Forum Replies Created
Hi JAffa,
What state are we in?
Cheers
Kooz, without more details it is hard to say – however, if you had a 20% deposit (I know most dont – but this is an example) a regular income from full time employment, and can service the loan, ANY bank branch that can not give you same day (you may need to make an appoinment of course) conditional approval you should walk out an go next door to the next bank.
As has been mentioned, higher % borrowings, and perhaps other issues that you need to have verified by the lender can easy drag any deal way out itme wise.Cheers
Has the deceased been removed from the house? Yech – sorry, I know that was in poor taste.
Seriously though, if it is carpeted, you will likely need that replaced, and you would be amazed how much new paing absorbs smells.
We had a tennant that had dogs wizzing pon the carpet in one of the rooms – and no amoutn of cleaning could get rid of it.If it is a good deal, and nothing is under the house, negotiate and allow for paint and carpet.
All the best.
Hi Navy boy,
No fun thats for sure. As Terry mentione, it is a bit hard to give you to many specifics without more details – which you may not wnat to air here. However, I think the foremost thing to do is communicate via your local cba branch – and dont go in angry/obnoxious, as it does not achieve anything. The upset/dissapointed bit works heaps better.
Am I to understand you have two properties, crossed, two loans, and 86%lvr, and you are selling one? If so, the bank will likely want to revalue the remaining property, and then will require either one of the following…
1) Enough funds from the sale to keep your remaining loan @86%lbr OR
2) As above, but make it 80% lvr.EITHER way, this will not hold you deal up – they will simply say , 'yep, give us this amount of $ and we are good to go. Is there anything we are missing?
Cheers.
Hi coco bean,
Could be any where for your first investment…..no worng or right, but bear in mind distance can make things tricky if things dont go as well as you would have liked. If the sums add up and it is a good, sound deal, and you are familiar (or know someone who can hlep you/or is) with the area, does not really matter.
Bear in mind though, land tax can be a n issue to watch out for, depending on the state, and how many properties you have.
What is your budget like? Cos another factor can be the costs to buy, such as stamp duty etc – each state is different, and also each price point also affects your buying/closing costs. Go to one of the major banks, or the MFAA websites, and check out a 'home buying calculator' , run a couple of scenarios and you will see what I mean.Cheers
A really good question……
In theory, if you have a 'traditional style' bank loan, this would not normally be a problem – unless you request the bank revalues your property – usually that would only be if you are planning on borrowing more against it, cross securing it with another property, or if you have a business facility or revolving type of facility (such as a line of credit – which can be 'reviewed' every now and then.
I have seen some bad outcomes when property does come in lower thats for sure. Really though, in 99% of cases, for most residential property you will be fine. I would suggest if you were considering getting a property revalued by an exisitng lender/bank, do your homework first…..and if in any doubt…..dont.All the best.
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I think you might be talking about "Your Investment Property". I find it to be a great magazine, especially for someone like myself who is still starting out and trying to gain as much knowledge about property investing as possible.
[/quote]Yep Gezzy – youre right — I have'nt bought eitehr mag for the last few issues, but bought the latest 'Your investment property ' today – The cover looked good, and 'Twas a good read from the verandah this arvo!
Cheers
Qlds007 wrote:Hi KarenCould possibly be true as NAB dont do internal valuations unless the loan is Lodoc so maybe a problem with the loan itself.
Kooz may have this as a problem, as the above is no longer the situation – I am aware NAB has been asking for internal valuations (or even a short form val from a panel valuer in some cases) for a couple of months now – generally on the higher LVR or high risk / broker introduced deals.
So lets hypothosize (I'm sure I spelt that wrong…) THe Nab guy goes out to the rural area, once, may be twice in a week if you are lucky. (maybe even a special trip – depneds on the area). IF the tennant is at work, or cannot be there at the exact time the valuer/inspections person is there, and he/she cant get in, they won't hang around. I can easily see how with a bit of a misunderstanidng, and bad timing you could lose a couple of weeks there quite easily.
