Although Terry there a couple of lenders i can think of that actually lend against valuation from day 1.

I have just settled a deal which was an off the plan purchase and the property has gone up considerably in value (Yes i now its unusual) where the lender took the valuation figure and not the purchasr price.

Admittedly the rate of interest was a little higher but it got my client out of the hole he was in.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

BJ i think it all depends on how much you want the property in Vic.

Now a days the interest rates charged on standard bridging are the same as normal mortgage rates so the days of 4/5 % above base have gone.

You have to be releastic in what you think your property in Qld will eventually sell for and work our whether if you drop the price now you will be better off or holding out for the higher price and factor in the bridging interest and set up fees.

Have you consider using the equity and renting out your Qld property? Whilst you may not be maximising your Tax deductions and the interest on your new main residence will not be deductible (irrespective of the CGT implications) it might be worthwhile in the long term.

Will you ever come back to Qld or have you left for good?

If you want to air some numbers in the forum either I or any of the other Mortgage Brokers in here can calculate some interest rapayments and suggest some potential lenders.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

Most FA tend to agree that you need a minimum of $75K in your own SMSF to make it worthwhile and that is merely that the costs of compliance and reporting make it roughly similiar to the management fees and charges a company fund would charge you.

Personally i think you are right with you figure of 200K and am glad I had more that that in my super when i started self managment 10 years ago.

Remember costs and charges are static fixed figures you just need to ensure that you make a return that is worthwhile. 10% PA after costs or you would leave it in the hands of a fund manager.

Thankfully i will never trust a fund manager again.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

Thanks for the wrap robert.

A pom actually you dont become a Cane Toad until you have been here 20 years. I still 8 years away from being a citizen.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

AXJ

Which part of town are you?
I have a good mate of mine in the Western Suburbs who is a FA ex St G Bank jonny like myself from way back.
PM and i woul dbe happy to give you his details.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

Someone mention my name.

Kelly feel free to shoot me an email if you need pointing in the right direction.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

Leo

Good to see that you nearly doubled the number of posts you have made to this forum by your comments regarding this question.

As someone who makes his living from wrapping and providing Vendor Finance in Qld(Yes you are right they are 2 separate types of lending) I totally disagree with your cast on the professional wrapper.

Similar as has been stated in previous answers the case you refer to is a simply matter of FRAUD.

With all of our wrappees (we will ignore clients to whom we offer Vendor finance to at this stage) we insist on the following:

1) A full application form showing serviceability and a proven past background, credit search etc be undertaken prior to any pre-approval.
2) If the appliation is successful and meets our underwriting criteria then a pre-approval letter is issued. This clearly states the maximum purchase price they can go upto and then provides both a monthly repayment and onsale price we would offer the property to them at.
3) All properties are found by the wrappee who negotiates the price with the selling agent first then refers to us to take over the formalities of Contract.
4) If the purchase price we buy the property for is different to the maximum price shown in the initial letter of offer (obviously less) then a new Letter of Offer is issued showing again the onsale price and monthly repayments.
5) Our Contract with the Vendor sibject to and conditional upon us executing a sale contract to our purchaser.
6) The Installment Contract (if using this form of document) is drawn up and sent only to the buyers Solicitor. The Contract is fully compliant with the UCCC.
7) The documents must be signed in the presence of the clients Solicitor who is then required to provide us with a Certificate of Independant Advice informing us that he has explained the difference in purchase price to the buyer.

Prior to any application being taken the potential buyer receives a standard letter of explanation as to what our Installment Contracts invloves as well as a detailed 4 page Q & A document drawn up by our Lawyers which we suggest they read in conjuction with their own Solicitors.

Having presently 187 wrap deals that we own and manage I would hardly call it “A few measly bucks a week”. It certainly helped me retire in my 30’s. To date we have a list of clients as long as your arm who have provides us with letter of thanks and referral business from family or friends.

Hardly the stuff that NR’s are made of. My 11 daughter tells me that rapping is fact a type of music but what would a NR now anyway.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

I am with Robert a 0.5-0.7% saving off your home loans and the correct structure with regards to the loan format will save you so much more than the promise or sorry GUARANTEE of 9% P.A.

And what happens when the Company does not perform does the Financial Adviser cover the shortfall. Remember will your FA be around when you come to retire.

The best financial adviser I have come across has been myself with a little DD and market awareness you will outperform any of the so called experts.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

Psyduck

If you are interest in wrapping or providing Vendor finance facilities then please feel free to email me.

As a company we currently have 187 properties which we own and have wrapped. Have been offering venodr finance terms since 1996 although have been involved in property investment for over 20 years.

Happy to answer as many questions as you would care to fire at me.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.

I thought the whole program was a load of rubbish

Firstly your purchase costs in Qld would have been around $15K then your sale costs at $400K around $12K.

Then you have your BSA premiums, insurance & interest. Even if you assume that a couple of these were covered in there $40K reno i thought the whole thing was a poor stunt.

Quality work takes time and you could see the look on the face of some of the Trades Guys faces they were not impressed.

Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.