I have a home worth approx 530K and looking to buy one at 730K. I am on 38K P.A and banks would not lend me to buy this other property. Eventually I will dispose of property of 530K and live in 740K…apart from bridging loan is there any other options? I think in this slow property market, it may take me 9-12 months to dispose the property. I don’t owe a cent on the 530K property. What are the best option available? I live in NSW. Help! Thanks! [confused2]
You need to get yourself a broker quicksmart.
You should be able to borrow no problem if you have over $500k in equity.
Byronent
Adelaide SAIt is very easy to get the money in you situation. The hard thing is will you be able to pay for it???
With your $38,000 p.a. and a conservative expected rental income from the investment property (not to mention you will not be paying tax with that much borrowings – I am assuming it will be negative geared), if you service, there is no issue.
Give one of the brokers on here a call or send them an email. This should be a very easy deal to arrange for most.
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdThanks all for the info. Any other suggestion?? By the way what are the going rates for bridging loan for 9 mths and 12mths or longer…just factoring in a longer period to sell the current house. I have one at 7.65..is that normal or is there lower deal, it is with one of the banks!!
Dec issue of MONEY mag has the best of the best including the best home loans and rates – worth a flick through at the newsagent.
You could try St George Bank. They have a “relocation loan” which is what you are looking for. We did a similar thing with them 12 months ago. The rates are competitive and it was fairly easy to set up. They were the only ones to do it at the time. You may have problems with serviceability as you will be paying $750K interest only for the period of the sale of your house. Hope this helps.
CarolI dont understand why it will take 9-12 months to dispose of the property!
There are cheaper loans out there than what you see in magazines (St George is not on the money here). I suggest talking to a broker.
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdYou could get a mortgage on the current property, using a no doc loan – no questions concerning income are asked. You could get $344,000 and use this as cash for the deposit for the second. You would then get another No Doc loan for the second one for 65% of the value, $475,000 = a total of $819,000 which should be enough to cover your expenses as well.
I assume you would rent out one property to help with servicing until you could sell the original one. Anyway, it would be a temporary situation, so is not a major drama, but these things tend to take longer than expected.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Thanks all for your suggestion, I am still pondering on the best type of loan I should take…obviously the cheaper the rates the better. Still factoring 9-12 months to sell due to current climate (maybe a bit too conservative) but better be prepared for the worst. Most of the banks says I should take the bridging loan….obviously…!
Another question, I want to know if bridging loan take a longer period to approve due to my circumstances or are they about the same if I bought the other property?? I cannot afford any stuff up as putting a 75K deposit is no joke in my circumstances. I just don’t understand why the banks don’t view my intention of disposing one of the property as a fact and refuse to give my a normal IP loan with a much lower interest charges. Also planning to increase the settlement date to above 42 days to 90 days…is this normal? Anyone done this before?
I know there is a product out there that is called a Go-Between Loan. It is sort of like bridging finance but at normal variable rates and you don’t have to make payments on either property for 6 months if you don’t want to. It gives you a bit of flexability without straining your finances too much.
Financial Wellbeing Coach
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They are probably recommending a bridging loan because you would not service the kind of loans Terry is advising. Doing this would force you to sell your home at under market value as the deadline draws near.
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The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Apart from normal loan is there any loan where you can borrow in US dollars or Japanese yen. Any one here knows of any foreign loan that one can take? Just interested to know if there is such thing!!
To Yack, we moved to Coffs in June 2004 after putting our PPOR in Sydneys west on the market in March, it only settled in Dec so 9 months to sell is NOT out of the question and although Poochi may be right on as far as timing, he/she has done extrordinarily well to have paid off their PPOR for $530 on an income of $38k
Well done Poochi, great result on that one.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!
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