Hi Sk2. Congratulations on making the move to buy. There are a few issues with 100% homeloans, which I will touch on for you. Firstly, you will find Wizard and St.George are the two ‘main’ mainstream players in this area. I should also warn you to make sure you check comparison rates. For example, the Wizard Clear value loan, which is an excellent product, has a interest rate of 7.39%, and comparison of 7.42% on a 250k loan for 25 years. IMB, quote 7.37 ….the same loan has a comparison rate of over 8 % !!! (8.02) Also remember the monthly fees also – the Wizard loan has none.
All that being said, the main areas to be concerned with are as follows.
1) You will pay significantly higher Lenders Mortgage Insurance than for a 95% loan. Even tossing in an extra grand or two into the deal will reduce this.
2) Some areas (postcodes) have lending limits for 100% loans. Ie you may find the LMI company will lend $200,000 for a 100% loan in a given area, but $300,000 for a 95% loan. This can put a stick in the spokes.
3) If there are not many comparable property sales in your area, the mortgage insurance companies can decline your application, as they don’t want to take the risk as they believe that the true value of the property cannot be confirmed, and of course don’t want to risk losing money.

That’s about it. I think you would be hard pressed to find a loan with much better value, and as you are no doubt aware, it can be ‘split’ into two parts, such as variable and fixed interest at no cost either.
And as a general tip irrelevant to the LVR of your loan – get a preapproval BEFORE you go looking and making offers. It can save heaps of heartache.
All the best with your new home plans![strum]

Hi Michelle. Sounds like it could get tricky. From a totally removed viewpoint, if the plan was to sell, then buying you out at half of a current market valuation would be very reasonable. You could always offer a slight discount as a partner too I guess at your discretion. naturally, they would benefit from the current market being lower with a val at this time, and you would miss out on any future capital gain – so it is hardly what would be called unreasonable on what essentially was a business transaction. Get a couple of independant property valuations if you can both agree on this method, and go halves. That’s the theory. All the best.

Hi Anne. Welcome to the forum. Congratulations on your position – I’m not jealous either…..[headphone] A bit of general ‘sounding board’ type reply is-
1) Don’t rush into spending it all – your priorities and goals can and do change with time. Have you set goals? Not as silly as it sounds, you don’t have to show or tell anyone else.
2) Investment properties are obviously great, but in all fairness, why would you want to pay someone rent when you could own a modest PPOR instead of a 1.1 mill one outright, and depending on where you are looking at investing, also own several IP’s outright, and then lever off them later to get more?
Food for thought. In your position it does not sound like it has to be one or the other. All the best with your journey. [strum]

Hi. Have you checked out the huge rental estimates and exhorbatant ‘finders fees’ the website in question also features? Just my humble opinion. You may find it much more economical to use a genuine buyers agent, that finds a property to suit your requirements. Not sure what else you were mentioning or replying to, but thought I must mention this. All the best.[strum]

Hi Wylie. Too true I am afraid. They are not suitable unless you want to use them for a shelf or book end, but as for cooling……
I think if you got a basic split system you/he would be pleased. Alternatively, a wall mount cooling only refridgerated one would save you $ and work well too, although big hole in wall…..[strum]

HI all. Interested in Gtphysios comments. What part of NW Tassie did you buy in? I’m guessing Rosebery or Queenstown at that price. The real estate guys that cover those areas I found don’ t seem overly interested in the first place, which is why I ask. None seem interested in even going out of their way to send more than one picture, and expect you to buy on that – yeah right….We bought our 2nd prop in Burnie sight unseen, which we did after finding and using previously an excellent builder to do the prop inspections. True, a bit daunting though. As a sidepoint, the RE we dealt with, that we established a bit if a repoire with, said it surprises him how many (especially locals) do not even think of getting a building report done. [strum] Oh, and while it has been no drama, in all fairness, other than if using a trusted buyers agent, who pumps photos off like a madman/woman to email you/us something to look at, I don’t think we would do it this way again,,,,

