taylor | Australia's leading private lender
What LVR can Australian Citizens borrow in Dubai for Commercial property Paul ?
Richard Taylor | Australia's leading private lender
I certainly agree with Simon but would also say that i have also had a couple of other valuations back from client buying in Springfield in the last couple of weeks which have come in a little lighter than the purchase price.
Who was the valuer. ?
Richard Taylor | Australia's leading private lender
Might want to check the forum rules before placing blatent advertising.
The forum is here for the sharing of information and to help others not to merely flaunt services or product.
Richard Taylor | Australia's leading private lender
Moose – Bang on it is just that a Myth.
Assuming we are talking about a private company no lender is going to lend to an entity whereit potentially could have zero security. As soon as the company sells down or disposes of its assets and is unable to pay its debts the Directors can merely walk away with no recourse.
Richard Taylor | Australia's leading private lender
Another paid Ad is trust.
Richard Taylor | Australia's leading private lender
Ben
No you are right and I believe Steve has clarified this and accepted this in his later publications.
Richard Taylor | Australia's leading private lender
Jason
4 units and above is the magic number as with anything over 4 you will not be able to get LMI.
Max LVR on 8 is probably 75% of purchase price (80% maybe possible at a stretch but interest rate will be higher) and 75-80% of renovation costs subject to a maximum of 65% of GR.
I have developed and strata titled over 50 blocks in Brissie over the last 12 years from 4 packs to 24 units in New Farm so know the strata market pretty well.
If you have good equity in other properties that can support 100% LVR then this can be used.
Richard Taylor | Australia's leading private lender
You wont get 100% finance for a development.
Normal max would be 80% of land value and 80% of development costs subject to a max of 65% of GR.
Sure you can go higher with an element of Mez but the interest rates are starting to climb and the profitability fall,
Richard Taylor | Australia's leading private lender
On the downside financing them could be an issue unless you have a few pre-sales.
Most development lenders will go to a maximum of 80% land value + 80% of cost subject to this figure not exceeding 65% of end valuation. For a virgin developer you will need a fair bit of equity in other property or be prepared to put in cash.
Richard Taylor | Australia's leading private lender
Just bear in mind from a financiers perspective the increased rent by way of a lease to a mining corp or similar is not the figure that is considered for serviceability but more often the likely rent in a normal market as suggested by the Banks valuer.
In many cases i have seen the lender shave the rental figure they use (especially if the loan requires mortgage insurance) due to the inflated demand for property in certain regional areas.
Also bear in mind that the value will be reduced if it is furnished as leners down consider the furnings as an asset.
Richard Taylor | Australia's leading private lender
Loiuse
There are many lodoc Commercial loans available at comeptitive interest rates and would certainly be preferable to take some debt against the security you are buying rather than using up all of your equity from your residential properties.
Most lodoc loans will go to a maximum of between 70-80% LVR (I appreciate that 95% lodoc is available) and lodoc commercial is not too disimilar.
Richard Taylor | Australia's leading private lender
