Forum Replies Created
Hi cama
Personally I would never purchase a property with a friend.
Remember a friend today may not always be a friend tomorrow especially if anything goes wrong with the investment and you fall out over it.
You seem to have a half decent deposit although one thing you have to bear in mind is the purchasing costs in VIC especially when it comes to Stamp duty etc.
With your own PPOR and on the basis it is a first ever purchase you will qualify for the $7000 FHOG which I beleive is subsequently increased for VIC FHB.
Why not purchase a PPOR for you and your partner occupy the property for the required time and then consider accessing the equity for future IP purchases.
Having done over 180+ wraps with a friend and business partner who i have subseqently fallen out with and now no longer talking to although still trying to run and manage the properties i can assure you it is no worth it.
My 2 cents worth anyway
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Are you happy to look at the Northern Gold Coast?
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Sally
Not bad for your first post.
Want to tell us who they are.Out of curiousity you wouldnt be a property manager would you?
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
As brahms mentions we may need a little more information to advise you further.
You will not get a lender advance you more than the purchase price / valuation of the property if their is not additional security being offered.
Lenders also will want you to put your money in first and then be happy to reimburse you on a works done basis.
In saying all of this tell us more.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
GR
Why not tell us a little more about what you are trying to achieve.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Bob
One of the most importants things is equity and you certainly have some of that.
Wy not consider restructuring your current loan so to allow you release some equity and use this as deposits for new IP’s you may wish to purchase.
I am unsure as to your rental income but assume that it is close to if not greater than your current mortgage committment. Also currently whilst you are working overseas and receiving pounds you should try and maximise your savings as it will convert nicelt into Aus dollars at present.
Certainly from the information you have provided you should be able to grow your portfolio.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
GE = Genworth
LMI = Lenders Mortgage InsuranceCheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Cabo is right it is all about marketability.
In saying that GE cover it for LMI so i would have thought you coul dhave got at least 80% with a few lenders.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
It is very simple you include a clause in your installment contract stating that you will insure the building and debit the purchasers loan account with the premium amount.
In the event that the purhcaser pays an amount into the account to the value of the buildings insurance premium then no interest will be charged.
That way you are always covered.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
80% is certainly readily availble irrespective of how many units in the block.
Completed a reburbished block of 18 units in February of this year and we got 80% no problem.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Rick
Yes i will do shortly.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Alistair
The Trust will not be set up in Oz but in the US so will not be floated on the ASX.
The underwriting refers to how Regions Bank who I have been working with for nearly a year will consider each members serviceability.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
suzieq
You say you have placed a deposit on a block of land so i asssume from this you have signed a contract.
It is unlikely that the Vendor or Developer will allow you to replace this with a Put / Call Option as he will see you as merely a speculator and probably want to increase the price.
The Put / Call Option should have been drawn up initially.
If you want to sell now you will need to draw up a sale contract which will trigger a double stamp duty issue.
You can try and have simultanous settlement dates by using a Transfer by Direction but ensure that you have sufficient cash funds avaialble in case your purchaser has a problem and cannot settle with you.
An alternative would have been to purchase the block of land in a Pty Ltd company name and then sell the shares in the company. I have commented on this strategy on a earlier post in response to another question.
This would alleviate the payment of double stamp duty unless of course the Company was considered “Land Rich”.
In saying all this each State has its own laws on payment of duty. In Qld there is no SD payable on an Option but this will vary throughout the Country.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Alistair
I concur with your post.
Commercial lenders are dime and dozen but as you say the terms and conditions vary considerably.
Did a $1MUSD loan for a FN client earlier on this year on a Commercial property through my old broking house / bank JP Morgan Chase. When I phoned them for the 2nd deal they told me they never lent to FN it was just an old favour.
The problem with Section 32 loans is not so much the fact that they are less viable for the lender but the different rights borrowers have under a
S 32 loan and the greater disclosures a lender need to provide.In saying all that in NY State alone 2 of the larger S32 lenders withdrew their facilities for investment loans after the recent Patriot Act amendments.
In conjunction with a US lender we are intending to launch a US Unit Trust product in the new year which will offer many investors the opportunity of pooling together to purchase a commercial property.
The legalities are in place and now we just need to sign off on the underwriting format for each Unit holder.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
ilearner
How ill informed you are.
Do you really understand the mechanics involved in establishing an installment contract or License to Occupy.Do you really think companies such as General Electric (One of the largest companies in the World) and their associated Financial arms should also be SHAMED for charging clients 27% PA on products marketed as interest free or the 13.5% they charge (secured) for clients who happen not to be able to verify their income and have been discharged from bankrupcy.
Grow up – as many previous posts have pointed out the Tribunal found in the favour of the purchaser rightly on the basis that from the payments being made they had little chance of ever owning the home.
Next thing you are going to tell me that those 106% lenders who charge 1.5% over the SVR are also unfair.
If the client receives independant legal advice and the terms of the IC are transparent and just surely the purchse would have little to complain about then.
As a company we currently have on our books over 180 happy wrappees from who we get regular letter of thanks and xmas cards from thanking us for putting them into a home and giving them a chance. They were all aware of how much the home was originally for sale for and understand from our letter of offer than we are also running a commercial business.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Financing a deal that size is a lot easier beleive it or not than it is to finance a deal for $35000.
With the changes to the Patriot Act with effect 1st October 2005 Section 32 Loans are now becoming a thing of the past.
The implications both financially and legally on the Directors of Banks and other lenders caught lending on cases where they have not verified the wherabouts of the downpayment are considerable.
Hence purchasing in some States an investment property where you require finance as a FN maybe a thing of the past. A second or vacational home is possible but the small investment deal has slipped you by.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
One other reason for undertaking the building and construction in another entity away from the holder of the land or building is the BSA.
In Qld your turnover determines the Assets required to be personally held by you as a developer and this includes purchase price of any land and building being refurbished.
By using an separate entity on a unit block refurbishment the purchase price maybe for example $600K on a block of 6 units and the refurbishment maybe $300K. You turnover would then be $300 rather than $900 and a consierable saving each year.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Let the wrap business look after itself and increase our development business.
If it is this active when we are supposedly in a downturn heaven help us when things start moving up again.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
30PC
I can assure you that valuers do not have different assessment criteria for if you are a Qld local or from Inter State. All are treated the same.
When instructing the valuer many lenders will indicate to the valuer whether the purchaser is local. Others may require a full valuation if the purchaser is inter state whereby the Contract price or a driveby maybe accepted for local buyers.
As a MB I know sometimes it can feel like there is a different policy for each but all they really want to do is stamp out the Dudley Quinlivens of the Gold Coast.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Suro
Many lenders offer a Professional Package which provides you with numerous benefits in relation to the waiving of application fees or a reduction in the interest rate etc in exchange for an annual fee.
The levels of entry and benefits vary so as Simon mentions consult a good mortgage broker as the result will vary considerably.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
