Hi,
My nephew has a new business (operating for 18 months) that is doing extremly well and any spare money is put back into his business. Currently he rents a property close to his business but can’t sleep with noise and cars hooning around at night.
He wants to purchase a property with a mate for $360,000 (to be close to his business this would be the price), do any of you finance guys know of anyone that would lend 100% + costs?
Thank you
Jenny1
Hi there,
Im not a ‘finance guy’ but:
Who does your nephew bank with?
Has he tried to find finance himself?
Im sure there is someone out there.,…..[whistle]Jenny
Hate to say if your nephew has only been self employed for 18 months he will struggle to obtain 100% finance.
Obviously he is purchasing with a mate (not recommended) and his mates income is sufficient to service the total loan then his self employment will not be a problem.
He would be better to put some of the cash he is making into a deposit and this together with the FHOG will help reduce his loan requirments. His only problem then is working on convincing LMI due to the high level lend.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Richard,
My nephew has his own business and employs 10 staff the fellow that wants to go in with the purchase of the house works for my nephew.
The business has turned over nearly $1.5 mil this financial year, surely someone would lend him funds. [glum]
Thank you
Jenny1
Hi Jenny,
Business turnover does not mean much. I could be turning over 10 Million but if my costs are 11Million the lenders will be scared off.
A 100% + may be possible but the rate would probably be high.
I think it’s worth asking if this company has a product that suits http://www.onyxfinance.com.au/
Todd Burns
http://www.freepropertyhelp.com.auHi Jenny
With the finance people here saying that your nephew may be lumbered with a pretty high interest rate for a 100% loan, it might be an idea for him to consider buying his new home via a vendor (seller) financier, i.e. somebody who will sell him the home and provide the loan, all in one package.
Tell him to have a look in the “Real Estate” Classified section of his local newspaper. The ads to look for usually start with something like “No Bank Qualifying, Seller Financing, Rent To Own”, etc.
If he doesn’t find any of that type of ad in his local paper, feel free to send me an email or PM and we’ll see if we can find a Vendor Financier in his area.
Good luck.
Cheers, Paul
Paul & Karen Dobson
negative2positive
Turn your negatively geared property into a positive cashflow investment.
Phone: (02) 4984 9540Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Jenny
Regretfully if he turned over $100M it would not matter if he had only been in business for 18months.
A conventional lender will not be able to get mortgage insurance with less than 2 years S/E. Comes of having the market dominanted by 2 main insurers and 3/4 others.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thank you everyone that has sent through their thoughts and info.
Stuart/Perry
I thank you both for your input and I forwarded your advise/info to my nephew, and sometimes no doesn’t mean a no and can sometimes turn to yes [biggrin]Might even help him out with a deposit if it gets too sticky.
Cheers
Jenny1
hi Jenny1
if its too noisy 4 nephew to sleep, why not rent something else, in a quieter street?
why go thru this grief when the clear preference is to re-invest in his business (which in fact may well out perform a resi property purchase!)
the resi properties will still be there – lots and lots of ’em, infact, there are suburbs full of ’em!
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneJenny your nephew could get his parents or your self to guarantor the deposit. There are lenders out there now that will allow a family memeber to use a portion of their home as the deposit. You are only liable for the amount you want to guarantor. Eg if the house he buys is $300k. You may consider to “pledge” 10% or 20% of the purchase price 30 or $60k. If he defaults then you would be liable for the deposit only and not the full $300k By using a 20% pledge then mortgage insurance would not apply and a main stream bank would look at it if his profits could service the loan. I hope this helps.
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