Hello,
I relocated to Oz from the UK and have found it very hard to raise finance. I’m self employed as a property developer (something I did succesfully in the UK) and have only had my ABN for 9 months. I have also to show a profit as yet as I am buying renovatable properties and holding them – basically so that I can build on the gardens (my speciality).
What I am finding rather frustrating is that every time I approach a bank or broker, I am getting turned down. In the UK I could lend 70% of the purchase and 70% of the reno costs with the hosue as security, on a one year loan with compunding interest. Here I am having trouble raising anything.
For example, I have two houses with adjoining gardens which coyuld accomodate three units. There is a $120k to $150k profit to be made but I cannot convince any lender to front up the money. They point to servicability and risk. I then say that I have enough cash to service the loan for a minimum of five years and God help me if I can’t find a way out of the deal with profits by then (reduce the sale price, rent, sell my body!).
Their only suggestion to date is to find someone to act as a securor but, as a new immigrant, I don’t exactly have a big list of mates ready to offer up their assets as security!
All in all, I’m finding it very frustrating. Does anybody out there know of any lender who is a bit more open minded and flexible to those of us who are (a) new to the country; (b) who do not have a long history of BASs but (c) who do have decent cash reserves/assets?
Any ideas would be very welcome as I can see some great money making opportunities but I am getting very frustrated.
Oh, and if anybody wants to act as a securor – PM me and we can discuss terms.
Andy
Most No Doc lenders will lend up to 70% LVR to people who have been self employed for a min of 1 day. eg. Macquarie, Rams etc
Terryw
Discover Home Loans
Parramatta
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Hi Andy
Firstly welcome aboard.
As a fellow pom I nkow exactly what you mean.I arrived in 1992 and thought even being in the financial industry obtaining a loan would be a walk in the park. Regretfully no.
In saying that the lending market has come a long way in the years I have been here and as Terry mentions it can be done.
No doc / lodoc Development funding is a specialist area so make sure you contact someone with knowledge of what you want and not what they want to offer you.
Good luck and feel free to get in touch.
PS. Which part of the UK, I am an old Bournemouth boy myself.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
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Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Firstly, thx for the replies.
I am aware of no doc/low doc loans for house purchases. The problem is that I don’t need to purchase a house right now but build three new units from scratch. I couldn’t find a ND/LD lender who was interested in that – mainly because no asset was available to act as security.
However, the good news is that when I revisted the bank, having found someone willing to securitise the loan against their assets, the same manager told me that I didn’t need to securitise it! I was a little taken aback to say the least as he’d only just told me that I did. When he went back and looked at his previous workings he had failed to take into account the potential rental income from the new units if they failed to sell. On the one hand, I was a tad pissed off having wasted 6 weeks finding someone to securitise the loan, but on the other hand, I can get on with it now and I don’t have to pay up for the security.
The moral of the tale here is to keep going. I could have given up but I didn’t and the end result is that there was a solution (even if it had been there all along – idiot bank manager!).
Regards
Andy
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