Forum Replies Created
hi Richard
Thanks very much for the reply. i will get onto them
cheers
Hi MIck.. Thanks heaps for that. I was thinking it was something along those lines although they never advertise their full details (that I could find) online. That helps heaps though.
Is this all to do with who their reinsurer is and their guidelines?
I thought commbank self insure quite a bit of their deals?
Hi Benny. Thanks for reply.. I think their concern seems to be what I may use it for??
I didn’t think it mattered..Property val is 320k and loan is 230k.
Just wanted a line.of credit to bring me up to 90% LVR
Serviceability isn’t an issue
Thanks for the reply Kinetic.
The IP 2 has had the bank valuation so that is confirmed. I am happy pay LMI. For me it is a necessary evil.I think I understand the LOC part now in regards to have separate loans to avoid CC although the tax deductions on the stamp duty interest I am still unsure about as I thought it wasnt tax deductible
Hi Terry. Yes, that is the point I am trying to make. A good broker wouldnt have had this issue. I believe a broker should be able to advise their clients after understanding their needs what they should and shouldnt do. I have spent the best part of 10 years in the real estate and insurance industry and all too often see negligible advice given to people who put their complete trust in these professionals.
And to reply to Catalyst, I think you may have read the thread properly or may be making a different point. The build wont take 2 years . The loan was fixed for 2 years. The build is ready to start and will be done in approx 6 months but the bank wont finance the build.
In normal circumstances a broker would take the business elsewhere. ALthough the loan is now fixed, hence the issues
Hi Terry.
I will have to disagree with you there. People employ “professionals” and I use the term loosely for some people , to guide them through this process ( and other complicated things like insurance and accounting) and provide them with quality advice and limit risks.
What good are brokers if they arent helping the client avoid issues like this?
Are they there to just fill out paperwork? Some brokers get generous commissions for the life of the loan and should be providing value for the financial benefit they receive.From what I know is they havent declined the loan , just the build portion .
Will keep everyone updated aswell for future reference, and as Jamie has stated, Definately shouldnt fix a land loan when planning to build
Hi Guys
thanks again for the replies so far. I have sent my friend these. As it is all new he is yet bto confirm with the bank if the deal was put in as a house and land package. Its a new estate in penrith so I cant see while it wouldnt have been done like that.
Seems unusual that no one else has had an issue with Val as yet.
I think he may have paid a 10% deposit on the land. He also had to pay stamp duty as the land registration has taken so long (he is FHB)
The land has apparently gone up $20k according to Val. Its the build that is the problem.
Should his broker have entered the deal as house and land? I think (apparently) he has done that. Is it then the banks fault for allowing the deal to be written for only land
Surely there is some duty of care along the way from someone?
If the other buyers Vals have all stacked up wouldnt there be a way to dispute his Val?
Thanks Michael
Its not so much declining the "dual occ" but its the reinsurers because I have got less than 20% deposit
I had no plans on buying dual occ hence going through bankwest so just a bit of bad luck
Had 2 home loans through CBA with good record plus $40k savings and $25k usable equity with property with CBA.
I can afford to chip in 12% deposit for loan so hopefully CBA see that as enough and previous history is good enough to get me by
Will know in the next few days I guess
Hi Guys
Just to give you all an update.
Bankwest declined the loan due to the dual occ/dividing wall between the property which makes it dual occ
I can only go off what my broker has told me
Waiting to hear from commbank.
Hopefully they will be ok . fingers crossed
Thanks MIchael
I have 40k cash and 23 k equity so could have squeezed a 90%LVR but went through bankwest because apparently allowed 95% LVR with LMI
Awaiting there response … didnt even consider the dual occ issue as this deal came on very quick and wanted it done before weekend but will see how it goes
My broker said it bankwest Val comes back at 380k and dual occ is the only issue then commbank should be alright with it hopefully
I assume commbank more room to move with riskier deals as they are a bigger bank . I remember 4 years ago bankwest actually knocked me back for a deal due to my investment partner only being part time and commbank took us on so maybe with the track record there that will go in our favour
Still have current loan with commbank
Hi Guys
Thanks again for the comments
Shahin – I think the issue arose when there was 2 different lease agreements supporting the rental income as the valuer hadnt been out as yet. Valuer has been out today . Awaiting to hear back
Ryan – Cheers ryan , It just seems like a silly policy . It sounds like if I was to live in it then there wouldnt be an issue. Not common sense at all. It wont be positve as I am using equity as a deposit. Purchase price is $380k with rent of $450 although I could do a small cosmetic touch up and push rent to $500
I like the fact its a 784sqm block and has options down the line for development. I also want to move there in the future so could also be PPOR
Hi guys. Thanks for all the replies. Valuation should be back today. Hopefully I am overreacting. Fingers crossed it goes through. I went through a broker. Apparently they have only "mentioned" it to him after they saw the property. Will post the update on here tofay
Thanks Jamie. Does it matter if its not an approved dual occ. apparently the building is old and there is no documentation around this ?
Hi guys. Yes the other loan is an IP loan so it should be all good. Thanks for your replies. Much appreciated
Hi Jamie
Its an IP
I have just received the loan docs and I am concerned as the loan doc says it replaces the old loan ( I have 2 splits one and the one I am topping up is $54k and topping it up to $78k)
The wording in the doc mentions "paying out the $54k " of the existing loan and making a new loan of $78k. I would then just get a bank cheque to pay the extra funds to the real estate for the 5% deposit. I remember reading a while ago that there can be issues with this and if its done wrong it can make the funds non tax deductible?
Cheers
Hi gguys. Thanks for the replies. The program is Steve mc knights that he sells on this website. Paid around $200 for it and now have nothing to auto analyse deals. Any suggestions of other program's that are helpful? Thanks
Hi Richard…Thanks again (for prob the 4th time so far tonight haha) ..I guess I can cross that overseas property off the list in UK for the time being
Great thanks again RIchard…. I believe that is what he is doing as we are going to go through a different lender for the loan while using the equity sub loan as the deposit…Hopefully my next couple of purchases can produce some good cash flow as I believe the low interest rates wont be around forever….