I have heard of great tennants being a bit uncooporitve with valuations as they naturally assume they are going to be moving soon anyway.Unfortunately, there is a slower application time now across the board.
If a good broker is found, the main thing they will be able to do is ensure you dont make the mistake of runing around wasting time, getting loan 'pre approvals' , (getting several credit checks done, which shows up on your credit file) , but instead working out which lender (hey, there's only four main ones now really, much as it really pains me to say) is best suited to your circumstances/situation.
Or if you are a 'textbook borrower' with a good deposit and asset position, they can simply find you one of the most competitive deals, Hopefully, they should be able to advise which bank is most likely to approve you, and then hold your hand throught the process, rather than going through the bank 'interrogation process' yourself. That is really the main advantage nowadays.Cheers.
Rates noitce (where it gets posted to),utilities bills/connection, your current residential address, (remember it is on your drivers license) Its no problem to prove if you are indeed living in the house and legitimately availing yourself of the grant. And you need to commence living in it for a period of 6 mths min, within 12 mths of purchase. (ie Buy in January, move in in November – stay in for 6+ months – longer if you are planning to live in it as your 'First Home'.
Hi GOM – I have, but must admit would not if I did not know the area a bit (Had an idea of the general lay of the land when we bought one property sight unseen) and always got a building inspection (and pest too – although not needed in Tassie!)
We did put in an offer a couple of years back on a place sight unseen, and got a building report which came up with too many issues for our liking. ….it was tempting to think 'if we dont buy we've wasted $400……but as pointed out in the above posts, a small price compared to buying a dog and regreting it long after the pain of losing a few $100 bucks has gone.Cheers
Hi Kooz,
THis is really a 'how long is a piece of string' question at the moment – although it should'nt be.
There are so many variables, and a lot will depend on whether you want (or mean) a 'subject to' approval, ( or conditional ) or an unconditional one. Unconditional means you have found the house, the bank has had it valued to their satisfaction (usually from the contract of sale if it is in the same state) and you have been issued with a formal offer, meaning the actual loan documention to sign.
Additionally, bank verification requirmements have also tightened up, also adding to dealys, especially if you have not provided the relevant statments, proof of income etc. That said, if you supply everything asked for there is no reason why you could not get an approval withinn 3 or 4 days, and then be waiting for docs from ANY bank – some will still do 'same day' or within a couple of days easy.
Having only a 5 or 10% deposit will take longer. Not all of the major banks have automatic lenders mortgage insurance – meaning you need approval from the insurer as well – there is another 4 or 5 days – before they even verify all the info you have given them – and then have to do a valuation.
Unfortunately, due to what has happened in the industry, loans forwarded or presented by mortgage brokers are considered to be a higher risk as well – which is reflected in assessments – and if you have made a few applications for 'proper' preapprovals and thus have a few enquiries on your credit file, this can add to dealys as your banker or broker sends your loan app to the lenders credit department to try and get the declined or 'defer/refer' decision actioned.
I had a broker I know recently forward me an application that had been with W-s-p-c for FOUR WEEKS without a response! HAve also heard CBA are quite slow at the moment.
The important lesson out of all this is under no circumstances should you let a real estate agent bully you into only putting 7 0r 10 days on your subject to finance clause – as it can simply be cutting things too fine. Maybe a year ago – but not now – times have changed. A good agent should appreciate this, or work with it on your behalf.All the best!
Cheers
I still reckon AAMI are pretty good, although I have got a policy with NRMA too.
Have found both helpful on the phone, although no claims made.
"my property' is also a good mag too. (or is it 'my investment property'?)
API and it are both a good read, and educational – but as there is such a wide and varied opinion on strategy, products, and 'growth figures' take it in all in with a grain of salt, and dont jump into anything just 'cos you read it in either mag without doing a bit of research / due dilligence yourself.SUbscription is a good idea.
All the best.Hi BB8
Your loan contract is simply breaking up the discount structure for you, as it is indeed a 'tiered one'.
