Don’t get me wrong though Macquarie has improved massively over the last few months and they are very easy to to business with.

Their DUA is still $850,000 but thats not full DUA and sooner or later you will have issues when you go into LMI territory which I see quite often with lenders that don’t have full DUA.

Since he has 5 properties already then it will definitely become an issue if he needs to access MI so AMP’s not the best fit for him.

Really like the new signatures steve. I think everyone is starting to like the new site.

jcso99 wrote:

Hi Shahin, I am currently working for a logistic developer in China and the company is listed in Singaporean Exchange. My salary is denominated in RMB. The issue i have with Westpac and other lenders is that they completely disregard my overseas salary cos they don’t take into consideration RMB denominated income, which absolutely kills my serviceability issue. Any thoughts?

Cheers
John

Ok firstly the real issue with AMP is that they are a securitised lender and they do not have their own DUA. Even if your application ticks all the boxes – the underwriter can still turn around and say “nope not lending you any more money”. I seen this happen to quite strong applications.

Not sure who has advised you that westpac do not accept RMB – as they do. I normally deal with HKD, Pound and SGD but know that they do RMB.

Westpac has has short comings as well so you need to really sit down with a broker and establish a long term plan. For example, Westpac do not like it if your rental income is more than 50% of your total income.

Sorry if this is a silly question but is it still unpaid or you have paid it and you are referring to the fact that the default is on your credit file?

If you haven’t paid it then you need to a) pay it off ASAP and b) concurrently talk to them about removing it from your credit file.

Who was the institution (i.e. finance or telco) and how much was the amount?

Your income is quite high and this is great so you certainly have areas in your application which hold weight.

Finally don’t apply with any bank unless you have a clear strategy of which lender you are going with. Unnecessary hits on your credit file will not help you.

Most lenders will want presales – there are a few lenders that will allow you to not have any presales however in those cases you would need to be able to service the debt without the use of the proposed rental income of the construction. Therefore servicing would need to be very strong.

"negative gear with negative cashflow"? I thought you could only negative gear with positive cashflow? Wait im confused. 

From the sand to the surf – you will love it in the CC. Very laid back and awesome beaches.

Since the properties are cashflow positive and not costing you anything to hold – then hold them and sell them only if and when another/better opportunity arises. 

A lot of people start flipping their portfolios gradually as they come across really good deals.

You also need to factor stamp duty, legal fees and building and pest inspection fees. These will equate to about 5% – so if you are aiming for an 80% LVR then you need to have around 25% deposit.

The only thing I don't get is why not go for 95% or 90% LVR loan and use less deposit. Less its LMI – but often cash is king.