That’s 1.2% off their SVR! nicely done…

Regards
Michael

Who told you this? i wish it was this easy …would make some of my caveat deal easier lol

Regards
Michael

Hi Rob,

Firstly Welcome to the forum and i hope you enjoy your stay and can learn + share some extra ideas!

Looking at the rate you have quoting im guessing your going with ANZ? or Suncorp? and there is a restriction that your LVR needs to be under 80%? if so then i would say your best to pay a bit of LMI for what you want to achieve ( buy more IP in 4 month time) – as you need every dollar you can save for the deposit for the next purchase etc…

Regarding fixed rate; your broker is right to a point- if you fix then it’s financially not wise to move as the fee to break a fixed price contract is HUGE!! But having said that a Fixed rate can help with budgeting and can improve serviceability and borrowing capacity.

Regarding what you should do and structure; would def need more info to give you a correct reponse/answ.

Reagrds
Michael

1. You pay stamp duty on the portion your buying
2. Yes the bank needs to assess your loan again…so yes you will need a job for the bank to be able to “lend” you the money for the buy out.

Regards
Michael

twafy wrote:

Stuck on the serviceability issue, my broker reckons I'm pretty much leveraged to the max, (maybe need a new borker

I have 3 IP's and my PPOR, I want to get into CP+ properties in the mining ports Karratha, Port Hedland ect but servicing the loans would be an issue with the banks.

Having read much material on using equity after your IP has appreciated all makes sense and sounds simple enough but I've always come unstuck when it comes to serviceability. Once I've figured that one out I guess that's when I can quit my day job. Will keep searching for more creative financial solutions.

 

Your broker might want to give AMP a call

Regards
Michael

Side note there are many different type of pre-approval and to be honest most of them are not worth the paper they are written on- …MOST DONT DO ANY CHECKS until you find a place…

For example if you gone with Bankwest; they issue a computer generated pre-approval within 24 hrs- no checks just “calculation” based on the details YOU PROVIDED>

It’s not untill you find a place to buy + 10% then they wll ring your employer and confirm your employment details etc…

4/10 ppl with pre-approval do not end up buying a place, so it’s a waste of the banks time doing a full check at times.

Regards
Michael

Hi Grant and welcome to the forum.

You sure have some big and well thought out plans!!
It’s good to have big plans but you should take it slow and not jump stright into the deep end at first go…your only 20 you got plenty of time left up your sleeve to make money from property investing….

Property development is a totally different ball game, you can;t just read about it and expect it to go smoothly! your relying on a number of factors, each with it’s own possible problems:

1. Builders
2. Time frame
3. Council approval
4. Engineers and design- water pipe etc
5.Finance
6. Cash flow
7. Sales

I think it’s a better idea to start off with standard property investing strategy for your first one anyway and do basic renovations + maybe build granny flat etc … and really understand how “property investing works, ” in terms of finance, negative gearing, deprecation, management, tax, interest , renovations etc…before jumping in with the big boys.

It’s good to know how a deal could be financed; so you have something to work towards.

Firstly 40k deposit is DEF not enough! in fact your going to have to triple that!
Land: 280k
Build: Im guessing as a min $180 each — so 180 x 3 = $820k total outlay not including another associated cost yet ( stamp duty , council approval fee , DA, Soil test, Design ) thee cost are all state and council dependent– but as a MIN roughly $880k outlay.

You will not find ANY lender that will do a construction for a block of 3 higher then 90% LVR ( getting 90% LVR is not easy as well) .

YOu can either go via the commercial lenders who are slightly more flexible, but a lot more pricey or the residential lenders who have set “rules” but are cheaper.

A bank looks at the following for larger construction ( 3-4 or more are considered “larger ” construction )
1. Experience – so you may need to bring a more experience partner into the transaction…ie the builder
2. LVR – Keep it under 80-90
3. Plan
4. Pre-sales– not required given the size…but is helpful

P.s no you can’t supply your own material, everything needs to be included into the fix price contract; else the bank simply won’t lend on “anything you buy” ie you buy the material out of your own cost = less money for deposit.

Regards
Michael

Hi,

Is this a pre-approval only? meaning you have NOT found a place? and the bank has not issued a final unconditional approval??

The question of will the bank check?- WHO KNOWS …anything is possible. best to avoid problems so i would say hold off on buying till you have full or perm part time employment again…

There’s a famous case that only happened last year in which CBA declined to release the funds 1 week before settlement ( the guy had a UNCONDTIONAL approval) but of course one of the conditions is ” financial does not change leading up to settlement” – the guy lost his 10%.

There are some banks that will allow 1 day employment ( so no need to pass probation) as long as it’s perm full time and LVR is under 90%.

Regards
Michael

Def a student accommodation/ boarding house type of property. Even thought it may make sense in terms of the numbers…the security type is to risky as it’s ” out of the box” – Even some insurance company would look at this as ” out of their policy/ risk”.
To finance this sort of property you need to go down the commercial side of things unfortunately.

IF they were not rooms/ but rather 4 “units” on one title…ie a block of small units, then that’s a different story and the bank would be happy to lend on a block of 4+ up to 80% LVR at a pretty decent rate as well- One room = 15 squ mters? VS one unit = 40-60 squ meters… a lot more “normal” for the banks.

The more Unique OR specialised the security is…the more creative you have to be when it comes to financing- bank’s don’t like specialised properties as it only attract certain buyers.

Ie not many if any Home owners would want to buy your above property, but it would attract some investors ( i say some, it can be a hassle to mange due to the number of ppl…getting strangers to get along with each another is not easy, yes different rooms but shared kitchen etc…)

Just look at the student accommodation selling in Broadway ( the lodge)- selling for $140,000- rent for $338 PW clear ….sounds greats?! there are literally 25+ of them on the market to be sold as of today 0.o

Regards
Michael

There 4 banks in aus that would deal with NZ security, 3 small banks and of course there’s the well known ANZ.

ANZ- note your broker may not be accredited with ANZ (NZ); as i think there’s only less then 5 ANZ brokers in AUS that’s accredited with ANZ (NZ) – im not one of them as well ….but i can refer you to one who is. PM me.

Else you will have to find a broker located in NZ. as per above post.

Regards
Michael