Forum Replies Created
Elka
Hate to put a dampner on your fiance’s ideas but i just agree why you would take a Honeymoon rate initially unless there was a reason for it.
With the 5 major lender and i assume that your fiance works for one when you say a popular Bank there is a early repayment penalty if the loan is repaid within the first 3 years. This makes the rate unattractive.
In addition most of the basic variable products are only slightly higher than than the honeymoon rate and if you are using a Pro Pack then you will be able to take up a a rate which is upto 0.8% less than the SVR.
Many Fixed rate products allow additional repayments upto a given amount each year and also several lenders allow you to link a 100% offset account to a fixed rate product with no maximum deposit held in the account. (other than the loan balance).
Not sure what section of the Fin Review you are referring to but would be happy to hear so we could clarify when they predict the rate increase is going to happen. Perhaps the Bank’s haven’t heard yet as the medium term fixed rates havent yet gone up accordingly.
To structure your loans using a honeymoon rate is niave to say the least. Banks love customers like you who believe that a lower rate of interest initially will save them over the long run. Why do you think so many retailers offer interest free credit on their items on the basis that they make their money after the IFP has expired and the full rate of interest comes into effect.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Must admit i went on to Cannex Web Site and then clicked on the 2 main lenders that offer NODOC loans and there is no mention of the product on either site.
Difficult to now who to ring if you can’t find out the information in the first place.
Many lenders do not advetise the facility of NODOC lending it is just available.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Jason
Assume you are referring to a finance broker who has some idea about structure rather than a financial planner.
This day and age most deals are done across the internet so you dont have to sit down and take hours explaining what you want but can take your time put it together on email and send it around the Country.
As long as you use a broker who is able to process a loan for you in WA and I imagine most of the guys here are able to do so then you should get some good free advice.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Sue
Like Dazzling you are in an excellent position equity wise.
Many lenders however will take advatantage of an application for a Commercial Loan and charge a higher rate of interest and establishment fee.
Depending on what you are looking for from the investment and from the numbers you have given you should be able to borrow the full 100% of the purchase price plus acquisition costs and a rate sub 7%. Establishment costs and set up fees will be realtviely minimal.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
H & R
No not really 70 – 80% LVR is similar rate of interest, set up costs etc.
Some good deals around depends on so many other details.
If you can get away with Lodoc then you might save 0.5% and a few $$$ fees.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Must admit Todd i couldn’t see any details on the NODOC loan on the Cannex website.
Sure i cam across a load of comparison information on interest rates but not product specific details as H&R was asking for.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
As a Company we have always sourced our purchasers first and then let them find their own homes so this takes a lot of time out of property sourcing.
In regards to the on-going managment i guess as Paul states it depends on how many you have under Wrap. With still 160 properties owned by the Company I own we employ 2 full time ladies to deal with the day to day running of the business and the collection and managment of each property.
Each to their own i guess and how involved you want to be now and in the future.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Ekam
100% offset facilities are also available on fixed rate loans.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
We use a spreadsheet for our clients however this may help you achieve what you are after
http://www.infochoice.com.au/modules/distribution/10346/extra_repayments.asp
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Maia
Dependant on which State you are there in no Stamp Duty payble on a Call Option Contract in most States. WA maybe an exception.
With a standard Flip you would not take ownership of the property but assign for a fee the right to enter into a contract to a buyer who pays Stamp Duty on the executed Contract price.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Have a look at somewhere like Kenmore which is a Western Suburb and has lots of opportunity.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Tanya
Also make sure that you get the ABN in the entity in which you intend to trade.
There is no point in registering an ABN in your own personal name if you buy your first property in a Company or Trust name that has no ABN.
Also bear in mind that many lodoc lenders will not consider Company or Trust applications so you might need to shop around.
Easiest thing to do is to build in the monthly interest into the loan so that you are not required to come up with it each month. Whilst it may sound attractive to claim that the property is a PPOR for CGT / Stamp Duty point of view but again bear in mind many lodoc lenders will not offer lodoc / nodoc loans on anything but investment property purchases.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Yes many lenders run a mile when you mention serviced apartments however in saying this dependant on the terms of the lease agreement 80% would certainly achieveable maybe more.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
If you have any non tax deductible debt at all then this is really the only way to go for an investment property loan.
If you are thinking about a long term buy and hold then consider a medium fixed rate of interest product. Many lenders are offering attractive deals with minimal fees.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Tracey
It all depends on a variety of factors and your own position regarding any non tax deductible debt.
If you want to take this off the forum and give me some further details i would be happy to point you in the right direction.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Mat
Many Builders do this as a way of a sales tool to sell their new homes off the display and you will probably find on most estates builders are selling such homes.
Just a couple fo things to bear in mind:
1) Check to see the rent is not inflated so that when the Builder moves out you can still achieve a similar rent or a rent you are confortable with.
2) The Builder ensures that when they move out the property is either re-carpeted or allowance made as with 100’s of potential buyers walking through each weekend you will find things deteriote easily.Guaranteed rent maybe all well and good however it may come at a cost. Alternative investments may be just as good dependant on your experience and what you are looking for from an investment.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Tracey
Must admit structuring your IP loans is probably one of the most important parts of setting up your Investment Portfolio.
My preference is to bolt a LOC to your PPOR and then use this to draw down for deposits and costs and have the IP loans stand alone on an interest only basis.
In saying this there are a few provisos:
1) The rate of interest on the LOC is not more than normal and you are not paying for the flexibility.
2) There is no charge for the funds sitting their dormant.
3) You have equity and are able to go to 80% LVR on your Investment Properties. if this not the case 90/95% maybe necessary and then you will incur LMI.
4) Overal serviceability is imprtant as there is no point in setting up a fancy structure and then finding you havent the income to service the proposed loan and would have done things differently had you known.I guess the main thing is to get a mortgage broker to go over your figures and make some suggestions on structure, lenders and the rates of interest as well as what you want or require now and in the future. With the availability of Pro Packages these days a preferable rate can be negotiated as well as a waiving on the application costs and other services.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Regretfully we don’t step out of sunny Qld but Paul Dobson down in Newcastle might be able to help.
I now he is a regular contributor to the forum.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
It obviously all depends on the standard of the fitting you are including but rule of thumb would be around $1400 / Sq M.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Regretfully you are not the only person i have come across who has had issues with Genesis.
Why not contact Chad Simmons at http://www.gr8realestateinvestments.com who is Melbourne based and has just come back from another successful visit to NY and TX.
Working on the release of our 2nd REIT with Chads Clients and he can give you both the good and the bad of investing in the US.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
