Forum Replies Created
Grreg
Yes financing as an owner builder can be not only be a little harder but also the number of hoops you need to jump through can often be numerous.
Rule of thumb is you will be limited to around 80% LVR although in saying that we have done 1 or 2 at 90% where GE have provided LMI. However in saying all this from the figures you have given 80% is not a problem.
One thing i would say is ensure that you have loan structured correctly. If it a PPOR then you will want to ensure that it has flexibility as also make sure than you are not ladened with fees and charges for each stage draw as well as ongoing fees at settlement.
As always if you want some more specifics feel free to email me and i would be happy to assist further.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
HD
It was in fact me he posted that.
In Qld if you are signing on behalf of someone else i.e a Pty Ltd Company etc then you can use a nomination letter and transfer the actual name to the purchase contract at a later date.
This will avoid S/D however i am unsure as to the requirements in VIC.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Steven
Thank you for that compliment and referal.
Your $50 dollars is in the mail.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
KLH
Ring Melville McGregor Lawyers who are at Beenleigh. They have been our lawyers for over 11 years and specialise in conveyancing covering the whole of the Gold Coast and Brisbane.
Speak to Leonnie who can be reached on 3382 9222.
Tell her Richard told you to ring.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Feel free to email me.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Jim
Xenia is right. Why not take things one step at a time.
One of your goals is to buy a development site and i assume develop it. You mention that you intend to put $100K into the project.
I have to say that unless you have experience in this field you will struggle to find a lender advance funds on a furst project of this size.
Secondly you mention that you are going to draw on equity in an IP to then invest in the stock market. You mention that the income will sufficient to cover the I/O payments.
I am at a loss why you would borrow funds merely to generate an income to service the interest unless you though that the dividends and imputation credits would be greater than the rate of interest you are being charged. Alternatively you felt that the economic cycle still had further upside in the stock market and where relying on the capital growth.
Thirdly you mention that you are intending to start a new business. Is this business established and does it generate an income. Who is going to be running it.
I think you should carefully review your financial position with a mortgage broker and perhaps stagger these ventures.
The entity used to move forward is only one consideration.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Michelle
Each lender calculates its serviceability diferently so you may find what you qualify for with 1 lender will difer with another.
Some lenders add back the negative gearing element and others take a higher percentage of rental income into consideration.
If you have good equity then thee are often ways around serviceability issues.
Rather than post your personal information on the forum if you would care to take this offline and PM or email me then I am sure I can point you in the right direction.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thanks very much for the compliment Xenia i always try and offer clients the best advice for them and not what benefits me.
Funnily enough Jenny I have just done an application this week for a client who purchased an old queenslander house sitting across 2 lots. .
The house is to removed and 2 houses to built side by side. One to be occupied as a PPOR and the other as an investment property.
Funnily enough the initial issue with a lot of lenders was the multiple dwelling on 1 title (albeit on 2 lots) but thankfully we have got around that and loan was approved in a couple of days.
With a construction loan Jenny the lender charges you interest on the amount of money released to you. This is usually in 4 to 5 progressive stages. At each stage the lender will release further funds (normally directly to your builder) and consequently the amount of interest paid by you increases accordingly.
Happy to assist further if you care to email or PM me.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Xenia is correct it all depends on which State you are in.
In Qld “and or nominee” is not acceptable so you would need to utilise a standard Call Option.
Keeping it in “and or nominee” means double duty in the Sunshine State.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Xenia is correct it all depends on which State you are in.
In Qld “and or nominee” is not acceptable so you would need to utilise a standard Call Option.
Keeping it in “and or nominee” means double duty in the Sunshine State.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Financing property under 50 Sq M isn’t a problem it all depends on what percentage you want to borrow.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Regrow
As per sommersoft.
Not sure of the amount of your refinance but if you are quick St G in Qld have waived their application fees on their LOC and that maybe preferable than trying to get them to extend a loan to place in your offset a/c.
If the loan is large enough the rate of inertest maybe cheaper.
ANZ Bank will not care where the fudns have come from but just make sure you structure in such a way to reduce your LMI payable.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Rabbie
A Financial Adviser will not accurately be in a position to discuss with you loan structuring so you are always better to consult a mortgage broker for this.
You mention that the IP and the vacant land are mortgaged and that the PPOR is the security. When you sell the PPOR the lender will require either:
1) The loan repaid.
2) A substitution of security to the same value to fit in with the lender LVR ratio requirements .
3) Possibly lending against cash security.
Is the new construction property going to be your new PPOR. This is important as it will reflect on your decision for 1 – 3 above.
If you care to email us the answer we can take it forward for you.
Out of curiousity i would be interested in what your Fin Planner has to say.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Ash
You should Contact Mic from Aussie House Hunters in Newcastle as he is a great buyers agent and has good experience of finding property in rural Qld.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Alex
For the Seller the plus points are it makes it easier for the purchaser to obtain finance and dependant on the interest rate charged may prove cheaper than traditional funding.
Also dependant on the market the vendor may receive a slightly higher price for the property than he would if sold to a cash buyer.
For the purchaser it may mean that they can utilise some of their savings or their FHOG (if they qulaify) for other costs and expenses and mean that they don’t have to put down everything into a loan.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Nathan
As Terry pointed out some of the smaller non bank lenders charge the client their legals fees but normally it is incorporated into the application fee if any.
Our firm of lawyers normally charges around $550 for a conveyance. They should be able to retire with the no of deals they have done for us over 11 years.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
To concur with Derek’s post ensure that you have had check of your finances before you look to give up full time work.
Trying to convince a lender to extend a LOC or to offer you development finance funding is not a good idea when you have just given up full time work.
Set up your structures in advance and then go for it.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
As Simon mentioned no lender can force you into cross collaterilsing securites unless your equity is not sufficient for the loans to stand alone.
If they tell them to sling their hook and go elsewhere
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Steve
I am concerned already.
You mention that your in the process of wrapping your PPOR yet presumably you havent signed an installment contract or issued any of the consumer credit complaint documentation.
Dependant on which State you are in i can guide you through the process.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Nathan Which State
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
