Good old Wendy Higgins — $1B in loans…and is expected to hit 1.5B in 6 years time – she hires 5-6 brokers…so i guess it’s a joint effort??- still a massive achievement!!!!

twothings – sorry to hear about your story with the first broker.. hopefully his/her is no longer in the industry.

One thing about the MB business like any business the “workers” tend not to care to much; it’s only a JOB to them….however when you deal with the principle/owner of any business there reputation is on the line…

So end of the day it’s not about should i go to the bank or a MB?- it’s more about the people….WHO is a good MB/branch manger. You can have great companies but the people you deal with will determine your result.

Regards
Michael

Umm i wouldn’t say that; unless your a really strong applicant.
Even though MOST bank’s are not postcode specific; it doesn’t mean they will reject your application because lack of sales- ie valuation.

Regarding LVR for mining towns, as Richard said it is case by case…no given fast rule.

Regards
Michael.

Location and security type alone will push this loan type into the Commercial side of things.

The rate for commercial will range from 7.8%- 10.5% +
SO your NET return is much much lower because of this Commercial rate…

Also the LVR would be def under 65%…more like 50% i would say for a 18×2 in Moore.

Hence why it’s still on the market

If you have the deposit may be worth looking into.

Regards
Michael

Hi,

I don’t think there be any organisation that specialize in disability pension; as it’s diff in all states and only a very small part of the population.
Just a few tips;

1. The disability pension is taken as a “salary” in the bank’s eye- once your on a disability pension it’s very hard to get off…and the income is accepted at 100% full rate

2. The income you get from your new investment is also considered an income

SO really you have your disability pension + rental income as your “serviceability” income….so the question is; is that enough to service your loan + afford for standard living expense? ie can you afford the loan if the rate was 9% ( 2%+)

3. the disability pension is also mean tested; so it’s a good idea to give centerlink a call to see what would happen if you buy this place…because this would affect your ability to make repayments

4. Since you have a bit of equity in your current home- a deposit is NOT going to be a problem; it’s more if you can afford the loan or not ( in the bank’s eyes anyway)

5. For a 10% Yield property it will be located in a rural area/ mining town Or you must have done some creative investing ( renovation/development etc)

just some food for thoughts.

Regards
Michael

How geared are they? 95%?
also have you done a valuation recently to reveal it’s value potential

Regards
Michael

ohh yea- didn’t read his 2nd post

therock1 – Why don’t you use your car and house and applied as a secured debt?

Regards
Michael

I have never seen any Unsecured debt go above $90,000 and even that was not easy ( strong job stability – 20 + years; self employed and good asset based but was tired up.)

With most WA client’s especially in the mining industry; it’s not about your salary or what you make ( as most are on $100-190k) but it more your job stability the lender is looking at ;

1. Have you been in your current job with same employer for more then 3 years?
2. What are the funds used for?
3. Can you service your current debt easily now?
4. Any asset ? car? property? and value etc

The max you would get with most Unsecured debt would be $20,000 – 5 years loans 12.5%- 14%.

Once you go above $30,000- it goes to private lenders and the rate is 2% PER MONTH ( short term) on a 30 days bill rate.

Regards
Michael

No real difference; as a matter of fact we use the same application form, same cal for serviceability, same product ( most of the time).

The only difference is:
1. Rate- SOME, i stress some…will have a loading rate during the construction stage – 0.1-0.2% more — note the bank makes the same amount of money from construction loan and normally loans….but construction loan are longer/risker and more paper work
2. LVR is lower – hardier to achieve a 95%
3. LMI provider do not like LARGE + muti construction …building 1 house or a duplx is fine
4. You need to have some spare cash for any short falls- expected.
5. Instead of one valuation, the bank will be doing multiple – 3+ valuation during construction
6. Progress payment instead of lump sum

So really the loan ” process ” is the same; but getting your loan ACCEPTED is a different matter-you do have to be a bit more creative as there are more requirements/tricks; not something i can list on a forum as it’s pages and pages long based on the lender and client’s situation.

Regards
Michael

Hi,

Having a discharged bankruptcy is not the end of the world; as long as you play the game right and find the right lender that fit’s their “books”

Generally speaking;

1. If you have good conduct for 18 moth + discharged bankruptcy for more then 3 years + stable job (2 years full time +…more the better) + one stable place of residence- then some of the major banks will consider + LMI will also do the loan at 90% LVR- the rate will be the same… no rate loading

—> Option 1 does sound like a perfect solution, but it’s still not easy to “fit” their books….from your post; you mentioned you have a part time business — so hence a declared ABN on your credit file….this the major banks + LMI WILL NOT like….it’s a “warning lights” that another business bankruptcy is possible.

2. This is where the tier 2 lenders comes in ( smaller lenders, credit union) – there are plenty that will even do 1 day Discharged bankruptcy- of course it all comes at a higher rate + LVR is much lower.

There’s no straight answers when it comes to finance- it’s all case by case….
It’s good to work out what you need ASAP so you can work towards that goal.

Regards
Michael

How many are you building?
What are you building?
Zoning?
How much?
What LVR?

Regards
Michael