Hi. As most here say, and I do too, it makes sense on all counts to keep each loan seperate, and not ‘crossed’. However, if it comes down to being able to secure a loan, as opposed to not being able to, sometimes cross colatorising a loan/propertys as security is the only way to achieve what is needed to be done. In all fairness, if you do not plan on actually selling a property for several years (or in the forseeable future) it really is no big deal, and can often save you on Lenders Mortgage insurance, and obviously reduce your LVR. (Margaret Lomas has some very interesting comments on this – that make sense too if you are not planning on doing a ‘buy and sell’.) I must take Richard to task (Sorry, I realise I do not have anywhere near his experience – I am not critisising…[exhappy] ) but you may find Wizard (please do not say GE..yes, I know..) are no different to anyone else in that at the end of the day, if a customer demands to do things a certain way, other than give them options, you cannot endorse officially a way of structuring property loans etc as it encroaches on giving financial advice.) If I can give you an example, I have been with the non bnak lender in question for a while now, and one of my first ‘big’ loan applications was for a client that involved a larger amount, and wanted to refinance his PPOR to finance purchase of another residence, to use for his business, after some renos. I listened to what he was trying to achieve, explained that he would perhaps be better off paying a bit of LMI and keeping both loans sperate, and owning one of the properties outright, even though in my gut I know I could have possibly ‘signed him up’ there and then crossing both properties, but did not. And do you know what? lo and behold even after allowing for a bit of travel to get there after hours, scrubbing one of my mag wheels on his gutter, (should have taken the Daewoo instead of the Ghia dammit) and explaining things as clearly as possible, he went with his bank (CBA) who strongly recommended cross collatoralising the properties, and his accountant also pressured him to do it this way. The only reason I mention that is to show that the old adage of ‘you can lead a horse to water but can’t make it drink; does apply sometimes with the borrower and their accountant, rahter than the lender. Cost me some time and money, and taught me another lesson in the school of life…….And as far as ‘no doc’ goes, Wizard do a ‘Lodoc’ investment loan at 70% LVR that simply requires a declaration of affordability – no income dec involved. All the best with your journey. Take care.[strum]

Hi Tancas. We did this ourselves once, in NSW, after having our home for 3 mths with an agent that was useless once we had listed, just wnated to have open houses all the time, and whose staff turned out to have the charisma of a car washing sponge, so if you are even the remotest bit enthusiastic about your home, I’m sure you will be fine. Again, the proceedure depends what state you are in, and I would strongly recommend using a solicitor for the paperwork to ensure it ges through properly when the big day comes (or a good conveyencer if legal in your state) Now…..All we did, was make up a website, with lots of pictures, (outside/inside/yard, night and day etc with the title ‘Nice Family home for sale’, and then ran two adds in two newspapers. (One local, one in the next town -much larger place) The adds were about 2 inches high, 2 colums wide, and simply mentioned the home description, our price, that it was a genuine sale, and directed them ‘See www …..etc for details and pictures’. We also made up a small sign for the front, but it was a cul de sac, so likely did not serve much purpose. The litle bit of money spent there is worthwhile. We had around 9 personal inspections, compared to 4 from the RE. Bit stressful, but so is being with an RE. In the end, it sold to someone out of town, that would not have known about it if not listed in their paper, and out of the other 2 that ‘nearly’ bought it, one of them was not local either. I should point out too, it was a very nice property, on an acre, and well above the median price for the area….If you can do it, go for it. (……and don’t be too greedy – [biggrin] ) All the best.[strum]

Hi Marc. Sounds frustrating. Are you actually missing out on properties for rent, or being knocked back. If it is the latter, it is true, your appearance will make a difference. (Each to their own, but sometimes you do have to look the part…) I recall doing a repair job at a real estate agent several years ago, and someone coming in, in a tshirt, unshaven, but seemed to have a nice young family, and the ‘girl’ behind the counter flatly told them no rentals were availalbe at the time. I kid you not, five minutes later a man must have phoned, and after qualifying with a couple of questions, this very same girl proceeded to explain they had several he may be interested in renting, and they looked forward to meeting him etc etc. Please do not take offense, but I thought that may be of some assistance. In all fairness, as long as someone is tidy and shaven (especially if it is a girl [biggrin]) I find it surprising that you would be having this amount of difficulty. perhaps try ringing the agents first? With your stable employment history, and situation you sound like an ideal tennant for a falt or unit I would have thought. Hope it all goes Ok for you. [strum]

Hi. I think you will find that if the casual work is within the same industry type, and he is not on any type of trial period, you should find things not too hard to work out with a good lender or broker. If it is for investment purposes, and you have enough equity to cover 30% deposit, I personally think some of the Lo-doc loans are good (grab yourself an ABN though) In this case, you often only have to sign a declaration of affordability only, (ie, no mention of income)and then use your existing equity for the security along with the other new property. Less than ideal in some peoples opinion having more than one security, but if it gets you what you want…..All the best ….![strum]