Hi guys im meeting swith a mortage broker. im a virgin at it so i have a few questions just about loans, IO, bla bla..but i would appreciate some help on WHAT I SHOULD ASK??
but are there some things i should look out for
im 18, buying > 10KM from city unit/flat. buying it with the missus,.
so yeah? anything would help!
anyone?
Hi Wealthyyjvd,
Rather than what you should ask, make sure you think about first what you are looking for. A good broker is going to want to know what your goals are, what you are looking to achieve, what your investing strategy is, etc. They'll also need to know your current financial status so they know your starting point.
They need to know this so that they can best advise you regarding the type of loan you need, the best structure that you should purchse through, what is going to be the best fit for you.
So to flip it, you could ask them, based on your goals, strategies, outcomes you are looking to achieve, what they could suggest and recommend (from a loan perspective). For example, if you are buying to hold short term (even 3-5 years) and then sell, the product/loan they recommend may be different to what they'd suggest for a 10+ year hold. For a short term hold, there would be higher exit fees on some loans/products for example.
Ask them to explain the difference between IO and P&I and how it would affect your own scenario – both pros and cons. Brokers earn their money from a trail fee from the banks. The majority do the right thing and put you into the best loan for you, not the one best for their payment, but worth asking the question around that too.
Your broker can best advise you when they know more about you.
I hope this helps.
WendyWendy Chamberlain | Chamberlain Property Advocates
https://www.wendychamberlain.com.au
Email Me | Phone MeMelbourne Buyers Agent & Sellers Advocate | Independent | Flat Fee
thanks heaps, anything i should look out for
i have made up a list of like 10-15 questions, should i stop or just keep going.
anything specific i should talk about?
anything else would be appreciated!!
Why not post what they recommend and we can comment on it for you.
Richard Taylor | Australia's leading private lender
thanks guys,
yes indeed i will. ive got a huge list ready at the moment.
just a bit of background:
im 18 & buying an investment property with my g/r (also 18)
we have 11-12,000 saved at the moment, but plan to have 22-23,000 saved by the end of may.
just in time for the grant.
we earn combined income of 40-45,000 NET
both go to uni.
and are looking for something around the 220-250k mark, if we can get this.
we will get the grant and i plan to live in it for 6 months. so thats another 7k (as ive taken away 10k – for s/d)Hey again,
as i posted earlier, i said i would be meeting with a mortgage broker Monday night, well we are heading into Tuesday and i just want to inform you guys of what i was told
1. me and my partner would need a letter from our current work stating that we have secure jobs, (as they are part-time, and many lenders look at part-time for over a 2 year period, so i do not qualify as ive been there 1 year, just) – and i would need this letter stating that it is a "permanent position" with "extra hours that are generally available."
2. we may be able to get stamp duty waived/ or a small portion of it waived as we only earn 25k gross (each) and are students
3. our credit card limit (which currently stand at 9k, combined) should be reduced to around 1-2k, however we are quite disciplined.
4. a P+I loan will be better, as we are applying for the FHOG, a IO loan will be for investors, and the lender would rather us pay money into the loan to reduce the balance
5. the FHOG counts toward the deposit
basically, it was our jobs that was the only factor, saying that they are "part-time" will have an impact however stating they are "permanent position doing 26 hours p/w" we may be able to persuade the lenders it is full-time with reduced hours
anyone?w what do you guys think? pers. info is above this post.
cheers
Hi im sure if im in the right spot to post this but ineed help to work out what step i should take next.
My girl and have a block of land worth $110000 on the east coast (which we own out right)and we have $20000 in savings to start investing.
i earn $120000 a year before tax and am paying no rent.
What should i do in terms of my move?
Sell the block?
Build multiple dwellings?
or use it as colateral?
Please help; -)
Daniel.Hi Daniel
I wont comment about whether you should sell the block or develop it as without alot more information it is difficult to comment on that however one thing i would say is with the block being an asset certainly look to gear against it and use the funds for a deposit to purchase other IP's.
