Forum Replies Created
Agree with Terry.
What i often get is at the end of the coffee meet is "could you email me a list of lenders who will do that or some more detailed information on buying in my SMSF so i can pass it onto my regular Broker / Financial Planner as they didnt believe it can be done".
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rick
That does not surprise me.
I never fail to get amazed at the lack of quality information given to iinvestor clients by Banks / Bankers. Most of them have no clue when it comes to loan structuring.
Some lenders do not offer their full suite of products when a Discretionary Trust is involved so a Broker will be able to give you a variety of options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Stu
No not at all. Anything is doable just boils down to a combination or rate and lvr.
Do deals like yours all the time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wilko that's exactly what my thoughts and previous comments related to.
The structure of the initial loan set up is the important part and done properly i believe it could be done.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alterego
Firstly welcome to the forum and I hope you enjoy your time with us.
Nice position to find yourself in although sorry to hear about the family loss.
Structured correctly there is no reason why you cannot both use this as an excellent launching pad to set yourselves up for the future.
Without firm numbers it is difficult to comment with a degree of precision buy i would be probably look at an equity loan secured against the property and use these funds to cover your owner builder deposit or access to credit to allow you purchase materials, pay other contractors etc.
No reason why you couldn't then look at a separate loan for the land and gear accordingly.
Check out whether there is a limit in your State as to the number of properties you can owner build in any one year but as i say a combination of owner building and acquiring cash flow properties should set you up for the long term.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jenny
There is no standard VF interest rate it all depends on your circumstances and what returns you are looking for.
I did one in my SMSF last week at 6.5% (which was a percentage over the Cash rate which i normally work off) but in saying that the on sale price was higher than 10% above my initial purchase price.
I guess it depends if you are looking to buy a property thru VF or sell one.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
And of course a seller is not required to countersign your offer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jenni, really where are the traffic problems in Logan / Waterford ?
In fact with the Logan motorway and good access to M1 i would have said that is far from the case.
First i have heard about it and i have been involved in real estate here in Brisbane and Qld for some 18 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matt
I am assuming the property will be an IP not a PPOR so given this your lvr will be limited.
Whilst 95% + LMI is doable in Toowoomba (according to QBE, Gemworth won't touch it) you are reliant on the valuation in regards to comparison sales etc etc.
Either way the balance of deposit, stamp duty and acqusition costs will come to a lot more than $4K.
A secured credit card to 20K is also an option and as long as you can show 5% genuine savings / equity then that facility is possible however your timing wont be good given end of financial year end and an Auction in less than a fortnight. Even with 20K credit card you are going to be short when it comes to acqusition costs.
A blended loan is a possibility however the second mortgagee may not want to take your land as collateral.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dom
Welcome aboard and i hope you enjoy your time with us.
I started my property investing career in SE England when i was your age and in fact purchased my first IP the same year so good for you.
In saying this the hardest part going forward at your age will be financing the deal. In the UK at the moment finance for standard residential investment housing is hard enough to obtain let alone development funding.
Whilst we would love you stay and contribute an Australian based property forum is probably not going to be particularly relevant so why don't you look at the Property Tribes forum in the UK. Been a member there for 5/6 years and similar to PI.com there is range of experienced members.
Vanessa is the founder and administrator so join up and say g'day.
Good luck to you anyway and keep us all informed of your progress.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Even if you approach the Vendor after the expiry of the agency period the agent will still have the right to claim a commission as you were a willing and able buyer and approached the agent for information during the agency period.
As Jamie mentioned i can't see why you would want to cut the agent out other than possibly to try and save the commission element off the purchase price.
That assumes of course the Seller will deal with you or the property hasnt been sold.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Further interesting statement released today in the Housing Affordability Index quarterly review:
First home buyer numbers plummet:
• Number of new finance commitments to first home buyers dropped 22.5% in the March quarter, a drop of 21.3% compared to the same time last year.
• They made up just 14.5% of owner-occupier market – the lowest number since the June quarter 2004.
