http://www.somersoft.com/forums Lenders, loan products, valuation, mortgages, and borrowing strategies for acquiring that next investment property. en Wed, 08 Sep 2010 08:12:35 GMT vBulletin 60 http://www.somersoft.com/forums/images/misc/rss.jpg http://www.somersoft.com/forums http://www.somersoft.com/forums/showthread.php?t=65134&goto=newpost Wed, 08 Sep 2010 05:39:07 GMT Hi, I am really eager to buy my first IP within 12 months for about $300,000-$350,000 (a unit as I already have a house) but I only have about $25,000 saved up in cash. I should have some equity in my PPOR (bought it in 2008. My main concern is, where should get the rest of 10-15K... from my... Hi,

I am really eager to buy my first IP within 12 months for about $300,000-$350,000 (a unit as I already have a house) but I only have about $25,000 saved up in cash. I should have some equity in my PPOR (bought it in 2008.

My main concern is, where should get the rest of 10-15K... from my equity in PPOR or ask a friend who has some big savings. Or should i wait until I just save up 35 K in cash?

Please help ]]> Property Finance Invest http://www.somersoft.com/forums/showthread.php?t=65134 http://www.somersoft.com/forums/showthread.php?t=65100&goto=newpost Tue, 07 Sep 2010 04:50:04 GMT RBA keeps interest rates on hold,
http://www.news.com.au/business/brea...-1225915342827

......but this news is probably a little overshadowed by pending news on an election result. From Katter's appearance on Q&A last night I would have bet he was supporting Labor. He really is a surprise :confused: ]]> Property Finance Propertunity http://www.somersoft.com/forums/showthread.php?t=65100 http://www.somersoft.com/forums/showthread.php?t=65094&goto=newpost Tue, 07 Sep 2010 00:46:39 GMT Has anyone haggled with BOQ recently? Spoke with a manager/owner on the weekend and meeting again in a week to explore their CIP appetite. Has anyone haggled with BOQ recently? Spoke with a manager/owner on the weekend and meeting again in a week to explore their CIP appetite. ]]> Property Finance WinstonWolfe http://www.somersoft.com/forums/showthread.php?t=65094 http://www.somersoft.com/forums/showthread.php?t=65087&goto=newpost Mon, 06 Sep 2010 21:36:00 GMT Hi All This is for all the excel users. I need help setting up a formula with the below criteria 1. Loan $135K 2. Interest 17% if paid by 1st month 3. Penalty interest 3% if not paid by the 1st month (effectively 20%) 4. Term 10 years Hi All

This is for all the excel users.

I need help setting up a formula with the below criteria

1. Loan $135K
2. Interest 17% if paid by 1st month
3. Penalty interest 3% if not paid by the 1st month (effectively 20%)
4. Term 10 years

I did not realise this would be such a challenging calculation. I have had 3 people including an accountant do this for me and come up with vastly different answers eg penalty interest ranges from $7.50 to $1500 per month.

Any ideas on a function would be most appreciated.

Cheers
Donna :confused: ]]> Property Finance Donna http://www.somersoft.com/forums/showthread.php?t=65087 http://www.somersoft.com/forums/showthread.php?t=65083&goto=newpost Mon, 06 Sep 2010 12:58:17 GMT Hi everyone & thanks in advance for your help - I am a first time poster but have been keeping an eye on this forum for a while now and hopefully I can gain some advice!

I am looking at purchasing my first home, to rent out for a period of time and move into in a few years (am currently living at home still). My main problem is in finding a home loan. I am a casual worker (recently changed employers in a new industry) whilst in my final year of a masters degree - my current employer is related to my degree, however is different to previous employment and I currently earn $700 a week after tax and this is very likely to continue for at least 6months (until I graduate and can get a fulltime job I am qualified for!).

I am looking to purchase a property between $375-$390K and have a $25K deposit (not including FHOG) however I highly doubt a bank would lend me that amount of money. My parents are willing and happy to help out and a number of suggestions/theories have been made such as acting as security/servicing guarantors however with this size loan I am not convinced it is enough.

