Forum Replies Created
Many lenders adopt this attitude however as long as the property is >25 Sq M then you should be able to obtain upto 80% LVR at standard interest rates.
The inclusion of a lift is also important as to whether lenders wish to accept the security. Most prefer without.
A client from the forum contacted me last week buying a 1 bed unit in Sydney which was 34 Sq M and we have organised 80% lend for him.
This was a PPOR but a IP as long as it is not part of a letting pool should be acceptable security.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
As has been mentioned it will mean you are required to pay additional Stamp Duty however you may also trigger a CGT problem and if you have owned the property less than a year will mean you may loose the 50% exemption.
By all means transfer the property into Trust as Alistair has mentioned but weigh up the pros and cons first.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Nathan
Certainly rural zoning is more common in agricultural areas of small regional towns but you can certainly build on rural zoning subject to the Local Council Town Plan.
Many of the properties I finance in some of the smaller regional towns are either rural or residential rural.
Adam has explianed the meaning of Sunset Clause and is known as such as in oldern times the provision was just that a condition that expired at Sunset.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Alfa
What a load of rubbish.
With all the facts it is hard to give an definate answer but i would be looking to switch brokers to someone who can understand Contractors and the way in which they work.Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Unlikely you will get MI if it is much over 100 acres so therefore probably limited to 80% max.
I wouldn’t sell just coz you feel trapped with your lender. If you want to give us some more details i would be happy to assit further.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Alfa
Difficult to answer that one without a bit more information.
Different lender treat contract work differently and it depends on some many other factors.
For example if the lender has taken a high percentage of your income into the serviecability calculation then they maybe slightly more cautious. The total LVR will also be important, if the loan is mortgage insured the mortgage insurer may have his own rules on the matter.
In saying all of this you may find then lend simply says NO when it comes to the full application.
Go back to Broker and tell him the situation as any Broker worth his salt would be able to fix the problem.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Must confess i am at a loss on how using a broker cost you $5000.
Most brokers get paid by the lender on settlement with no additional cost to the client. One of the advatages as it has been pointed out is that you can let the broker do all of the hard work and then give you a few recommendations.
NAB or any other Bank will only tell you what they can offer and certainly won’t be forthcoming with information about their competitors.
As Terry mentioned lenders these days have become a lot more competitive and anything 100 acres is considered standard for a lot of lenders.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
tgavin
There are currently lenders offering 100% loans on IP’s and it is always easy if you have an existing tenant in the property.
By taking a 100% loan you might incur such additional costs as LMI or an increased establishment fees but it saying that it maybe worth it to secure the deal.
You will however need to be able to access funds to cover your purchase costs such as stamp duty etc. Dependant on which State the property is in this may add up to a few thousand.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
bwp
I am assuming you are looking on the mainland as financing anything on the island might be a little harder.
Structure is probably the most important think when buy ,develop and sell together with flexibility. You should also look for minimal entry and exist fees as finance costs can easily eat into your end profit.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Matt
Certainly from a financing perspective you will find that you need to offer a slightly higher deposit or additional security if you want to borrow at the higher end of the LVR scale.
Most commercial lenders will vary in terms between 65/80% LVR for a typical tenanted property with interst rates varying from around 7.1% for a small lodoc deal upto around 9.5% for a nodoc deal.
Also many lenders charge different interest rates dependant on the entity in which you are purchasing the property. I have several lenders that will charge residential rates if you buy in your own personal name and higher rates for Pty Ltd and F/T’s.
In saying all this we transact a fair amount of Commecial Business and most of the clients seem perfectly happy with the rates and terms we achieve.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Most of the Ausralian lenders we deal with will lend upto 90% LVR.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi LW
I am of the same vain of thinking of some of the other posts.
With a good income at an early age you need to ensure that you invest in your future.
Structuring your loan correctly and utilising the available equity will be a step in the right direction. A good mortgage broker can get you on the way and you can use this as your lauching pad to property investing.
As long as you have the serviceability there is nothing to stop you buying and buying and creating your wealth through a combination of innovative investments.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Jenny
There a few lenders who will take workers compensation into consideration depending on the LVR.
I would need a few more details on what you are trying to achieve to be in a position to comment further.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Matt
I have been invocled in Vendor Finance in Qld since 1996 and as a company we have done over 180+ wraps during this period.
One of the Companies I own First Home Owners Group Pty Ltd still holds 154 properties throughout Qld and the monthly cash flow enabled me to retire at 39.
Whilst retirement is not all it is cracked up to be it does give you choice and now i am able to help my client along the weath path.
Terry is right that in many cases had we bought and held the properties we would done a lot better by the way of capital growth however our Bankers certainly would not have funded that many properties through rental income alone.
To me i think you should look for a balance between the 2 strategies and decide whether property and indeed wrapping is to be business or an investment for you.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Yeh i have done one or two also.
And i still intend to do but maybe on a smaller scale now i operate on my own.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
amerc79
Most non conforming lenders offer lodoc loans for Investment properties with a LVR > that 80%
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there
Must admit i got slightly lost on your post.
I guess presently you are renting and therefore it is a toss up between buying a PPOR or IP.
Being Self employed will not stop you buying either however if it is a higher LVR with a short period of self employment and unable to proove your income then a lodoc style loan maybe a consideration.
If your husband has at least 1 Years accounts then financing it would be no problem dependant on the LVR.
Over 80% LVR you would end up paying a slightly higher rate of interest if you need to take the lodoc option. Otherwise if you can demonstrate serviceability the rate of interest would be the same whether he was S/E or employed.
Ideally the best thing to do is run through your borrowing capacity with a independant mortgage broker who can not only look at your options but also the recommended structure in which you purchase the property.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Jett
You mention the words transport so do we assume it is a removable home
If this is the case you will not find any lender want to advance funds until the house has been moved, stump, all services connected and Council Approved.
It is unlikely that the removal home company will carry your costs and will probably want a decent deposit and maybe a stage payment.
You would better off constructing from scratch on the land and get the lender to make construction draws at the varying progress stages.
That way 95 /100% advance would be possible.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Which State are you intending to operate in?
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
judw
Why are you looking for private finance.
This day and age most properties where you have equity in the property can be funded by a traditional lender i.e lodoc, no doc etcRichard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
