Forum Replies Created
Hi Kiwi
Would be happy to assist if you want to email me what you are after.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi PP
Good on you for having a go and trying to get ahead.
Lending on a a development site is a little different to a standard residential IP lend.
Firstly the time frame between land acquisition and settlement can be a least 12 months on the basis that your Development Approval is already in place.
More than likely it will not be and you will be going to contract on a raw piece of land on the basis that you can gain approval prior to settlement.
This in itself will incur a reasonable amount of cost and in the event that the approval is not forthcoming will be money wasted. Esnure that you consult professional i.e Town Planner, Architect, Surveyors etc before you spend too much of your own money.
On the basis that you have now settled and intend to build 3/4 units on the land most financiers will lend against either a percentage of the actual costs of construction or against the end value of the development.
Bearing in mind that you will contract out the construction to a builder they will want to make sure that it is a fixed price quote and their will be limited cost overrun.
Always factor in a contingency percentage into your cash flow as lenders like to see that you have considered this.
GST is another factor so many small first time developers forget. It is more than likely you will be applying the margin scheme to the development so work your figures correctly to show a strong understanding of your cash flow.
A fall back position is also important. On the basis that you have not got pre-sales you will need to prove to the lender that you will rent the properties out after completion or be in a position through external income to be able to service the total amount of the loan.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Almost forgot – if we where to get a fine day would it possible for you blokes to play both Tate & Gillespie.
In fact if you have any other topline bowlers bring them in and give Warne and Lee a break.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Flash
It has been a sad 20 years for me mate so my time in the sun is coming.
And did no one tell you rain is forecast for all 5 days for the 5th.
Oh at long last to be an Englander.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Daniel
Just wonder if you would like the name of my charity so you can send the first $50 to.
Seems this topic has all gone quiet – where are you all.
Who cares if it rains for 5 days in the 5th Test.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Jarrod
We are trying to start one in Brissie so will keep you posted. Will save the travel South.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Vernon
On the basis that the land is residential and normal size block then you would be able to get upto 97% LVR assuming that you intend to build on the block within 12 months.
If not then i will probably be down to 90%.
If you have a block in mind and you want us to check it out to ensure the post code is acceptable then please email me.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Heh Guys
What has happened it has all gone quiet overnight.
Don’t worry I fancy Shaun Tate to save you with the bat. Perhaps, Warnie better learn to keep his comments about the pitch to himself in future
So much for there is “no movement” its called swing boys.
I only get chance once every 20 years to gloat so i am getting my moneys worth.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Heh Steve
Yes Shaun Tate is promising.
Playing English Country Cricket last year his first appearance he conceded 176 runs off 18 over for 0 wickets. Thats not bad thats only 9.78 an over.
If the extras arent scored that quickly.
Please bring back Gillespie all is forgiven.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Anz would certainly do 80% if they are strata titled but would limit LVR to 65% if in one line.
We have several funders who would do 80% for a non strated block with rates not far off residential.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
If all stacks up i can’t see a problem with financing a deal like this.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Dan
You don’t mention that you have a loan over your PPOR so we will assume that is a NO.
Why not:
1) Get your lender to revalue the 1st IP assume $170K and then taking the purchase price of the 2nd IP of $150K gives you total security value of $320K.
80% of 320K = $256K less existing loan of $119K gives you additional borrowing of $137K. If you put in the $13K to cover the shortfall and cover your own acquisition costs then deposit the balance of your savings in a linked offset account.
This will give you immediate access to your funds as well as saving you interest on your IP.
With that level of borrowing you should be able to negotiate an attractive rate and package.
If you need a hand email us.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Wayne
I am with Steven although at 3.08am I was watching England destroy the Aussies and not answering questions.
If you broker is having problems it is very easy -change brokers.
Good luck.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Steven is right i could not recommend on going on the title with your mother especially if you are elligible for the FHOG.
Any mortgage broker who suggested that i would be dumping and moving on to someone else
If you mother is happy for her property to be used as security then it would be easier to do the loan in her name solely (subject to serviceability) and this would have no effecton your future borrowing.
The interest rate would be more attractive than your unsecured borrowing and would give you the opportunity of repaying any loan that much quicker.
Make sure if possible there is no early repayment penalty so that when you sell the property you can repay the balance and move on to achieving your actual initial goal.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi mhugo
Under 50 Sq M is not a problem dependant on how big.
I have just completed one only yesterday at 40
Sq M and we got LVR of 90.If you want to tell us a bit more i can point you in the right direction.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Simon, You beat me to it.
I had my telephone call yesterday and then followed the criteria 5% / month is bang on. You must have had the same advertising blurb sent to you.
Not bad for a 2 poster
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Simon has hit the nail on the head.
I have a couple of boarding houses and yes the turnover is higher than normal and take the odd phone call from the onsite manager on Sunday night but the general return is a lot higher than one would get from a standard investment property.
Certainly not everybodies cup of tea but what a boring world it would be if we all were the same.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
I agree with Simon more information is required to offer clear and consise advice but i assure you have done several over the last couple of months for brothers and sisters buying together.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Westan
David Gower, Mike Gatting, Graham Gooch, Mike Atherton to name a few were all born outside of the UK but didnt stop them playing for England.
Thinking about it Clive Rathbone, Tatiana Gregorvitch and a the new Bulgarina Discus thrower aren’t locals are they. Oh yes sorry i fogot about the rest of the Wallaby team as well.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
100% or more to include costs is always available to Expats when you are offering additional security.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