One other option would be if my parents and myself buy a percentage of the property each and once I am in a more bank friendly finance situation buying my parents share back from them (i.e. when I decide to move in so the property is no longer an IP but a PPOR). By my calculations and research I would be comfortable servicing a loan of $280,000 (70/30% split) between the interest rates of 6.5-9%.

Does anyone have any suggestions on other ways to go about this? I don’t want to rip my parents off and want to find a solution that minimizes risk as much as possible for both parties.

How do we go about splitting a loan?
When do we have to decide how the loan/finances will be split, at contract signing or settlement?
How would we then split the investment portions?
How easy is it to buy out the second percentage of the loan?
What impact does this have on capital gains tax and other taxes?
What exit strategies would be appropriate?
Any other questions that I have missed!

Sorry about the long-winded email – this is all starting to do my head in! ]]> Property Finance Polo Girl http://www.somersoft.com/forums/showthread.php?t=65083 http://www.somersoft.com/forums/showthread.php?t=65078&goto=newpost Mon, 06 Sep 2010 09:10:58 GMT Witch bank advised me today they want us to pay a break fee of $ 15,000 to let me out of a $586,000 5yr loan fixed at 7.15% until May 2012. I asked, how do you work that out? The answer was that the current fixed rate for a similar loan is 8.1% and that is what they work off. I said, but... Witch bank advised me today they want us to pay a break fee of $ 15,000 to let me out of a $586,000 5yr loan fixed at 7.15% until May 2012.

I asked, how do you work that out?

The answer was that the current fixed rate for a similar loan is 8.1% and that is what they work off.

I said, but aren't you getting out of a cheap loan so you can lend the same money at a higher rate - Shouldn't you be paying me $ 15,000?

The answer was, the computer says 'no'.

Can anybody offer me enlightenment here?

Belbo ]]> Property Finance Belbo http://www.somersoft.com/forums/showthread.php?t=65078 http://www.somersoft.com/forums/showthread.php?t=65051&goto=newpost Sun, 05 Sep 2010 07:13:59 GMT I am a first home buyer. How do I determine whether I should go for a fixed or variable rate? What are the things to remember? Also, is it a common practice to negotiate a rate (either fixed or variable) with the bank? If yes, can I still negotiate a rate after I have been pre-approved? I am a first home buyer. How do I determine whether I should go for a fixed or variable rate? What are the things to remember?

Also, is it a common practice to negotiate a rate (either fixed or variable) with the bank? If yes, can I still negotiate a rate after I have been pre-approved? ]]> Property Finance aitsmoi http://www.somersoft.com/forums/showthread.php?t=65051 http://www.somersoft.com/forums/showthread.php?t=65048&goto=newpost Sun, 05 Sep 2010 02:28:31 GMT Howdy people,
I'm keen to start looking into buying my second property.
I owe $195k on a House worth about $280-$300k
It's rented out at $250pw
I pay $60pw board and I have $20k savings.
Currently on $43k a year with a new job that I started 4 weeks ago.
Can see my main problems being, I've only just started new job and i've also only got a 4yr full time contract.
I'd really like to buy a unit in Frankston or Seaford so would need to borrow between $200-$250k.
I'd like to live in the unit or if i can't afford to will rent out and continue boarding where I am.
Anyhoo, just not sure what is the best way to go about things.
What would you do in my position?
I'm not looking to own heaps of places but would like to own about 3 in the next 5-10yrs and be able to afford to live in my P.P.O.R ]]> Property Finance Bayside http://www.somersoft.com/forums/showthread.php?t=65048 http://www.somersoft.com/forums/showthread.php?t=65025&goto=newpost Fri, 03 Sep 2010 13:40:42 GMT I think this is great site and I thought I should therefore share my recent and ongoing experience of ANZ's IP product.

I'll open by saying it has been appalling, whether it be getting documents to me in good time before settlement, failing to set up the offset facility and then claiming all was alright when I noted it wasn't and dealing with my subsequent reasonable complaint as if I was a moron and not a customer who had borrowed $800k.

