Bankwest is probably one of the poorest lender for such a development; due to inflexibility, no upfront val and also credit policy can be all over the place.  

Also not sure what you mean by end value??? this is a RESIDENTIAL construction loan right?

Your only possible option based on what you have given and at such a high LVR, would be…[Read more]

Positive
– Ok rental yield
– Dual service apartment tends to attract a better yield
– Owner can live in the property x number of times a year ( not sure if this is considered a benefit lol) 

Negative
– low ( in some case no) capital gain
– High maintenance cost; most will have a agreement to repaint and refurbish the apartment once every 3-5…[Read more]

^ good suggestion Jamie.
I would be more incline to try AMP and take advantage of their upfront valuation first- as you mentioned the valuation has failed twice already with 2 another lenders??

Sounds like your having a serviceability problem?

Change your loan structure from I/O to P/I – might get you over the line….really depends how tight your serviceability is and which lender. 

Hi,

Not a pro..but undergoing my 1st  subdivison via the Hornsby Shire Council  as well ( Cheltenham)…and i can tell you they are a pain in the ass! my land is 1,250 and it's a corner block with 2 street access – took ~5 month..

You should DL the DCP ( Development control plan) it explains EVERYTHING! Hornsby has 8-9 different DCP depending on…[Read more]

Funny enough, i got my roof restored and painted only 4 month ago with Modern Roof ( largish company in Sydney) http://www.moderngroup.com.au/roofing/roof-restoration.aspx.

Quoted me $19,000- neg down to $11,500 ( for a massive place and extremely high pitch roof- 1960's style place); job finished in 4 days no hassle..a bit expensive but it was…[Read more]

Negative Gearing was removed/reduced when Paul keating was PM- Back in 1998? sorry not 100% sure about the date…def before my time

JPS25 wrote:
Got past the solicitor who was against NRAS on the grounds that it was social housing

*slaps forehead* NRAS is NOT social housing…

To be eligible for NRAS, the tenant NEEDS to be working….

From an insurance point of view- even if you have "Rent default " , the rent need to have defaulted for more then x number of weeks ( standard is 4- but it differs insurer to insurer) before you can claim, as your bond should suffice. 

Paradime wrote:
Michael, other than Citibank, which other institutions are you referring to that go to 85% with no LMI? and do they accept NRAS security at that level?

However original poster only mentioned NRAS was for their CURRENT property…the new property they are buying is not NRAS ( from what i read) . 

Hi Mat,

I'll  won't comment on the finance, capital gain or investing strategy side of things as you seem more interested in the fees.

Some of the standard fee and cost with Over 55's- 

* Strata – self explanatory

* Special levies,  sinking fund– self explanatory HOWEVER it's slightly different for over 55's in that once every x number of…[Read more]

wilko1 wrote:
i was under the impression that if you did a straight forward one for one security substitution that borrowing requirements were relaxed. I.e You wouldn't have to provide documents proving income/payg or self employed income again for the substitution to occur. Just a valuation to show the new security is of the same or greater…[Read more]

You are required to live in the house for a minimum of 6 months in the first 12 months. So no you don't need to move in straight away; however there are Capital gain benefit ( and the 6 years rules)  that you may have to weigh up and consider. 

Have your accountant advised you on the cons and pro of setting up a trust especially if your planning on selling 3 of the units??

Boarding houses with management right and short term rental will be treated more like a "business" loan rather then a commercial loan; so if your after a true "boarding" house with less hassle- aim for one with medium-long term residental  rental rather then your "motel/backpackers style" boarding houses. 

Personally for my capital growth properties- i prefer to invest in the dip of an upwards market, meaning not the bottom as such as it's hard to predict where the "bottom" really falls…so i rather invest when the market start to pick up and increase = instant capital growth = equity.

Regarding trust, it will depend on your personal circumstances…[Read more]

$1,700 ….thats one costly structure…
Save the $1,7000 and switch bank i'll say….80% LVR on NRAS is freely available ( interest rate as low as 5.39% fixed or 5.60% variable)  + there's no need to cross securitize your loan…

+ some banks do offer no LMI up to 85%…

Off the top of my head…

1. Originally money can';t be borrowed for any renovations ( structural or cosmetics ) 

2. As of 12-18 month ago ?? they changed the rules…Money can be borrowed for REPAIRS only ( including structural repairs) 

One of my client required a certified engineers report before they could carry out the repairs as borrowed…[Read more]

Hi Jason,

I understand your frustration, however given that it takes a good 2-4 hours ( research, calling, confirming with the banks, evaluations, writing up the recommendation)  just to plan the preliminary strategy and recommendation per client, it make sense in certain circumstances to ask for paperwork as " commitment". 

Most brokers i know…[Read more]

Im in Richard's boat…i don't quite understand the problem your having Carole…
Having an unconditional contract and having an unconditional loan approval is completely 2 different situation! 

From the sounds of things, you dont even need a bridging loan! as your about to settle (buy) and sell within a 2-3 weeks timeframe….not sure why the…[Read more]