Hi All,
New to the forum and keen to leverage into some +tve geared property in regional QLD.
Would be really grateful for some feedback from the brokers and experienced investors on the forum re my lending scenario as follows:
Security
· Contract price – $550,000
· LVR – 95%
· Costs – Stamp duty & LMI to be paid by me
· Loan to be stand alone, not cross-secured or guarantoredServiceability
· Rate – lowest interest only rate possible. Fixed or variable ok.
· I have been with my employer for 15 years and am currently on paid maternity leave at 1/2 my normal wage for 6 months. This means that my gross earnings are $1,750 per fortnight. I will return to work at the completion of mat leave. Evidence of current pay and maternity arrangements can be provided.
· I have minimal expenses as I have no loans other than my other investment property which is –tve geared by $4,500pa. I have no shared loans with my husband. My husband pays the rent and owns our car.
· I have a property in mind that would provide a net positive income of approx $23K pa.I have been told by one broker that this is only possible when either a) I go back to work or b) the LVR is < 80%.
Is there anyone likely to finance this deal?
Many thanks in advance
Jen
Need a bit more details to give you a define answ
1. Postcode of property?> since you mentioned it’s regional , then 95% LVR is most likely NOT possible- but can confirm once you give postcode.
2. Any another income? Husband? on $1,700 fortnightly you won’t have much left to service a loan — living expense for 2 adults + 1 kid? , the current IP etc…An educated guess would say, the broker you spoken to is correct. You def can’t service a loan ( you might be able to service a much smaller loan) without an increase in income, LVR will be based on location and security type.
Also from a investors point of view, this purchase is not really +ve ! purchase for $500k to get 23k PA back is around 5% Gross Yield or less???? and given it’s REGIONAL QLD it should be more like 12-15%…..
Unless im missing something…Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks Michael,
Postcodes – 4717, 4474 and alike – probably no surpises there.
Incomes – husband's income covers rent and is otherwised fully allocated to -tve geared property. I want to have a +tve geared portfolio of my own. The existing IP only costs me $4.5k pa. I have 1 infant child. My Income is only $1,700per fortnight until I return to work in Jan when it will return to $93K gross excluding super.Sorry to say, yes, you're missing something. $23k is the positive net income that the property will produce once all expenses have been accounted for.
Many Thanks Again
Jen
Jenzze wrote:Postcodes – 4717, 4474 and alike – probably no surpises there.The google meter just went off the scale for postcodes 4717 etc
Not a broker so I cannot contribute anything meaningful. Just my poort attempt at Saturday morning humour.
I'm 4717, just tried http://www.statecustodians.com.au they had max LVR 95% with LMI… I'm sure I could hear them laughing when they checked their area codes. I tried http://www.ratebusters.com.au max LVR 90% they said 4717 was out of their jurisdiction but they are processing it now, They won GOLD in the 'Australia's BEST home loans' in the 'Your Mortgage' magazine edition no 104.
JaSin66 wrote:I'm 4717, just tried http://www.statecustodians.com.au they had max LVR 95% with LMI… I'm sure I could hear them laughing when they checked their area codes. I tried http://www.ratebusters.com.au max LVR 90% they said 4717 was out of their jurisdiction but they are processing it now, They won GOLD in the 'Australia's BEST home loans' in the 'Your Mortgage' magazine edition no 104.A quick scan of the mag shows these LVR 95% with LMI Companies ; NAB, MyRate, IMB, SCU, ME Bank, HomeStar, Mecu, Not sure if that's of any help as a starting point.
JaSin66 wrote:I tried http://www.ratebusters.com.au max LVR 90% they said 4717 was out of their jurisdiction but they are processing it now,.This is not good, it means they will reject your 90% LVR but still have a “credit” check done so it’s harder for you to move and shop around.
—-
Firstly postcode 4717 is def under 80% LVR, you will not find ANY LEADER that will do this at a stand alone 90-95% LVR, i say stand alone because you can x-cross — but it still means your LVR in affect is still under 80% for the deal.
YOu can check postcode restriction here – http://www.genworth.com.au/ , theres really only 2 LMI provider in aus – genworth and qbe and they both pretty much have the same or similar postcode list ( note ANZ , St George and another banks do have their own internal LMI- but postcode restriction would still apply to 4717)
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Jen sorry to be the bearer of bad news-
1. You need more income to service the loan
2. LVR needs to be under 80%Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi All,
Just wanted to thank you for taking the time to answer my questions even if it does mean I have to alter my get rick quick scheme.
Cheers.
Shape wrote:JaSin66 wrote:I tried http://www.ratebusters.com.au max LVR 90% they said 4717 was out of their jurisdiction but they are processing it now,.This is not good, it means they will reject your 90% LVR but still have a "credit" check done so it's harder for you to move and shop around. —- Firstly postcode 4717 is def under 80% LVR, you will not find ANY LEADER that will do this at a stand alone 90-95% LVR, i say stand alone because you can x-cross — but it still means your LVR in affect is still under 80% for the deal. http://www.genworth.com.au/ YOu can check postcode restriction here – http://www.genworth.com.au/ , theres really only 2 LMI provider in aus – genworth and qbe and they both pretty much have the same or similar postcode list ( note ANZ , St George and another banks do have their own internal LMI- but postcode restriction would still apply to 4717) Regards Michael
UPDATE…ratebusters excepted loan even thou it's out of their post code requirements, I wasn't personally chasing a 90% LVR just very good rates. Still waiting for a reply from Aussie on their best deal.
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