Forum Replies Created
Hmmm…. I think all mortgage brokers have been asked not to disclose the full facts. I had someone call me last week and ask if he could buy a home and claim the FHOG. But his defacto has already received it in QLD. But he said that was in a previous relationship and it wasn't fair he couldn't claim it. Yes, she was going to be on the title and be a borrower on the loan. But he doesn't want to pay stamp duty and miss out on the $7k. Mmmm….needless to say I quoted him the full stamp duty in the loan pack I sent him and I probably won't hear back from him. This isn't the kind of business that I do.
Hi Paul, If you are going to fix then it is a good idea to access the equity you need for renovations at the same time. You could have the existing loan fixed and then a LOC or an interest only loan with offset for your renovation. Fixing removes the flexibility and you don't want to get stuck and then not be able to borrow what you need. The only fixed rate loan that I know of that has full redraw is Heritage Bank. But fixing for 5 years is a very long time if this is a property that you will be renovating and creating more equity. Can you see 5 years into the future? Make sure that the fixed loan is exactly what you want as the penalties to move or sell are extrraordinarily high. Talk to your broker and go over all your plans and goals for the next 5 years before you make a decision. Good luck.
Hi Lila, Is the loan secured to both properties? If you split the loan and don't cross-collateralise then your mortgage insurance premium will be lower. The lower the loan amount the lower the premium.
Hi Sandtrackers,
The Property Investor Network meetings are available again and our next one is on Tuesday 20th at 7pm at the Perth Convention Centre. It's free to come to the meetings, there is no hype and hard sell and there is free information on our website that may be helpful for you. We have a speaker each meeting that covers one area of property investment.
It's quite casual and a good way to meet other investors and learn more about property investment. I can have a chat to you on the night.
If you would like to come along please email me at [email protected]
Kind Regards,
TraceyHi RyanJD,
If very important that if you use the current lender you don't allow them cross-collateralise the properties. They may tell you this is how it is done and yes that's true in bank world but it's not the only way and you need to protect your position and keep the flexibility to change, sell or refinance in your portfolio without getting "permission" that can be required when you cross-collateralise. The best time to avoid this is right now when you are buying your second property. Consider using a different lender too.
Whether you pay the LMI or not it depends on your personal choice and your plans for the next IP purchase. Sometimes it is better to use LMI and have the cash for the next purchase or have a buffer available in your own bank account as your own insurance policy. Don't leave yourself with nothing to fall back on if something goes wrong.
Best of luck.
Tracey
Hi Property Info,
Westpac also has 10 yrs Interest only with an offset account.
Brokers can negotiate with banks for you and as we are often doing this can advise you on what likely interest rate discount you may receive. The LVR, loan amount can impact the amount of the discount and it depends on the market.
The banks are pricing, offering cashback for refinances and waiving fees right now. We are in the middle of a bank war so take advantage while you can.
Kind Regards,
TraceyHi,
Sounds dangerous and yes if you have it right is sounds like a scam. Be careful.
If you are going to buy and hold just do some research in good metro areas.Kind Regards,
TraceyHi WinnY,
You don't have to inspect the property (although personally I would if it is in the same area as I live). Your brother can make a verbal offer and the agent can come and visit you both after hours to sign up the paperwork. Yes, agents can do this to sell a property. If all property could only be sold during office hours when most people work it would cause some difficulty.
Not sure where you are buying but market has been slow in a lot of areas and the agent would probably jump at the chance to come over and sign up the paperwork.
Hope this helps.
Kind Regards,
TraceyHi Noobie,
Why don't you give Stuart Wemyss from ProSolution a call. I believe his firm is financial planning and mortgage brokers and he is well regarded in the industry. He used to come onto the forum a bit so you may see some posts from him. He regularly writes for API magazine. I think he has a few specialist brokers working in his office in Melbourne. Don't know the location but I am sure if you google him you will find out.
Cheers,
TraceyHi,
I saw some brand new apartments a couple of weeks ago called Southpoint apartments. I think they were in O'Connor or Samson. I was thinking Kewdale, Bentley, Cannington, Hamilton Hill and the newer areas down around Success. There are definitely new or almost new apartments in Success for around $310K – $320K. Right near the train and the Gateway Shopping Centre.
You can buy renovated units in East Fremantle for that price or you could a few weeks ago. It appears that the market is quite hot under $350K. It's more affordable. But I have not done any research myself. It's more what clients have been buying and talking about over the last couple of months. Check any new developments or renovated places in around Parkwood and Riverton. Thornlie maybe too.
I hope this helps.
Cheers,
TraceyHi Housegoodies,
I believe that the warning is about the type of housing in Balga as there is a lot of government housing. Typically areas like this would have lower capital growth. You would need to be very careful choosing the property and check out what is next door and behind too.
There is a lot of sub-division going on in Balga but I doubt you would pick up those properties that can be sub-divided into 2 or 3 for such a low price. Check the R-Codes and contact the council. Drive through the area and look at the streets that are better. You would be relying on the property being able to be sub-divided now or in the future to get good capital growth compared to some other suburbs in the area. It's no Cottesloe.
If you are just looking for an IP at a price under $350K you can probably pick up a nice new villa/townhouse in some areas around Perth. I have a bit of experience as an investor as would a lot of people on this forum and my experience is that a cheap old house in a cheap suburb will attract cheap tenants and very expensive problems. What you save in price you will pay in the lower return and the lower capital growth.
Cheers,
TraceyHi William,
I originally thought that there would be no more low docs after 1 July. Perhaps that will be after 1 Jan 2011. I think it will definitely slow things down in the low doc market as brokers will be asking for BAS statements and bank statements now.
