Forum Replies Created
Where is the property you are looking to purchase.
There are a couple of lenders who will waive the LMI on a purchase but a couple of them are location specific.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
TMD What is it you are struggling to understand ?
I try and purchase everything for myself or my clients that is positively geared from day 1 but of course depending on your lvr this is not always possible.
In saying this remember there are non cash deductions especially on a new property that can aid your cash flow even though they don't cost you anything.
Of course that is not to say that buying new is always the way to go.
No reason if the loans are structured correctly (and assumuming serviceability allows) why you can build and buy your first IP at the same time.
Cheers
Yours in Financ
Richard Taylor | Australia's leading private lender
Depending on the size of the loan you might be better off doing a blended loan.
Sure higher rate of interest but could be a considerable savings.
If you don't want to go that route shop around and get your Broker to come back to you with a couple of LMI premium options.
Did an LMI quote early today for a forum client and saved the nearly $4K from what their own Bank wanted to quote them.
By there way unless you are in the medical profession there is no lender that is waiving LMI at the moment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i have a couple of people i could recommend but i believe in recommending people who genuinely contribute to the forum and I agree with J & J and would suggest DWolfe.
Rest assured not of the 3 of us are getting a kick back on the recommendation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I remember inspecting a property which had a great city view but in front of it was a property under construction.
A very well respected agent in the are told me they were building a single storey property and certainly would not block my City view.
Thankfully a little bit of DD proved she was wrong but someone end up buying it and when the new house was finished there was no City view at all.
Sure misrepresentation but again try proving it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Happens so often clients engage a Buyers Agent and then get presented with a property which is nothing like what they originally wanted.
Usually comes when you deal with a BA who doesn't inspect the property they have offered you and done it over the internet.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As the boys have mentioned the property location will determine whether the deal can be financed thru traditional lenders.
The alternative is to consider a 100% blended loan but that will be credit scored and will depend again on the rest of the deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
GOM yes they do but probably have the worst level of service and credit policy in the market.
That's why they have to keep coming up with short term attractive rate products because the net outflow of business is ridiculous.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes my sentiments exactly about Bank West.
Would normally never suggest a client refinance for refinance sake except where they are with bank West and maybe a couple of other lenders.
Course so many investors think it is solely about the interest rate they forget the other parts of the jigsaw.
GOM – Always wise in hindsight but regretfully clients listen to what their Bank or Broker tells them and hate to say that is not always true or accurate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Hoping
Yes you can transfer the $110K in advance repayments to your offset account but regretfully you cannot claim the interest as a deductible expense and that i guess is where you have gone wrong.
Hopefully your Bank didn't tell you that you could.
If you think you might do the same thing with the new property just be vary careful how you structure it to avoid similar issues down the track.
Guess it is a matter of accepting the fact and then moving on with the next property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Hoping
Ok well the problem you have is that the interest on redraw funds are not Tax deductible.
Had the redrawn funds been sitting in the offset account then you could have used them as deposit on the new property or alternatively borrowed 100% and used the case as Term Deposit security.
Not sure which State the property is in or whether you own the property solely but depending on this a Spousal Transfer or UT sale could be an option.
Of course alternatively transfer the loan to interest only de-link the offset account and then make a separate application for the new PPOR with a separate lender that doesn't charge for an offset account and put it down to a back loan structuring.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Walksy
Firstly welcome to the forum and i hope you enjoy your time with us.
There are a variety of options depending on whether the property is an investment property or PPOR.
We work with a lot of private investors who will go upto 100% of purchase price on selected properties.
Would of course needs more information before i can tell you whether you would qualify.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Hoping
Unless i am mistaken you only have the one property at the moment and it is your PPOR.
If so then i hate to say for your strategy going forward you may have structured the loan incorrectly and this my hinder you doing what you want to do.
More information would be needed but if you decide to rent the current property out then you are only going to be able to claim the interest on the current balance of $74,000 (assuming the additional funds are not held in the offset account but been used to reduce the loan balance instead).
Of course all boils down to your wealth and property goals going forward but on your income and that equity available if you wished to Turbo charge your property portfolio going forward you certainly appear to have the ability.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Pleasure Amanda, talk soon.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with you that CBA are certainly not the most competitive when it comes to rate but as Terry points out this is on off many factors to consider.
Regretfully many investors seem to forget that the structure of the loan and flexibility of the lender is a lot more important.
No point in having a sharp rate when your lender or broker doesnt have the same ideals as you when it comes to growing your portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Aus
Firstly welcome to the forum and I hope you enjoy your time with us.
Starting out in property investing can be an exciting and daunting time as you are faced with so many different options.
Have to say whilst I strongly believe in property education i cannot see the benefits of spending your limited funds on high priced training packages only then to have less capital to invest in and find yourself not able to do anything until you have saved up again.
Certainly as JacM has mentioned we do have access now to 100% financing for investors or owner occupiers with a new blended rate product which is proving to be very popular and the demand is growing by the day.
Unfortunately the product is not available in WA at the moment but unless you really want to invest in that State is something well worth considering.
Recently settled a deal for another forum client working in the mines in WA who purchased thru JacM in Victoria and wanted to get up and running with his portfolio.
All a matter of starting slowly and building over time.
This is part of the 3 phase programme we teach our clients who are looking to "Turbo charge" their portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Catts
Hopefully some of my clients might comment on what they have got for their money from me and my team we would like to think we work with a client from start to finish.
Whilst every client has different needs and requirements we ensure we hold a clients hand along the way.
Some clients are looking to start their property investing and buying for cash flow others are wanting to look at a simple development or Strata Titled block of units.
Whoever you use my simple advice would be ensure your Buyers agent or Property Sourcing representative has experience in the field and is an active property investor. Nothing worse than dealing with someone who is advising you on your property investing path yet has never purchased their own investment property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jamie
Sometimes there are areas that mortgage insurers won’t touch because of the perceived risk.
It is funny you mention Mt Morgan as at some stage over the last 12 years i used to own to half the town and my SMSF still owns large chunks.
I can certainly tell you some stories about the town!
I still ask myself the question with the products available in the market why the budget limit is 100k.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi DK
Yes you are correct at least 20% deposit is required however away from that you would want to credit score up well.
I agree with JacM you could certainly do a lot better.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wilko
Hate to say since the inception of the NCCP legislation if it is a coded loan it wont make any difference if you go to a big or smaller lender every lender is going to want to see suitable serviceability.
Couple of private lenders we deal with take unemployment benefits as serviceabilty but the rates are ugly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
