Forum Replies Created

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 5, 2012 - 11:04 am

    Jacm – thanks for the insight. When you lay it out like that I can see how the banks may view my plan :(

    Richard – what do you reckon the likelihood of getting finance is in today’s lending market with 10% finance? Should I even bother or would you recommend just waiting and saving a further 5-10%? Will that even be enough?
    You mention there are plenty of lenders out there that might finance my venture but at what cost to me? Higher rates, less flexibility, lower LVR? Or is there actually a possibility of getting some sort of competitive finance and just a matter of knowing who to go to?

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 4, 2012 - 7:52 pm

    Thanks for your replies guys. I’m more than a little confused now though as I have two brokers telling me two different things. Richard is saying it shouldn’t be a problem getting a residential loan on anything up to 4 units on the one title and Shahin are you actually saying that I will more than likely need a commercial loan, is this right? I wouldn’t think I would have any chance getting a commercial application through based on my deposit and also because of the properties I’m looking at.

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 4, 2012 - 10:42 am

    Shahin – is this just in my case because of my plan and only with certain lenders or have the majority of lenders further tightened their lending criteria?

    Also, how come the number of units on the title has such an impact on financing?

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 4, 2012 - 10:17 am

    Richard – thanks for your reply. What do you mean by ‘credit scored’ as opposed to what? Not credit scored? I’m sorry but I don’t understand these terms.

    Also, I will be able to come up with a minimum of 10% deposit although I am wondering If you recommend only coming in with the minimum of 10% or putting down more? I could, but i wonder if I’m better off keeping the extra $$ for capital improvements as the blocks I’m looking at are definitely renos.

    Sorry, another question, if I can come up with a 10% deposit on the amount I want to borrow to finance the property and the loan amount is within my borrowing capacity will the banks valuation of the property still affect the approval of the loan if say the property costs between 5-15% more than the valuation? I’m still trying to understand how lenders might consider my plan.

    Cheers

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 3, 2012 - 7:54 pm

    I don’t have a specific property in mind for purchase just yet and therefore I can’t provide any exact details. From what I’ve been looking at though, I will be able to cover anywhere from a 12-15% deposit with the savings I have currently.

    Will the fact that I plan to continue renting out the remaining units aid in my quest for finance as I will be earning rental income which will help with repayments. Or will the fact that I may not be able to get a standard type of residential mortgage negate the perceived benefit of the rental income?

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 3, 2012 - 11:28 am

    Thanks for the advice.

    Any ideas on how i might go about structuring the loan/s for this type of plan?

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 3, 2012 - 11:09 am

    Shaihin – In QLD

    Richard – Thanks for the welcome and your reply. Thats good news about the FHOG from what your saying about your clients experience. Are you able to provide a little more insight on how you recommend structuring the loan/s for this type of strategy. What did you client do in his/her case?

    Terry – Yes, from all the info i've read on the FHOG i believe i would still meet the criteria under my plan although i was keen for advice from some professionals on here or others that may have already implemented the same strategy as the one i'm planning.

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 3, 2012 - 8:01 am

    The majority of blocks i've been looking at aren't strata titled and as such, they all come under the one title which is where i see the complications beginning to start . . .

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    September 3, 2012 - 6:02 am

    What would make me ineligible for the FHOG?

    I've been looking at between 3 and 4 unit blocks.

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    June 29, 2012 - 2:38 am

    thanks guys. Its pretty much what i thought, it can’t really be done as simply as transferring equity as cash to another person ;)

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    June 28, 2012 - 11:47 pm

    Yes, I’m interested in how the equity could be transferred as a gift to another family member.

    Scenario: ‘Bill’ has a $220,000 mortgage, his property was recently revalued at $300,000. Bills brother needs $65,000. Can Bill transfer his equity in the form of cash as a non-refundable gift to his brother? How would this be achieved and what possible fees/losses would be involved?

    This is not something i want to do, i have simply just been told it was able to be done but i couldn’t understand how it was possible

    Cheers

    Profile photo of rickimrickim
    Member
    @rickim
    Join Date: 2012
    Post Count: 14
    June 28, 2012 - 11:05 pm

    Hi Guys,

    Thanks for your replies. I am not trying to do this myself, someone had actually told me that it could be done but i just couldn’t understand how you could do it, as i don’t see equity as something that would be transferable. . .

Viewing 12 posts - 1 through 12 (of 12 total)