For example, your Choice package margin is 0.5 %, and the tiered discount margin depends upon the initial size of your loan. You get another 0.2% off for loans in your package over $250k (as yours is) and that would be 0.1% for loans between $150k (altough there is a special on at them moment with loans from $100k ) and 249k.
This is an automatic discount totaling 0.7% in your case, or 0.6% in the other case mentioned. Smaller loans only have the 0.5%. It is just the way it is disclosed, and you get it automatically, without any negotiation.
IT is quite terrifying if you read a loan contract through is'nt it? All lenders can pretty much change anything they want at anytime is the long and short of it! Just as well the aussie banks are all safe eh?All the best with your new house.
Cheers
Banks will want to see full disclosure, a reasonable asset position for your age, and that you can afford to pay your loan. Not that it applies to you, but having a small or no deposit, credit cards with high limits, and a personal and or car loan chucked i n for good measure and applying as a 'new to bank' customer simply will not cut the mustard. Same stuff as if You were lending someone money. It sounds like you are 'good to go'. Not a big fan of introductory style loans, but if you are condsidering leaving after 3 or 4 years for some reason, and dont want a 'package' style product, maybe you should look at that. Or a 'base' style loan (CBA Economiser, NAB Base variable, ANZ SImplicity etc etc. )
Want an offset account and rate discounts? You will be offered a package loan – and the annual fee more than makes up for the discounted rate. Bear in mind, the 'discount' amount depends on where the rate is starting eh? You'll still get 0.7 with the better lenders.
All the best.PosEnterprises wrote:How about RHG are they passing on nothing as usual?I see NAB has just purchased a heap (may be that should read 'rather large bundle'???) of old Rams (now RHG) loans from their loan book and given them a fancy new name and website. Hopefully you may get some rate relief there in the near future. ?
Cheers
Hi Kell,
Be mindfull that a lot of people do not like (or want) polished/exposed floors in colder areas – as it really does make a difference to the heating required, and that 'cold feeling'. So in Vic, Tassy, and parts of NSW may be better of recarpeting your place.
CheersSo the above 'broker' advises gettng someone to convince their aged parents to get a 'lo doc ' loan so they can fund a deposit with someone with no savings? Did I read that right?
No wonder the industry is in such as mess, and we see things daily going on that have people loose what litlle faith they may have had in the industry altogether. I could add more, but will refrain – and certainly dont want to tar all in that area of the industry with the same brush………Fair dinkum……
Hi Jjlye
I must confess I too think it is exhorbatant. One agent has suggested I use their tradesperson and pay $75 twice yearly for a detector inspection. Unfortunately, this appears to be because it is for a qualified electircian callout – apparently a 'handy man' must not be able to do this. Just lloking into it on one now myself. Have an inspection due in a couple of weeks, so I will do the first one myself – but as you mention, it adds up, especially on a few properties.
I guess with 'legislation' there are not a lot of options – ie see below.The Building Code of Australia (BCA) and the Building Regulations 2006 recommendations are that a specialist and professional third party servicing and maintenance contractor should be used for testing and reporting of smoke detectors. The competent person needs to have such expertise and support as may be required so that the smoke alarms can be maintained in full working order, and if found to be defective, be quickly and competently returned to good order.
I'd be interested in anyone elses thoughts – especially options in a house that only has a couple of battery operated detectors.
Cheers
HI pawky,
As already advised, you would not be eligible for the FHOG.
If you or anyone wants to confirm this, may I suggest checking out (for NSW) the govt website.
Link is at http://www.osr.nsw.gov.au/benefits/first_home/
You can even download an application form – and it clearly goes through the criteria here. Any lender, banker, or broker based in NSW would be aware of this.All the best anyway – and maybe get in quick if you dont have much of a deposit, as some lenders are restricting loan sizes now to a min 10% deposit requirement (ie 90% 'loan to valuation ratio) . Unfortunately, others may follow suit.
Cheers
