Forum Replies Created
Adam
Do you now for sure you are uanble to obtain traditional style finance?
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
You won’t find a lender lend you more than 105% unless you have equity in another property.
Some lenders will go upto 106% for Owner occupied purchases but this still incurs establishment costs etc and will eat away the additional borrowing.
If equity is not available then try and negotiate that the Vendor leaves some money in the deal and you can fund the rest i.e 80/20 or 90/10.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Regrefully because your Sale Contract has a big “SUBJECT TO” in it then the buyer can pull out if these conditions are not met.
As such any lender is going to adopt the same philosophy that it is not sold until the DA is apporved by the Council and therefore will only adopy a current valuation rather than after works figure.
Just on a spearate note you mention that a 20% deposit has been taken. Not sure about other States but in Qld anything above a 10% deposit makes the Contract an Instalment or Terms Contract and has significant legislative consequences. Check with your Solicitor that by taking a 20% deposit you have caused yourself more problems than it is worth.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Which State are you in Adam?
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
I think Stuart means 1 Day before signing the Contract not 1 day before purchasing the property which could be settlement date.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Tanya
Where are you based?
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Grant
6.89% variable NoDoc (pre 0.25% rate rise) with no ABN is achievable.
WA is fine for lending purposes.
If you have an ABN then 6.62% for Lodoc.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Lee
Spent first 9 years of my working life on the Commodity Futures trading floor for a large US Bank so i now all about S/Brokers.
Not sure if you realise that this is an Australian site and whilst many of us have investments all around the World for specific UK mortgage advice you will need a UK broker.
Happy to refer you to someone if you need a name.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi wullah
If your ATO defination was a property investor / developer then the realised gain made on the sale on development or refurbishment would be actually be considered as trading income and not capital gain.
This has its advantages and disadvatages.
For lending purposes you would need to demonstrate a regular pattern of such income i.e 2 years Tax returns and P & L Statements and then you may find that the average lender wanted to treat each application as development funding rather than a residential investment loan.
A paper capital gain made on your IP’s is not treated as income however you would be able to borrow against the valuation which would undoubtedly reflect such capital gain
Guess my question to you would be Why would you want to include it.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Danny
On most purchase contracts there is a section that relates to Default Interest.
Where no figure is inserted it reverts to the accepted Law Society rate for the State. In Qld at the moment it is 11.25% Per Annum charged daily.
All you need to is amend this figure to show an amount of NIL will be charged. Don’t forget the Vendor doesnt have to agree to the amendment.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Bec
You dont have to spend a fortune to find a good +cash flow property.
A client of mine has just gone to contract on a house in Boulder WA leased until 2008 showing 8.2% Gross Return and we are arranging a 100% IP finance.
All he is coming up with is the acquisition costs.
Even if you don’t qualify for 100% loan then 95% plus some of the Bank costs would mean very little cash input.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi trev
I will assume that you have done your research and are aware of the end value of the units as is and also once combined into 1 larger property.
Presumably you are also aware of the costs of doing the renvoation inclusive of Council costs and requirements.
Presumably there is no Body Corporate other wise is there is you may require the consent of all other unit holders to undertake a change to the Strata Plan.
If the answer is is YES to all of the above then i cannot see the problem.
Why no outsource the work inclusive of the Town Planning / Surveying work and just fund the purchase and renovation.
One concern would be the length of the lease and may mean that you would be unable to proceed further until you have vacant possession.
Other than this i cannot see a problem with why you can’t proceed.
Tell me if i am missing something.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
EB
As Terry mentions if you utilise a NODOC loan you cant get yourself in any problems.
Dependant on what LVR you are after at say 70% you should be paying pre-rate increase around 6.89%. If a lower LVR is acceptable then the rate would come down so would the set up costs etc.
Other lenders offer lodoc loans for PAYG applicants and that maybe another alternative. Usually a Statement confirming you are aware of the repayments is sufficient.
If you are not confortable with the advice being given switch brokers.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Having a partner who is a builder and does all of our projects i am spoilt. I stay in air-conditioned confort and he is outside doing all the work.
In saying that finding a builder who will want to first quote on the project and then complete the project is easier said than done.
Your standard house builder who sub-contracts everything will not be interested so it is finding a more specilised builder who is up for the work.
Tender prices will vary considerably and you really want to go get 2/3 to see how the prices differ. Rule of thumb expect to pay around $1300 / SqM for your basic block and more if you are looking for something special.
Get you prices in first before you settle on the block as the building costs could make the project unviable.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Rcently did one for a UK PLC at 70% LVR at 6.89% buying an investment property in Brissie.
Admitedly that was pre yesterday so around the 7.25% should be the go.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
I have done a few non recourse loans with Unit Trusts but these tend to be lower LVR’s 65/70% and more often on leased commercial security.
Hate to say without your guarantee they will not proceed.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hate to say that redrawing funds from your PPOR loan to be used to fund a Tax debt is not an allowable interest deduction.
Why wouldnt you establish a 100% offset account with the money and whilst it wouldnt be reducing your principal debt it would be reducing the interest charged on the debt and therefore reduce your principal that much quicker.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Having been involved in providing Vendor Finance and Wrap arrangements to clients in Qld since 1996 have done one or two.
Firstly as mentioned why do you think you need to offer the 10% Vendor Terms. Lenders now subject to the location of the property will advance upto 106% of the purchase price with 100% being available to investors.
Should you have been approached by buyer and you wish to sell at that price and feel that they are only able to obtain 90% LVR financing then maybe that is a different story.
I would strongly recommend that you protect your investment by getting your lawyer to draw up a simple of our paragraphs setting out the details of the arrangement and then you get the buyer to cover all of your costs i.e stamp duty, registration, legals etc etc. These can always be added into the loan if acceptable to you.
To ensure the buyer can service the loan you may wish to verify their income and confirm details of their employment. Then ensure that the lender the approach for the 1st mortgage will be happy that the balance of the funds are being raised by way of Vendor Terms.
Time can be lost and selling opportunities wasted when you have completed such basic steps. Some lenders and LMI will not allow the deposit to be raised in such a manner so check first.
To protect yourself consider registering a mortgage or lien against the property and also make sure that the terms offered to your buyer are reasonable and fair.
There is no point in requiring the loan to be repaid in full in say 24 months when you know there is little chance of this happening. Look at extending the term upfront and you can always agree to waive a charge or a months interest if payment is made prior to the end of the term.
Vendor Financing can and always will be a valuable tool in selling property. With interest rates having risen many buyers will find themselves unable to qualify for non conforming style finance. Stick to the basics of lending and you will reap the benefits.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
I have just completed a Development Finance deal in Vic for $8.3Million and you will be suprised at the lenders who didnt want to look at it.
It is a specialist area and soemthing that is not easily answered on the forum without a lot more information.
You appear to be wanting 65/70% of GR in a stageds loan which make life easier. Not sure as to the break up of the deal or the size or total number of lots. Do you have any pre-sales, what is your experience in this area of development and how much cash or equity are you putting up yourself.
All these questions will be important in your presentation as well as negotiating better terms and conditions with the lender.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Carl
No 42 Sq M is not a problem. It is usually 40 Sq M and under that causes problems.
In saying that not all lenders will want to take the deal on.
Happy to give you a few choices.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