• South Australia was the only state to record a rise in the number of loans to first home buyers, up by 1.8%.
• Biggest falls were in Vic, Queensland and NSW, which fell 43.2%, 41.8% and 40.6% respectively.
Maybe lower interest rates wont be driving first home buyers back to the market less it be to stay with mum and dad or rent from uncle Richard.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Roberto
Sure Nigel didn't mean to say it but the payment of a deposit is not legally required for the Contract to be valid.
The 4 elements of any contract are:
1) Offer
2) Acceptance
3) Intention of legal consequence
4) Consideration.
Course in practical terms a deposit might be useful to encourage the seller to accept the offer however is not a legal requirement.
Became a Licensed Buyers Agent during the week so i could source property for my investor clients and must admit realised a lot of what agents do is actually illegal and in breach of legislation.
Make your offer in writing and present it to the Selling Agent and request they present the offer to the Seller.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ok Coota think you do a lot better there Waterford or Loganlea
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Not sure where Fredo is getting his info from but i don't think Nigel would hold himself up as a Brisbane expert.
I know he has been here a couple of times but i think he maybe have got him confused with someone else.
It all depends what you are looking for within that price range.
Certainly non of my properties are that far South but that is not to say it is not a good buy.
Logan City Town Plan is totally different to the Brisbane City version so what you can get away in regards to subdivision etc is a mile.
When we source property for clients it is a matter of ascertaining what their requirements are and finding the property to suit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Elives, no you are right he has no idea what he is taking about.
Stamp duty is payable on all transactions.
In some States their is a concessionary amount depending on whether the purchase is for owner occupation or indeed your very first purchase but in the main makes no difference S/D will be payable on a PPOR outside these concessionary bands.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Exactly JacM it is all about personal choice and thankfully we are not equal otherwise who would i rent my places to?
We are finding the level of enquiry for Vendor Finance has gone up a notch and at the same the level of enquiry for 100% lending for investors has done likewise.
Citizens of Australia like any Country are not all born equal and there will always be the have's and the have not's.
I own 1 property in my SMSF which i purchased in 2003. At the time the tenants had been renting it for 30 years and they decided they would like to stay on.
That was 10 years ago and now the rent is a lot higher than the cost of the mortgage repayment they will never move out (Unless it is a wooden box) as they are comfortable, someone else pays the rent for them and they can treat it like their own without all of the responsibilities.
Just watch home many first home buyers hand the keys back to their bank at the first sign of interest rates moving north…….
Oh you have to love property when you are on the right side of the ledger.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wow Sarah 13k for the Buyers Agent’s fee that is ridiculous .
We charge less than half of that but would never put a client i to a deal like that.
The yield post reno isn’t that good so personally i would run a mile.
It all depends on what you are trying to achieve. I would be looking at what sort of portfolio your Buyers Agent has built up first .
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Just because interest rates are currently falling this certainly does not mean that tenants will rush out and buy their own home.
Firstly the qualifying factors for a home loan have got stiffer and stiffer and the withdrawal of cart blanche Stamp duty discounts and give away Grants mean that for a $300,000 purchase the buyer needs to hold around $25K minimum in genuine savings.
Other consideration is many tenants rent as a lifestyle choice and have no intention of purchasing their own home.
If you look at Europe where ECB interest rates are at 0.5% and in the UK where domestic borrowing rates are around 2.75% the percentage of owner occupied properties has actually fallen over the last 5 years.
Economic uncertainty is not conducive to Tenants taking risk in home ownership as this is left to investors with budgetary control and increased equity.
Course like many investors i see the opportunities ahead and have this week tipped my toe into my first Commercial purchase.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have a client who works for Ford Geelong and he tells me that he is gearing up to be busier than ever as the spares parts and service divisions are still be maintained.
Also remember Rental Assistance is not Asset Tested.
I have a number of properties in my SMSF that I have sold by way of a License to Occupy / Rent to Buy where i prey like mad the purchasers don't get paid work.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
