Forum Replies Created
Irrespective of the LVR the way that you structure the loan is more important.
Many new brokers who are not property investors themselves do not understand the mechanics of cross collateralising loans and the potential long term problems this course of action could cause.
Richard Taylor | Australia's leading private lender
Nick
Without commentating on whether the deal is financially sound all i would say is Bardon is a great suburb and you will struggle to find anything for less that $500K there. I am in Chapel Hill next door and nothing sells for those prices there days.
If she is happy for you to buy it at $500K i dont think you can go too far wrong.
Richard Taylor | Australia's leading private lender
I totally agree they can be both.
I just have to wear a different colour beanie.
I must admit i have dozens of expats clients living everywhere from Asia, USA, UK and 1 couple in Finland.
Richard Taylor | Australia's leading private lender
What is the security you are looking to refinance.
If all stands up should be a piece of cake.
Richard Taylor | Australia's leading private lender
Sorry Elka
Was actually away on holiday so missed this one.
Reading the responses i think Simon has hit the nail on the head.
Richard Taylor | Australia's leading private lender
Your Mortgage Broker should be doing the job for you.
Richard Taylor | Australia's leading private lender
Nodoc loans are actually available to 80% without any evidence of income.
Richard Taylor | Australia's leading private lender
Hi ARP
You are half way there.
There is nothing stopping you taking out a new loan to say 95% LVR on your home by way of a LOC and as the property value increases and the debt reduces utilising the new equity available for share or investment purchases.
As this would be a separate LOC to your main home loan you may need to have the property revalued to show the increase in equity and also be able to demonstrate sufficient income to support the increased borrowing.
A bit of documentation and you are there.
Normal mortgage stamp would apply to the increased borrowing.
Richard Taylor | Australia's leading private lender
Hi Jason
As Alistair has pointed out Development funding is a wee bit different to the standard house construction.
You are probably looking at a max LVR of 80% of the land value and 80% of construction costs subject to a max of 65% end value.
If you intend to retain the units after completion you will need to show an exist strategy to meet the serviceability criteria. Pre-sales are an alternative if you wish to keep some and off loan others.With that sort of loan amount you will need to have solid equity and income and a good fixed price contract from a repudiable builder.
In saying all of this having developed and built over 100 units / tonwhouses in Brissie in the last 10 years it is well worth it with the right project.
Richard Taylor | Australia's leading private lender
Hi Abbruzzi
Just back from 2 weeks holiday away so havent posted for a while and will get straight back into it.
When i first arrived in Australia in 1993 i spent a year as SGB lending manager here in Qld. Even then the old blanket loan trick promise we are not cross collateralising was being worked and is a complete ruise.
I assure you that the Bank will be taking both properties as security under their portfolio product even if they are split into separate accounts.
Paying LMI is not such a bad thing and is often a cost of investing and moving forward. If you dont wish to refinance or restructure your existing loans then look to take out a new IP loan on the new property on a standalone basis.
In saying this if SGB won't allow you to operate a LOC as the way it should be I would be giving them the big flick.
You can do better !!!
Richard Taylor | Australia's leading private lender
Angie
Just to correct you.
Many lenders will advance 80% on the islands.
You are right you will not get LMI but i have done many deals at 80% of valuation
Richard Taylor | Australia's leading private lender
Not sure where you get the Statement "Finance is too difficult using a Trust"
You should be able to easily get 95% and even 100% funding using a DT /HDT or even a UT structure with the right lender.
Richard Taylor | Australia's leading private lender
Ducksters post is only relative if you purchased the property as Joint tenants or as Tenants in Common using a 50 / 50% shareholding.
Any other combination of share would aportion the capital gain accordingly.
Richard Taylor | Australia's leading private lender
Liana
I think i would be looking at another broker with sort of limit advice.
Each lender has its own serviceability model and takes certain elements of income and expenditure into consideration.
The trouble with some brokers is that if you dont fit their niave CBA model they dont want to become creative and look further afield.
Richard Taylor | Australia's leading private lender
Shergar
There is only 1 and he is the best.
Try Steve Hodgkinson who is a partner with the Gold Business Group at Southport.
Steve can be contacted on 5532 2855. He has been my Accountant for nearly 13 years.
Tell him i referred you as most good Accountants are not taking on new clients.Richard Taylor | Australia's leading private lender
K
15 units you would be able to get 80% with Anz and many others.
Richard Taylor | Australia's leading private lender
85% – For Nodoc / Lodoc -95%
Richard Taylor | Australia's leading private lender
3 units on 1 titles would be considered residential.
Wouldn't get LMi on it but 75% would be a standard lend. Could easily be done as a commercial at residential rates.
Richard Taylor | Australia's leading private lender
The terms of the Lease Option will need to be documented by your Solicitor and the monthly repayments will be geared to the Contract. It will depend on whether you are offering a straight Lease To Purchase or whether you are inclusing a balloon the end payment.
Your Solicitor should be able to help you word the document up accordingly.
Richard Taylor | Australia's leading private lender
Vendor Financing is where the Seller or Vendor provides some form of finance during the sale transaction.
This can take many forms from a personal loan and 2nd mortgage carry back to a full installment contract with the entire debt being funded.
Richard Taylor | Australia's leading private lender
