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My experience is that the lender will fund on the basis for the lesser of the 2; contract or val. That has been in policy for sometime, but havent come across any scemarios of that sort for a while so not clear where policy is today.
95% Is the pretty much the max lend on a residential ppty in mainstream lending channels. Be mindful that a 95% lend is a lot harder to get these days than in previous years. A 90% lend is a better LVR as it opens up the spectrum of loan products across all lenders so if you can get in there it will be a better all round result for you.
There are schools of thought with cross securitising, one saves money but creates servcing restrictions and obviously all securities are tied, the other costs a little more each transaction but can ensure you maintain stronger servcinging results when arranging finance. It also means that an individual lender only has the single security to fall back on. the biggest thing with splitting funders is knowing where to go to maximise your servicing criteria.
Feel free to drop your email if you want to discuss in a little more detail.
Regards
Hi Lisa,
You have received some very good feedback that I hope will assist you in your portfolio development. The progam that Destiny run is for all intents and purpose a pretty good one and Margaret Lomas is by far an away my biggest influence as a personal investor and professional broker. I have been involved in property as a personal investor since 1995 and as a professional since 2001 and the way in which Margaret approachs the subject is, in my opinion, very very good. Compare her with other groups discussed in this forum or the 'Investment Property Specialists" that actively market and they are worlds apart.
The fees may seem high but for a person that taps into the resource and knowledge it can be quite beneficial, however reading the books can lead you to the same conclusions, just along a different time line. I mentioned that I use her strategy and the most recent purchase is page for page from one of her books. It lead me to a purchase that had a 7.2% rental yeild, in one of Australias fastest growing regions, and the same property 5 doors down, sold at a $95,000 premium to what we paid exactly 10 months earlier. The above was acheived creating rules and remaining detached from the property. It ends up being a process of elimination.
The principals that you are exposed to through this group are market principals, not personal opinion, or the next best thing type of recomendation so I would recommend using her 20 must ask questions. However I do not believe that you need to buy all of the books and go to all of the seminars, it sounds to me like our colleague here has not yet taken the step to buy.
As a broker these are the principals that I discuss with my clients and generally it is the pathway of research that we do with our guys. We have no involvement in the property selection other than doing the analysis on the cashflow and comparing that with the other property selections the client has pulled out of the system. We have had a number of property settlelemnts recently and everyone to date feels confident about their investment direction. Its great stuff.
I would encourage you to get out and do the work, it is really rewarding, there are some wonderful opportunities out there at the moment for investors and the information is a click away. I am more than happy to answer any questions you may have developing your research criteria. It is a simple step by step process that, I believe, gives the investor a lot of confidence in their endeavours.
Best of luck, if you want to swap emails feel free. Happy to discuss at any time.
Regards
