Forum Replies Created
Hi Dobby
The max limit on the SGB No deposit loan is $600K and they will not go past that. Certainly you can come to an arrangment with the Vendor to purchase the chattels separately but obviously will end up paying cash for them.
Must admit i can so no benefit in you doing so.
If you were considering purchasing the shed for say $25k-$50K and pay cash would you not be better off taking a 95/97% loan and on the full sale price and only putting down 3/5% which would be less than the $25-$50K amount anyway.
You could capitalise the LMI on top so it would nearly be a 100% loan. With SGB you have the Loan Equalisation Fee which you are not able to capitalise and this amounts to 2.5% of the purchase price anyway.
95% means you only need to put in around $31.5k – $35k and the rate will be a lot lower. Use the rest of you savings to undertake the subdivision.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Why not send a PM to Xenia “DR X” from the forum she is a SA gal and a local who specialises on LO’s in the State.
Look her up on the member search.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Safe
90% should be available to you however I guess you have to find your confort level in development.
You could always buy, develop and hold.
That avoids that horrible word TAX
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi David
Welcome to the forum.
Which State are you looking to wrap in?Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
70 / 75% is available at standard Bank rates dependant on the terms of the lease.
As Cameron mentioned 95% is vailable from a non bank lender although the rates hurt the returns.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
I am also a advocate of not X Coll your loans As Steve mentions you don’t need to X Coll to borrow 100% + on your next IP it is all about structure.
I do however prefer to see my clients purchase in Trust rather than their personal name.
In essence there is 3 main types of Trust each of which has different benefits dependant on your own situation:
1) Disc Family Trust
2) Unit Trust
3) Hybrid Trust (combo of 1/2)Consult a mortgage broker before you jump into your next purchase as undoing what you have got can be expensive if you don’t get proper advice first up.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Ellis
Technically you cannot sell something that you don’t own (Ignoring Options before anyone responds) however ever purchaser has the legal right to bring forward the Possession Date and repay your loan.
As the title holder you would need to be the one who signs the Sale Contract alternatively your purchaser can sign and advise the buyer that title will be in his name at settlement.
He would then ensure that his Transfer was registered prior to the new Transfer and the new Mortgage.
A Transfer by Direction is standard practise in many development or onsale deals.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Sorry Safe i shouldn’t have used acronyms.
GR = Gross Realisations or End Valuations.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Terry is correct a NODOC loan would seem the way to go unless you can show on paper serviceability.
Either way I would also suggest that you split the loan to ensure that you keep the investment portion separate to the debt consolidation part.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Nik
Welcome to the forum.
In my opinion you are never to young to start investing and purchased my first IP at the age of 18 back in the UK.
To assess an application and make recommendations on borrowing capacity, structure etc a little more information is required.
Lenders look at a variety of things but serviceability is paramount. Taking into consideration the rent you will receive on the property being purchased together with your income and subtracting on the other side of the ledger your liabilites as well as a set living allowamnce dependant on your marital status gives a broker a net disposible income figure.
From this figure he can calculate the amount of loan available to you and look at the types of lenders and the terms and conditions each would impose.
Each lender looks at rental income differently and takes a particular percentage into consideration. The same applies with liabilites so providing a broker these figures will enable him to offer you a couple of lending options.
Structure is also dependant on individual circumstances. Do I buy in Trust / Pty Ltd or personal name will be different for each client and a clients circumstances will change as years go on.
Many of my clients both here in Australian and overseas I have never actually met face to face but treat them as friends and hope they now that i am a phone call or an email away.
Most applications are lodged and processed electronically so the day of the email has revolutionised the mortgage business and competition has aided the broker work closely with his client to reach his goal both now and in the future.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Safe
No not at all as long as you show serviceability or an exit plan then i am sure it can be financed.
We finance many development deals for clients and interest capitalisation is important in a lot of these.
All depends on GR’s.
Would need to now a lot more information before i could make a call on whether it could be done or not.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Jim
I guess the 2 pluses you have immediately are equity and cash and they are a powerful combination.
Depending on the severity of your credit impairment i think you would be able to fund a purchase and development if you are happy to offer the security of your additional vacant blocks of land.
Just remember obtaining finance is one thing servicing it is another. So never bite off more than you can chew.
Happy to offer further suggestions/
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Ellis
I have done one or two in the past 9 years but all in Qld.
Not much difference so if you need any questions answered ask away.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Yes location is important but it appears to me that no one has actually considered that the IP’s you are purchasing are generating a rental income.
At 80% nodoc over $500K the LMI will be expensive so structure is important to ensure that you get value for money.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Trish
Which State are you referring to.
Will it be the first ppor and is a regional property?
This additional information can get us started.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Terry is right equity is king but in your position equity and cash flow is even better.
Time to say goodbye Bank and hello independant mortgage broker.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
I am with Stephen look around at comparative sales and present these to the Bank’s inhouse valuer.
In saying all of this I think you could obtain a lot better pakage than what NAB are offering dependant on what you are trying to achieve from your lender.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hellman
Good link however as Terry mentioned it is not upto date unfortunately.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
I am with Alistair sounds like 95% maybe possible.
Before you go unconditional just check out a Building Insurance quote. After Childers many insurers are getting cold feet and premiums have risen.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Heh i don’t think we are talking the same language here.
Placing an occupation and a contact number on a signature is a but different to a whole post relating to what you can do for the rest of the world.
Lisa I wasn’t acusing you of anything i merely asked you a question given our previous email correspondance
Obviously everything in the world of US rehabbing is not as white as white and I now have a client who had trusted someone with his hard earned money only to find they have lined there own pocket.
All i am saying is make sure you check who you are dealing with when purchasing abroad.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
