Greetings All
I am having trouble finding loans for country properties is this a normal thing or just here in South Australia? The ones willing to loan will charge an extra 2.5-3% interest. We cant do Wraps either. How are we meant to positive gear/ make money? The values here have sky rocketed even in the last 6 months after every one thought they would slow.
Frustrated Newbie…PMSL [
]Regards Bear
Bear,
I too am looking at rural areas but assumed with a 20% deposit or equity in another property then location wouldn’t be too much of a problem. I will have to look into it.
If you have equity in another property you should be able to split the loan and add the new property to it at the same rate you are currently on.
Which Bank!!! ha ha[]
T.Hi folks,
This one can be really tough and the lenders keep changing their minds so I’d always recommend getting a broker to make sure you get the best deal. With genuine savings (eg money in the bank or shares you sell or equity in property you’ve had for more than 6 mths) you should be able to get loans up to 95% with lenders familiar with the area ie lenders with branches in those small towns. With non-genuine savings up to 90% is possible, tough but possible, 80% is achievable -and frankly I wouldn’t accept paying an extra 0.2% in interest, let alone 2%!! Keep shopping!
[
]
Mel
[email protected]I could assist in the hard areas and loans
If you want send some post codes of the troubled areas and I’ll see how they come up.
Is the lenders offerring you the loans a non-conforming lender eg. Liberty, Pepper, Ge etc..?
Thank you all for your replies.
well as it is i have to pay more for interest due to my income circs.
post codes are 5600, 5609, 5608, 5540.
Would prefer to borrow on the properties but as it is i have to borrow on my home.
Regards Bear
Why can’t you borrow on the properties? If it is postcode then you need a lender who isn’t fussed. There are major banks who will do any postcode.
Ideal situation is to draw 20% deposits from your home and borrow 80% against the IPs.
I am sure Mel or Picja can help out if you contact them!
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Bear,
Any lenders who use GE as an insurer should be able to lend to these postcodes up to 80% at least. I do note they are fairly small towns so as Simon recommends I’d stick to the big lenders to kick off – pick big banks which have branches in these towns.
Sub-prime lenders may be an option but it costs, I’d try all the big guys first.
Good luck!
[
]
Mel
[email protected]Thank u for your reply Simon
I agree that is the ideal situation. I own my own house outright but coz i have been self employed for so long and currntly on a carers pension its not that easy to obtain. Mind u i have never had a late payment on any loan but that dont seem to come into it.
Regards Bear
Why can’t you borrow on the properties? If it is postcode then you need a lender who isn’t fussed. There are major banks who will do any postcode.Ideal situation is to draw 20% deposits from your home and borrow 80% against the IPs.
I am sure Mel or Picja can help out if you contact them!
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thank you for your reply Melanie I hanvt even looked at the banksacutally due to the costs involved and well i am only on a careers pension so i dont think they will touch me.
Hi Bear,Any lenders who use GE as an insurer should be able to lend to these postcodes up to 80% at least. I do note they are fairly small towns so as Simon recommends I’d stick to the big lenders to kick off – pick big banks which have branches in these towns.
Sub-prime lenders may be an option but it costs, I’d try all the big guys first.
Good luck!
[
]
Mel
[email protected]This laon should be no problem with equity in your own property for deposit.
The post codes are fine by GE LMI, so can borrow up to 90-95%LVR
Even with a non-conforming lender they are fine – 90%LVR
Sounds easy to me.
I don’t see the problem.
How soon do you want the property to settle?Thanks for your input picja
The Auctions for the properties im looking at are on 14 oct. If other properties come up in the meantime i wana be ready to purchase asap
Regards Bear
This laon should be no problem with equity in your own property for deposit.The post codes are fine by GE LMI, so can borrow up to 90-95%LVR
Even with a non-conforming lender they are fine – 90%LVR
Sounds easy to me.
I don’t see the problem.
How soon do you want the property to settle?Hi Bear & all,
I’ve just stumbled on this site. Looks like a great community and a wealth of knowledge.
Thought I’d provide some details of my experience in the region mentioned.
I own two properties in the Whyalla Norrie 5608 postcode, both ex housing trust semis, which I have purchased in the last 12 months. I’m extremely pleased with the performance of both properties – very cash flow positive, and I’ve been suprised by some capital gains too as the property boom slowly creeps west of Adelaide. The ‘most affordable town in each state’ feature on ACA a few weeks ago will probably help things along as well.
Financing was a fairly painless process. I did, however, have to do some legwork to find a lender that would provide a small home loan. Most banks seem to have limits around the $30-50K marks. Not much good to me when the purchase price & valuation is low 30s and you want to borrow 80%. Adelaide Bank would lend from $10K for a home loan and up to 80% LVR because of the country location, although 80% seems to be the norm for investment properties anyway.
Location details – A few thoughts on the location… I spent most of my childhood there, so had a homeground advantage when purchasing my properties. If you’re not familiar with the town, there are some very desirable spots and some plain dodgy spots. As a general rule, the closer to the beach, the better, with the exception of the few newer estates in the western area that are good but relatively expensive. I’d suggest limiting purchases in the area outside of the McDouall Stuart Ave, Cartledge Ave and Jenkins Ave triangle as there is an abundance of vacant properties and ‘undesirable’ tenants here. (apologies to anyone who lives in the area [
])Property quality – Viscount Slim Ave. area is very sandy. May have to look out for structural problems in this part of town. Housing trust has bulldozed lots of vacant houses in this area.
Risks – Buying in a bad area will mean serious problems finding good tenants. There is an oversupply of low-end housing and it’s getting worse. The Housing Trust has somewhere around 400 vacant houses (at a guess). They’re selling around 15-20 houses per month and these are mostly purchased by investors, so there’s some stiff competition. There is also limited industry. If OneSteel was to close down, there wouldn’t be much left – although the welfare industry would probably boom. 5540 has the same risk with Pasminco.
I’m not bidding at the Oct14 auction but my choices if I were would be the Oldridge, Jones or Jenkins properties – this is only based on location and the description in the property listing though. I haven’t viewed them and probably wont have a chance before the auction.
Hope my thoughts have been useful. Remember that they are just my thoughts and feelings based on my experience in the area. Be sure to do your own research, and good luck with your purchase.
Cheers. [8D]
Mike
[email protected]Wow Mike thanks for your input. Im sure it helped even more then u may think[
].Im sure now there will be more compition for these houses now and thats ok, will keep me on my toes .LOL[
]Thanks again Mike.
Regards Bear
PS would u mind if i contacted your personally for a bit more advice about the region?
Thanks for your input picjaThe Auctions for the properties im looking at are on 14 oct. If other properties come up in the meantime i wana be ready to purchase asap
Regards Bear
This laon should be no problem with equity in your own property for deposit.The post codes are fine by GE LMI, so can borrow up to 90-95%LVR
Even with a non-conforming lender they are fine – 90%LVR
Sounds easy to me.
I don’t see the problem.
How soon do you want the property to settle?Sure, email me at [email protected] . Glad to be of help.
Cheers,
Mike.
Wow Mike thanks for your input. Im sure it helped even more then u may think[].Im sure now there will be more compition for these houses now and thats ok, will keep me on my toes .LOL[
]Thanks again Mike.
Regards Bear
PS would u mind if i contacted your personally for a bit more advice about the region?
]
]
])The topic ‘Country Porperties’ is closed to new replies.