Probably a line of credit would be the most flexible type of product whereby interest is only charged on the funds drawn down.
Just make sure the block of land and the new IP's are not done with cross collateralised loans otherwise you may have issues if you do decide to sell it.
Back to the block of land unless it is going up in value just sitting there you maybe better off to construct a dwelling upon it to at least generate an income flow.
Other consideration would be the First Home Owners Grant but that is for a separate post.
Richard Taylor | Australia's leading private lender
what is this, a thread HIJACK?
qlds007 what do you think of my situation?
wealthyjvd wrote:Hey again,as i posted earlier, i said i would be meeting with a mortgage broker Monday night, well we are heading into Tuesday and i just want to inform you guys of what i was told
1. me and my partner would need a letter from our current work stating that we have secure jobs, (as they are part-time, and many lenders look at part-time for over a 2 year period, so i do not qualify as ive been there 1 year, just) – and i would need this letter stating that it is a "permanent position" with "extra hours that are generally available."
2. we may be able to get stamp duty waived/ or a small portion of it waived as we only earn 25k gross (each) and are students
3. our credit card limit (which currently stand at 9k, combined) should be reduced to around 1-2k, however we are quite disciplined.
4. a P+I loan will be better, as we are applying for the FHOG, a IO loan will be for investors, and the lender would rather us pay money into the loan to reduce the balance
5. the FHOG counts toward the deposit
basically, it was our jobs that was the only factor, saying that they are "part-time" will have an impact however stating they are "permanent position doing 26 hours p/w" we may be able to persuade the lenders it is full-time with reduced hours
anyone?w what do you guys think? pers. info is above this post.
cheers
My answers:
1. Strange. A payslip or 2 should do. Maybe you are casual?
2. Strange again. There is no stamp duty if you are buying your first home and are eligible for the FHOG and the value of the property is under a certain amount.
3. Reduced credit card limit will mean more borrowing power.
4. I disagree. IO would be better for many reasons.
a) minimal repayments,
b) better for tax reasons
c) can still pay extra as if PI and then revert to minimum payment if need be
d) using a 100% offset will save you the same interestThe only potential downside is you will accumulate more money in your offset and maybe tempted to spend it. Most banks allow IO loans on owner occupied properties.
5. yep
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
2. Strange again. There is no stamp duty if you are buying your first home and are eligible for the FHOG and the value of the property is under a certain amount.
hmm, i just called the SRO and thye said there is still s/d?
What state are you in?
VIC
i am a student-full time
working – permanent part-timewealthyjvd
Stamp Duty has nothing to do with whether you are working or not or age or anything like that and is purely charged on the Transfer value of the property.
If it is your first home then there are concessional benefits available to you.
I think the person at the OSR you spoke to got the wrong end of the stick.
Just on the balance of your thread.
Yes i agree with Terry where possible an Interest Only loan is the way to go whether it is a prime residence or your 5th investment property. WHY – because circumstances change and the loan needs to be flexibale and change with you.
Can you use the FHOG as deposit. Yes / No depending on the lender.
2 lenders came out with a policy change yesterday saying they would not allow the FHOG to be the sole source of deposit.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:wealthyjvdStamp Duty has nothing to do with whether you are working or not or age or anything like that and is purely charged on the Transfer value of the property.
If it is your first home then there are concessional benefits available to you.
I think the person at the OSR you spoke to got the wrong end of the stick.
hey QLD007/
i spoke to someone at the VICTORIAN STATE REVENUE OFFICE.. where can i find out what concessions are available,i dont own a concession card, such as health care card or anything of the such, i am just a student. my partner and i both,
where is this info avaialable?
sorry OSR is basiccalt the SRO in vic…
QLDS007, i just read on the SRO website that you can either receive the BONUS ($3000) or the concession, not both, but i dont think they were talkking about the S/D concession..
cheers.
If your in VIC I think you may need to have a child before you get the stamp duty exemption.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
In Vic i think you will find that because you get the $3000 boost you dont get an exemption on your stamp duty.
Richard Taylor | Australia's leading private lender
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