Maybe the vendor just lent him the deposit. If the title was in his name, then I think this was what happened. This would not be illegal – even in SA.

Terryw
Discover Home Loans
North Sydney
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try

http://www.creativerealestateinvesting.com.au

Terryw
Discover Home Loans
North Sydney
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Damon

I didn’t know the govt still discriminated (except in super), I thought a defacto was a defacto.

Terryw
Discover Home Loans
North Sydney
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hi Freedom

Not many people get fixed rates on low docs. There are a couple of good lenders out there such as:

Integris Low doc
Var, 7.30%
3 yr fixed 7.57%
5 yr fixed 7.73%

Macquarie Bank Low Doc
Var 7.30% (this rate gradually drops by 0.8% over 3 years)
3 yr fixed 8.05%
5 yr fixed 8.15%

If you were to fix with Macquarie, you would not get the discount in rates until you came off the fixed period. So it may be better to go for the variable, as this works out to be 6.50% at current rates after 3 years.

Terryw
Discover Home Loans
North Sydney
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Bill

I have had a few similar problems. It seems that there are some virus’ going around. (I have the latest VET program, but have been receiving a few)

Terryw
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North Sydney
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Skippy. yes you could use the LOC. The bank may try to use the contract price, but if you say you have done some substantial improvements you could get away with a new valuation being done. But you also have to convince the valuer it is worth more than you paid for it-thats the hard part.

If you are going to sell an option over the security property, then you will probably need to inform the bank and/or get their permission to do this. Read one of your other mortgage contracts.

Terryw
Discover Home Loans
North Sydney
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It depends on the security. Most banks have business type loans at slightly higher than normal rates, but these must be secured on property.

Then there is the option of just using a LOC secured on your home. These can be as low as 6.47%, but most lenders will not lend if you say the money will be used for a business (due to the high risk).

It is very hard to get a loan secured on the business only. It can be done for some of the big franchises apparently. These loans are like personal loans and the rates are high.

Terryw
Discover Home Loans
North Sydney
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Yes that sounds correct. Depending on the postcode, you will probably need at least 20% deposit for an inner city place.

Terryw
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North Sydney
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Yes the site fees would be tax deductible if you were renting it out. But these sort of investments are high risk as you basically have no security. Depending on what sort of contract you have with the park, you could lose everyhitng if the place closes down.

If you are only going to make $2000 per year for $40,000 investment, then that is only a 5% yield. You could get that with any old bank term deposit these days and your funds would be returned at the end.

Terryw
Discover Home Loans
North Sydney
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Elves

Sounds like your cross securitised.

Any lender will be able to lend you more than 100%+ of the purchase price if you are using two or more properties. I htink Young Investor was referring to 100% finance based on the one security.

Terryw
Discover Home Loans
North Sydney
[email protected]