^ auto rejection right there…and not only will it be an auto rejection, your credit file will be trashed with this personal loan- which means you will have to delay your plans for another good 6-12 month.

Going for an 95% LVR loan + LMI ( 97-98%) is not that simple…if getting a personal loan will solve the banks " deposit" problems, then us brokers will def be super busy!!!  

Going for a 85-90% LVR loan with a personal loan to fund some of the deposit is a difference story…but at 95% no chance. 

Regards

Michael 

If settlement is going to be delayed, it's best to let the lawyers know so that they can cancel the meeting….as the vendors, yours and the bank's lawyers/settlement agents will be present and it would suck for you to pay for their fees.

If settlement is delayed, the vendor can charge interest ( how much depends on your contract, but it's normally 10-15%PA)…most vendors are ok with 1-2 days delay and may not charge the penalty interest.

Regards

Michael 

I always use my CC to pay for all bills, including my IP's bills – Free travel FTW

It depends on;

– location ( of the land) 

– Who the builder is / design ( it's common for newly develop area to advertise as " hardwood homes etc…"

– Quality of finish

– comparative sales in the area

My experience with block of units is slightly different, and i think they are one of the best investment in terms of rental yield; 

– You can get residential rates up to a block of 6 with no issues.

– Block of 7 and 8  can still be within the residential space, but it needs to be a 2 bedroom units only and in a Cat 1 location. 

– The above only applies to single title…if the title is split then it gets a bit tricky

– Stamp duty is normally a touch higher, compare to buying one by one as the stamp duty is "aggregated" 

– Subdivision is sometimes possible, but depending on the council they will require a min number of car space, making the doors fire proof or fire safe, exit strategy within the building, new plans and one of the largest cost will be the pumping and drainage…it cost me $75,000 to subdivide a block of 6 in 2009.

– Maintenance can be costly, as Jac M mentioned they are normally older style apartment with no lift and over 50 years old – also since there is no "Strata" it's normally self managed or managed poorly by one agent. 

– You control your own "strata" and cost…

– Rental increase is a beauty! with block of units…small increase of $10-15 can easily multiple to $60-80 extra per week + discounts on agent fees

– One thing to mindful regarding these older style block of units…most will not have separate water meters …so you as a landlord end up paying for the water!! however it's cheaper to get Sydney water to change and add the meters in.

Regards

Michael 

http://www.fairtrading.nsw.gov.au/Tenants_and_home_owners/Home_building_and_renovating/Selecting_a_tradesperson_or_builder/Questions_to_ask.html

^ i normally get all my  construction/renovation clients to fill in the above

mrDeen wrote:

Hi all, FIrst post  

total 690K – equity is what i borrow. Rent should cover minimal repayments of the apartment.

Welcome!

^ there's one of your problem…it looks like the loan is gonna be crossed and if your going for an LMI loan as well, this crossing will be a costly mistake…let alone it's the wrong loan structure in the first place from a tax point of view!

Overall you should have split loans with I/O with the ability to take your new loan to a 2nd bank ( if required).

Shoot Jamie an email and he will be happy to get you back on track in a jiffy! 

Regards

Michael 

3 townhouses only…stick with residential, you don't need to go into the commercial side of things.

Residential =

1. Better LVR – Btw 80-90% depending on lender

2. SImplier – Standard consturciton loan with 5-6 progress payments

3. More flexibility and control compared to commercial – for small projects like this one anyway

4. Better rates = from 5.80% – 6.15% variable  

5. Better conditions = No presale required if you can service end debt. 

6. Financial cheaper to keep the property = 30 years term, with good rates

Hard to give you a solid answer without knowing the location, zoning,  strategy ( strata title? ) financial details and strength etc..

But generally speaking with  a  3 townhouse build, lenders won't look at past experience too much, they will be focus on the LVR, your asset Postion, the fixed price contract and who the builder is. 

Here are some softcost you will have to consider on top of your 10-20% deposit.

+ Stamp duty ( roughly $34,000 (VIC)  depending on state..

+ Demolish cost 

+ Council approval 

+ Section 94/ Contributions

+ Connections

+ Furnishings

+ Selling cost ( agent) 

+ Contingency cost 

Regards

Michael 

Australian banks will consider, but you really need a 20% deposit for your situation as you have been an ex-pat for a considerable length of time and the LMI will most likely reject the deal.

Regards 

Michael 

Very simple…the bank has the right to close off any remaining credit or lower the limit on your LOC when ever they like, standard terms and condition of most if not all LOC that i have seen -happy to be proven wrong.

P.s that’s why im more of a fan of the good old I/O split with an offset..but LOC has it’s place.

Regards
Michael