I've mortgaged/remortaged at least 10 times in my life both in Sydney and the UK and simply getting this ANZ Breakfree mortgage started and running as its should has been the worst experience I've ever had by any Bank and I've delat with many.

One of my biggest issues is that ANZ have outsourced their backoffice processing to Perpetual and Perpetual's attitude and ability to even understand the ANZ product has been appalling or offer anything approaching what you might call client service. I also hate how they've given stupid titles to their staff such as 'Mortgage Problem Resolution Officer' and 'Mortgage Fulfillment Officer' as they bear no resemblance to their ability to do anything like their titles.

My advice is steer well clear of ANZ until they sort themselves out! Moan over.... ]]> Property Finance Insight1234 http://www.somersoft.com/forums/showthread.php?t=65025 http://www.somersoft.com/forums/showthread.php?t=65020&goto=newpost Fri, 03 Sep 2010 10:21:10 GMT What if you had two different contracts on two different places and using two different lenders / brokers. If you did the applications at the same time and only declared current liabilities.... Would that work to essentially increase servicability if both approved without knowing about the other? ... What if you had two different contracts on two different places and using two different lenders / brokers. If you did the applications at the same time and only declared current liabilities.... Would that work to essentially increase servicability if both approved without knowing about the other?

I have never actually sat down and read all the fine print, do the banks have a clause in there which says you need to notify of change in circumstances since first applied?

PS.... Not trying to do anything illegal before anyone gets upset.... Just seeing if that would hypothetically be possible while all being above board. Thanks ]]> Property Finance Welcome http://www.somersoft.com/forums/showthread.php?t=65020 http://www.somersoft.com/forums/showthread.php?t=65017&goto=newpost Fri, 03 Sep 2010 09:17:40 GMT Hi guys, I am currently looking to purchase my first property (with my hubby). We are really keen on a small rural holding and have a few finance queries. Location: VIC Zoned: *_farming _* Size: 18acres Established Dwelling: Yes Value: Under $250,000 Mains Power: Yes Hi guys,

I am currently looking to purchase my first property (with my hubby). We are really keen on a small rural holding and have a few finance queries.

Location: VIC
Zoned: farming
Size: 18acres
Established Dwelling: Yes
Value: Under $250,000
Mains Power: Yes
Sealed road: Yes
Postcode where LMI is available: on application only (Genworth)
FHOG: Yes

The land was once part of a large rural holding that has been subdivided. It would not be used for farming purposes and we would derive our income from our current positions of employment.

Initially I approached the BOQ as I know a manager. They were happy to loan to us at a LVR of 95%... but Genworth would not provide LMI on the property through the BOQ as it was over 5acres. Therefore I was advised that an 80% LVR would be the max lend.

We are now applying through the CBA (who is our current bank). We have an immaculate credit history with the bank. No previous mortgages but significant personal loans in the past ($40k + and all paid out) and credit cards with nice limits that are turned over on a regular basis. Never missed a payment and paid out all loans early.

They have advised that it will be possible to get a loan on this particular property at 95% LVR. They have also claimed that Genworth restricts them to 25acreas (not 5 like BOQ) and will be possible provide LMI even though the prop. is zoned farming.

They next step is the CBA wants to do a valuation on the place. We are confident it will stand up an....d for what it is worth, we are pre-approved...

I have spoken to multiple lending advisers at the CBA and been given the same story (I am a cynical being).... I do have have a personal lending specialist at the CBA who I should add is giving amazing service

What I want to know is ....

- Will we have a hope of getting a 90 - 95% LVR on this property (from anyone!)

- Will Genworth do the LMI via the CBA?

- or am I wasting my time? and potentially money?????

The CBA wont go any further (do a valuation) until we have contract of sale ..... I am waiting on one from the vendors solicitors...

It is getting sent directly to my solicitor.... and at that point I will begin to incur costs....


