James

i can sell you one for Qld. Good enough for us to have done over 200 wrap transactions over the last 10 years so should be fine for your Qld deals.

Email me if you are interested. Also let me know details of the type of investment amount you require in your other Wrap Post.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

Funny that the Bank fully aware of your income details would then suggest a lo doc loan. Nothing like double standard in underwriting.

I am unsure whether you are self employed or employed but in either case a lodoc or nodoc loan would seem to satisfy your needs as LVR appears to be satisfactory.

Couple of things to consider:

1) Check and see as the loan is > 60% whether the lender is wishing to charge you mortgage insurance.
2) You mention you are seeking a fixed rate of interest. Why if you intend to renovate and then sell would you take a medium term fixed rate.
3) Check out the early repayment fees or deferred establishment fees on a lodoc loan.

If you are happy with the above then why not go for it. Make sure that the lender offers a rate lock facility so that you can ensure the rate quoted and the interest rate at settlement are the same.

If you are not happy with the terms and conditions offered get a broker to shop around for you as the lodoc market is now extremely competitive

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

James

No Credit License need in Qld trust me i have done 1 or 2 wraps over the years.

If you sell more than 6 a year yourself you may need a Property Developers License but they give those away in cereal packets. It all depends on how you structure your wrap.

If the Purchaser brings the property to you then that is different.

Email us if you need any more information.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

Hi Junoo

Ok your in Qld that saves me asking which State you are referring to.

Personally on all the deals i have done this way I would structure it as follows:

1) Finance Clause on the second page of the REIQ Contract – Subject to Finance satisfactory to the purchaser.
2) Special Conditions – Usually make the clause an Annexure to the Contract and would read something along the lines of.

The Vendor agrees to accept an amount equal to 70% of the purchase price on settlement with the balance being repaid over a period of xxxx.

The Vendor will charge the purchaser interest at a variable rate of XYZ on a monthly rest and calculated on a daily basis. Interest to be paid in arrears on the 30th of each month with the principal amount being repaid in full 12 months from the date of settlement.

The Vendor acknowledges that such loan will be a second mortgage and rank behind the purchasers initial mortgage.

Another thing to make sure that the 1st Mortgagee does not require you to provide evidence of sufficient funds to settle the transaction as some will not like the fact that your arranging Vendor financing.

Hope this helps.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

Nathan, do you hold the appropriate State credit license?

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

Funding should be a formality then.

With the right lender you should be paying nearly home loan rates.

Happy to help further if you need assistance.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

Hi there

You don’t mention the size of the current loan secured against the property but on the basis that you borrowed to purchase the property initially and that serviceability is satifactory i cannot see any problems in funding the development or indeed funding the relocation in due course.

Given the price you paid for the property you maybe better off to construct a dwelling on each property once the subdivision has been completed and capitalise on the rising WA market.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

“”If it’s an IP and you have had it for more than 12 months and it’s not held in a company, then you are entitled to 50% discount on your CG.””

Just to clarify the period of time you hold the asset is not the defining period but the date of the purchase and sale contracts.

You can go to Contract on the 1st January 06 but not settle until 30th June 06 and the resell the asset with a Contract date of 2nd January 07 (settling on the 3rd January 07) and still benefit from the halving of the CGT.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

Hi Tim

Regretfully the Banks and lenders are wise to those investors wishing to try and renovate and invest full time and now many institutions charge deferred establishment fees or early repayment penalties on even their variable rate loan products to counter this.

Certainly application fees can be shopped around but you have to bear in mind if you are expecting to receive a residential rate of interest then you will undoubtedly expect to end up paying for it somewhere.

A mortgage broker can help you cut through the maze of lenders out there and source out those that do not charge upfront fees, early payment fees, competitive interest rates and flexible products but bear in mind that his or her commission is clawed back in full in most cases where the loan is repaid in the first 12-18 months.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

Hi Ngai

Hope tha following answers are of some assistance:

Are there lenders who will give fixed interest rates for 10 years or more? Does this make the numbers prohibitive for a positive cashflow? A – Yes many of the larger mainstram lenders offer such rates

What exit strategies do people have for the worst case scenarios?

Never overcommit and ensure that you do your due diligence on the property to minimise tenant vacancy and a fall in price. Utilise landlord insurance

If you are using funds from the equity in your own home how do you structure the purchases of multiple homes so as not to jeopardise the family home should the investment turn sour?

A – The age old question. Put the property in the spouses name and she can lend the money to the Trust or the entity investing in the properties. Revalue your properties and increase the loan to repay the debt secured against your PPOR. In saying this you will often find that a PPOR has a lot of equity tied up in it and is most investors look to access that equity

All in all don’t over comitt. Talk to a good mortgage broker about loan planning your properties to ensure what you get meets your objectives and not his.

I

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888