I notice that you have licensed finance broker on your post.
Probably in your signature? I suppose we are all going to have to take change that now as we are no longer licensed in WA.I wonder if anyone will change it to something other than finance broker or mortgage broker.
Maybe "ASIC registered credit assistance providers"? Sounds silly. Until you become a credit representative or Australian Credit Licence Holder? Hmm… Doesn't have the same ring to it. I think I will stick with Finance Broker.I received a letter from WA Dept of Commerce today. The are going to refund the Finance Brokers licence fees pro rata if you apply by 30 September 2010. Don't let the State Goverment keep your licence fee make sure you go to the website http://www.commerce.wa.gov.au and download the refund form.
Cheers,
TraceyHi Mrs Property,
There are some free spreadsheets available on http://www.propertyinvestornetwork.com.au
Hope this helps.Tracey
Hi DGE,
It is possible to consolidate the LOC into the home loan. You may be able to restructure this within the same lender and reduce the interest rates across all accounts. Interest rates have just increased though by 0.25% with most lenders so the rates will be higher than these you have listed. If you did this direct with a bank you may find you are cross-collateralised and you could change each property to stand alone security at the same time. This would give you more flexibility to access equity in either property for further investment If you are paying monthly fees on each of these accounts it could save you money on fees too. I would suggest you get a broker to do this for you.
There is a property worksheet available that can be helpful if you have several properties or loans. Go to http://www.propertyinvestornetwork.com.au and download the property worksheet.
Cheers,
TraceyHi Peter,
What state do you live in? Are you looking for a new property or one that you can add value to?
I may be able to refer you to someone and I am sure there are a lot of other people on the forum that can make recommendations too.Cheers,
TraceyHi Kim C,
I agree with the points Richard has made.
You didn't mention if you live in the area or not but have a look at the suburb as a whole and even contact the existing tenant to ask how things are going with the property. There may be other owners/tenants in the building that you can talk to.
Most people are happy to answer general questions especially when you mention you are thinking about buying the unit in the same complex.Good luck.
TraceyHi Wealthyjvd,
There are quite a few requirements to become a mortgage broker.
Cert IV Financial Services
MFAA membership (and an existing MFAA to mentor you)
Professional Indemnity Insurance
COSL Membership
Accreditation with the lenders
Sequal accreditation (if you are doing reverse mortgages)
ASIC registration and licence (this year ASIC is starting the process to licence all brokers)Many of the lenders have volume hurdles to retain the accreditation. This may be made a little bit more difficult if you are only working part-time. Perhaps working part-time for a busy brokerage would be better than working for yourself. They would be able to mentor you and provide you with the training and leads – you get paid less commission but you get the experience and its easier than starting a business yourself.
Kind Regards,
TraceyHi Moose,
There are quite a few problems with some builders at the moment. They had a huge rush with the end of the First Home Owners Boost and it appears a fair few of them have signed up too many new customers and cannot deal with the demand.
I would request the deposit back. Speak to the manager of the sales person and request the refund.
You can make a complaint about the building company. Go to http://www.commerce.wa.gov.au and click on consumer protection.
Do a search for the complaint form – you can make a complaint about the company.You will notice that the builders commission is on this website too. They handle the builders registration and licensing. You may be able to get some assistance from them too.
Good luck
Hi GOM,
Thanks for the question. Yes, It is possible. I have contacted the bank and double checked this prior to making this post by way of requesting a question answer format which I am pasting below. I have asked questions which I think will cover what most people would want to know.
The bank's reply is in red. I have not changed the wording at all these are the exact answers. You can email me directly if you have any questions. I am an investor too and a licensed finance broker working with investors for 8 years, this is fair dinkum. I hope this information helps you or other investors thinking about purchasing a small block of units to acheive your goal (and get a better return).
1. Will Commonwealth Bank fund an 80% LVR full doc loan on purchase of 4 established units on a single title which is 100% of development? Yes (established only, no construction).
2. Will Commonwealth Bank fund an 80% LVR full doc loan on purchase of 4 established units which are strata titled which is 100% of development? Yes (again, established only, no construction)
3. Will Commonwealth Band fund an 80% LVR full doc loan on purchase of 6 units which are strata titled with is no more than 25% of the development? Yes.4. Is 6 units the maximum amount of units that Commonwealth Bank will fund in a single development? Typically Yes, but we will consider more than 6 (as long as they’re not more than 25% of the total development) on a case by case basis.
5. Is this available in personal names, companies and trusts? Available for Personal, Company and Discretionary & Unit Trusts. (No Hybrid Trusts)
6. Is this a residential investment loan at the residential investment rates? Yes.
7. Is 80% LVR available for metro, country and inner city? Metro and Country is fine, Inner city will depend on the type of unit (ie: Student accommodation is only 70%, Serviced Apartments may be as low as 50% depending on the Leasing Agreement)
8. What is the max loan size available for this purchase? (without going to LMI) 80%. There is no $$ limit.
Please note: This is the lending policy today, in the future it can change. Anytime you are considering a purchase like this get your broker to run the scenario past a few lenders so they can get the updated policy. The banks change the rules all the time.Best Wishes,
TraceyHi Richard,
I think you have misunderstood my post but no harm done. I don't want to have a disagreement. I didn't say it's impossible to do 6 units. I was replying directly to the original post to let them know it is possible to do the 4 units at 80% LVR at resi rates with Commbank. Just trying to help a fellow investor who may need help
Kind Regards,
Tracey