Help would be greatly appreciated! Thanks in advance! ]]> Property Finance moveaway http://www.somersoft.com/forums/showthread.php?t=65017 http://www.somersoft.com/forums/showthread.php?t=65015&goto=newpost Fri, 03 Sep 2010 09:05:21 GMT We've got a mortgage over an IP which we are subdividing.

I understand that after subdivision and sale of the rear block, the bank will revalue the front house and land, and we will then be required to pay down the loan to 80%.

However, currently the loan is 90% LVR as we took out LMI. So, I guess my question is how does the LMI impact the post subdivision assessment? i.e. will we only have to pay down the loan to 90% of the newly assessed value?

Thanks for any feedback. ]]> Property Finance gooram http://www.somersoft.com/forums/showthread.php?t=65015 http://www.somersoft.com/forums/showthread.php?t=65012&goto=newpost Fri, 03 Sep 2010 08:14:50 GMT Hi guys, I’m in my mid 50’s and looking to downsize and improve living quality by building a new house in the northside of Brisbane. I’m in need of advices in terms of structuring my loan to get the best tax benefits. My current situation is as follow: I currently own 2 properties, one as a PPOR... Hi guys,

I’m in my mid 50’s and looking to downsize and improve living quality by building a new house in the northside of Brisbane. I’m in need of advices in terms of structuring my loan to get the best tax benefits. My current situation is as follow:

I currently own 2 properties, one as a PPOR and one IP, both fully paid and both are joint ownership with my wife. She had recently retired and I’m looking to do the same in 5-7 years. I am planning to get finance to build a new house, which will become our PPOR. Once the new house is built, I would like to rent out my current PPOR, and I'm reluctant to sell my current PPOR due to sentimental reasons.

The problem arises now that when we eventually move into the new house, we would have fully paid off the two investment properties, and with a new loan attached to my new house, which we can’t claim any tax benefits. Are there any advices on how to best structure the loan to get the best tax benefits for our situation?

I have got a valuation for both of our properties,
Current PPOR - $450,000
IP - $370,000
Planning to spend $450,000 on our new house

Also, since my wife had just recently retired, what’s the best way to ‘rearrange’ the ownership so that I can have more tax benefits once I turn my PPOR into an IP. My friend suggest to me that I can buy off my wife's share of the house, but would that incur stamp duties? Is the whole process worth the hassle or should I just bit the bullet and keep it as is?

Thanks,
CKW ]]> Property Finance CKW http://www.somersoft.com/forums/showthread.php?t=65012 http://www.somersoft.com/forums/showthread.php?t=64987&goto=newpost Thu, 02 Sep 2010 07:33:15 GMT Hiya guys,

My borrowing with Westpac is at the 2.0 mil mark and my current rates are at 6.51%.

A question that pops in my head: Should I be looking to renegotiate at this stage with my banker?

I read elsewhere in this forum that NAB's rates are at 6.39% (0.85 discount from 7.24%). Is it time to pay a visit to the Branch manager....






________ ]]> Property Finance Gentle_Chief http://www.somersoft.com/forums/showthread.php?t=64987 http://www.somersoft.com/forums/showthread.php?t=64958&goto=newpost Wed, 01 Sep 2010 06:13:36 GMT Hi all Have a question re bank guarantee, hoping to get some input here. We are about to hand over a Bank Guarantee secured with cash (term deposit) to a developer as deposit on purchase of OTP apartment unit, to be completed in three years. We would like to use the funds from the term deposit... Hi all

Have a question re bank guarantee, hoping to get some input here.

We are about to hand over a Bank Guarantee secured with cash (term deposit) to a developer as deposit on purchase of OTP apartment unit, to be completed in three years.

We would like to use the funds from the term deposit as part of our deposit come settlement time.

What we are not clear about, what are the processes around this? Will developers be happy to release the bank guarantee before settlement? We should think not as that is our 10% deposit. But until that is released we may not be able to settle due to lack of funds. A bit of a catch 22 going on there...

We are asking the question now just in case we need to secure/ save up more in order to settle. Thanks for reading and your thoughts appreciated :)


WB ]]> Property Finance WizardBlade http://www.somersoft.com/forums/showthread.php?t=64958