Questions to general, need to know:
1. need to know a bit abt the deal ( no point saying CBA etc…if they don’t touch your deal)
2. LVR?
3. Loan amount
4. Location ( just postcode is fine)
5. Type of transaction- Investment or self uses? ( ie will you be running the business or renting the premises out?)

These are the basic 5 questions.

Regards
Michael

LVR = Loan to value ratio.
Ie $100,000 for land purchase, and make say max LVR of 60% — means the max loan ratio is $60,000.

Yes kit home is easier- as it’s consider more of a standard build VS a shed.

Regards
Michael

Info on where to buy? — > it be the same if your a O/S investor or not…makes no difference there, if you make money it doesn’t make a big difference who the client is. Money is money

Info on IF O/S investors are allowed to buy or not – > http://www.firb.gov.au/content/default.asp ( VERY IMPORTANT!)

I do a lot of O/s Investors transaction, especially from HK, China, Singapore, indo and Malaysia, US , NZ and UK- so a tip i can give is.

1. If your uncle is sending his kid to live here for study etc…may want to consider buying it under the kids name and funding it that way (depends on what type of visa they are on)
2. Currency ex-change is important
3. Remember there is still the Tax issue
4. FIRB- you can not just buy because you have the money…you need approval from the Board. ( see point 1 )- the process is straight forward but can be stressful,

Regards
Michael

Not sure…but yes def a lot of international buyers.

Regards
Michael

is he buying cash? or borrow (mortgage)?

Regards
Michael

Just cos the bank says you can’t afford serviceability doesn’t mean it’s true….only you know if you are struggling financially.
Don’t let a bank’s decision decide what and how you can buy….

Simple way of increasing serviceability without changing jobs/ increase income.

Top 5:

1. Reduce credit card limits ( and another debt)
2. Shop around for lenders that takes in negative gearing as part of serviceability ( not all bank does…)
3. don’t stick with one bank- most banks have a ” serviceability wall” meaning once you reach $700,000 in borrowing capacity the serviceability increase slightly ( reduce their risk)
4. Refinance back to 30 years- I/o
5. There are lenders that will service your loan on the 5 years fixed rate…rather then the “current SVR + 2%= 9%”

There are many more ways to improve serviceability- those are my top 5.

I seen ppl who has been told by 2 banks there serviceability is $0….but when i applied to the SAME lender with a bit of change they pre-approved the loan at $170,000 — another smaller lender that allowed negative gearing ( and had lower living expenses) which is what the client end up going to had final approved at $215,000!!

Regards
Michael

Simple- you just tell them you dont want to Cross…it’s your choice- if they can cross it means you have enough equity in the properties…so you can simply

1. Cash out the “Equity” and use this as the deposit for the purchase – make sure it’s a split loan with a separate offset account.

So you simply let St George bank know you dont want to cross and do the above…and they will do it, it’s not up the staff to say yes or no ( even though the staff may say no…as they do get extra “points” + it makes it easier for THEM for crossing the loans)

P.s check the letter of offer before you sign, make sure it only has ONE address as the security .

Regards
Michael

From a investors point of view- you first need to look at the basic numbers how each one affects you:

1. how much do you make?
2. How much tax do you pay and what will the affect on the tax be on buy 1 or 2 etc…
3. Are you and YOUR FAMILY willing to accept the possible change in lifestyle?
4. Your age? are you nearing retirement ?
5. Short and long term goal-do you need the money in the next 2-3 years? marriage etc….

A lot to think and plan.

planning is the key.

About the LMI; a lot of ppl think LMI is a curse …it’s not it’s like any insurance it provide you with a benefit– where is the benefit you ask?
Normally LMI cost around 1-3% of the loan amount depending on value and LVr…so let’s choose the highest 3%- yes you are down by 3% by paying this LMI …but remember LMi can be borrowed (capped)

1. the LMI is tax deductible
2. If the property went up by the average of 3-5% per year – then you make this “unrealised gain” back.

if we had a property boom or the property goes up in value; wouldn’t having 2 property be more beneficial then 1? of course…..yes easy said then to be done… always consider if you can afford it and how much strain it will place on your family and your life style….especially if you lose your job for 2-3 month.

Regards
Michael

It’s a US deal.

HI,

Firstly no lenders will not consider this as favourable sale…and will organise their own valuation OR use the sale contract price–which ever is lower…

secondly why consider low doc when you can go full doc?? unless u want to declare a higher income or your income from 2009-2010 has a massive change.

With 2 years ABN that’s enough for a full doc loan; however you may want to consider low doc if:
1.There have been a increase of more hten 15% bwt the 2 years?
2. It’s hard for you to prove the income that you want to declare?

Let’s work with the numbers.

1. IF you did go down the low-doc path…i know of only 2 lenders that will do low doc at 80% LVR BUT- i can tell you now the rate is def higher- like 8.8% + you will have to pay a risk fee ( similar to LMI— risk fee would be 2.2% of the loan amount)

2. However With no GST rego means you make less then 75k? if your married and your the only solo income earner on a 75k income you may not be able to service this loan on a higher rate of 8.8%

So with limited infor …i suggest you give a broker a call and work with the numbers to see if they can find you a suitable lender.

Regards
Michael