IS a loan like this possible?

[bam*bam]

Hey there everyone,

I was after some advise from some of the more seasoned investors/professionals out there. I am looking at buying a property for $900k, but has been valued by 2 banks (comm bank and st george) at $1.5m. (reason for the cheap price is that the developer has a cash flow problem). Now am I able to borrow the whole $900k ( I will be paying for the stamp duty's with my savings) on a joint income of $120k (before tax) a year with NO DEPOSIT? Rental valuation from 2 agents has been put at $1200 per week and I have a strong savings history with my bank.

Your help would be appreciated.

 

[Rolf Latham]

100 % lend

probably not in the current enviro


ta

rolf

 

[auror]

Is it commercial or residential?

Can you borrow money from anyone at all to get yourself over the line ie. 95% or 90% LVR?

 

[Qlds007]

100% Nah chance think 95% would be a miracle.

 

[bam*bam]

loan

so no chance even though the property is worth much more than the buy price? Aren't I less of a risk this way, than if I was borrowing 90% of the full 1.5m?

I can come up with 10% deposit as well as the stamps, but would prefer not to .

 

[Gools]

The bank will take the value of the property at what you are paying for it.
If it's really worth $1.5m then surely the developer could get close to that money for it? That's what the bank would be saying anyway.

Gools

 

[Kristine..]

I am looking at buying a property for $900k, but has been valued by 2 banks (comm bank and st george) at $1.5m. ... I will be paying for the stamp duty's with my savings) on a joint income of $120k (before tax) a year with NO DEPOSIT? Rental valuation from 2 agents has been put at $1200 per week and I have a strong savings history with my bank. .

Hi bam*bam

you don't mention whether you will be buying this for owner occupation or for investment

You say you have $90,000 to use as a deposit plus the $50,000-ish required for Stamp Duty in Victoria

Question: Do you have any relationship with the builder, or is this an 'on the market' sale?

Advantageous purchases between known parties have slightly different lending policy that on market sales

I would think it's worth having a crack at.

Question: What is the breakdown of your incomes, do you have any dependents, and what other credit facilities eg other mortgage loans, personal loans, credit cards do you have which would affect serviceability?

A very rough back of the envelope calculation (on the basis of an $80,000 income and a $40,000 income with no dependents and no other commitments) puts your borrowing capacity at about $900,000 - $1,000,000, depending on the lender and loan product.

I have certainly had deals where people are buying at less than the market value and been able to arrange Consideration plus purchase costs, ie, up to about 105% on a standalone purchase.

However, and this is an important however, much will depend on the circumstances of the sale.

Hope this helps

Kristine

 

[Rolf Latham]

An objective view usually means u can get a 10 % discount on market val. After all, market is market. While there are exceptions they are few and far between, especially where new stock is involved.

Much more than that and market efficiencies take over.

The best way to tackle this puppy is to get someone else with money in with you and share the profit.

ta
rolf

 

[josko]

Hi Bam Bam,

Kristine is in your neighborhood, I would give her a call and discuss some creative ideas.

Rolf's alternative is a great idea. You may need a business partner.

Regards JO