Hi,
new to this forum but help and opinions very much needed. our situation is – we own our acerage property in perth valued at approx $700,000. we also own a rental property in golden bay valued at approx $270,000 – we have no mortgage on either but golden bay property is part of our super fund. I have fallen in love with the south west area (around margaret river area) and plan to move there in 5 years when all our children are thru high school.we seem to be asset rich but cash poor – no savings at the mo as have just paid off properties. I would dearly love to buy a small farm down south but it would cost us at least $600,000 plus costs. we have no deposit as yet but have good income of $120,000 per year. Would really appreciate opinions on our situation and my desperate desire to get a small farm before the prices really become out of reach. Is it possible !!!!! Help !!!!!
VyvIt is very simple if you can service the debt or, if you are self employed, it is even easier.
You could borrow 80% against the new property if it is suitable security and you could borrow the rest against one of your existing properties (ie: 20% plus closing costs). You would not need a cent as you have heaps of equity. You could eve borrow more for other things like renovations, etc if you can afford the repayments.
Speak with a good mortgage adviser and you will be fine.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi, thanks for the advice mortgage adviser. yes we are self employed with a self managed super fund, how would being self employed help us to buy another property? I must admit I’m a bit worried about the huge repayments we will have to make. Thanks again for the advice, I really appreciate it.
vyvyen
Being self-employed enables you to apply for various low doc loans. Low Doc just means income does not need to be proven. As long as you can service the debt, you can borrow what you can afford.
Note:
The ATO checks people who overstate their income. Talk to your adviser if you decide to go low doc.Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
A word of caution – the range of lenders willing to assess you on a “lo-doc” basis will vary widely depending upon the size, location and zoning of the property you propose to purchase – also whether the “farm” will be income producing or not.
Different lenders each have different guidelines, and the amounts they will lend relative to the value of the security properties, together with the interest rate they will charge you, will vary widely.
The Golden Bay property should present no problems, as it sounds like a standard residential investment property, and as such should be an acceptable security to a lender. The acreage you own, and the property you propose to buy, however, will neccessitate some research on the part of a licensed & reputable broker.
Adrian Feltham
Principal
Mortgage Mentors AustraliaAdrian,
This applies to all loans. In any case, if the acreage is less than 50, it should not pose a problem and vyvyen said it was in Perth so it does not sound remote.
Also, being a “licensed” broker has nothing to do with reputation. Licensing is a WA thing and means nothing in the rest of Australia. I have more qualifications, as do most of the brokers on this site, than is required in WA but we cannot be licensed because we don’t live there. If living in WA makes a broker reputable, I will retire today.
In case you haven’t gathered by some of my posts, I am at the forefront of getting the MIAA, the FBAA and the AIMB to push the FBSB to have the residency requirement removed from the legislation so we can operate freely in WA just as WA licensed brokers can operate freely in all other States.
Nothing personal – the WA legislation just fires me up because it is preventing a large marketing move I wanted to make in WA.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
If your Golden Bay property is an asset of your Super fund, you will not be able to use it as security for a loan unless you want the wrath of the Australian Taxation Office to fall on you.
Hi,
Thanks for all the valued help. yes the golden bay property is part of our super fund so cannot use it, but our ppor is mortgage free and valued around $700,000. Will now explore lo-doc loans. thanks again.
vyvyen
There is a little bit of information available at:
http://www.mortgagepackaging.com.au/index_files/product_types.htm
Don’t forget to check out “No Doc” loans as well. These are also commonly known as “Asset Lends”.
The main difference with these types of loans are the different documentation requirements. The products are predominantly the same.
Happy hunting.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi, thanks Robert, will do. Vyvyen
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