New apartment = huge stamp duty savings???
- Thread starter kylz44
- Start date
You will be laughing if you can grab a house!
Just be careful that with NRAS properties not all lender will take the tax benefits of an NRAS investment property into account when they are assessing your ability to repay the debt.
Yes, i have read that. I was originally planning on borrowing 20% deposit plus holding costs etc against my PPOR and the other 80% from Firstmac, but after Rolf's suggestion last night, it has made me think whether i should try Westpac or St George and see if i can borrow closer to 90% and thus not put as much against my PPOR!! Guess we will have to see what they will lend us anyway so we can work out which option to go with.
Westpac is great with NRAS properties however they are one of the lenders that do not take into considering the tax benefits of NRAS when conducting a servicing calculation.
Yeah, we may be stuck having to go through Firstmac and do the 80% thing, we shall see 
I went along to look at the units today and asked about the stamp duty saving that is advertised and the agent said that was posted by the old agents that were selling them OTP about 2yrs ago and hasn't been taken down yet. So unfortunately SD is still going to be around $15k Bummer!!! HEHE
I went along to look at the units today and asked about the stamp duty saving that is advertised and the agent said that was posted by the old agents that were selling them OTP about 2yrs ago and hasn't been taken down yet. So unfortunately SD is still going to be around $15k
Bummer!!! HEHEWestpac's NRAS product is much better than Firstmac's product. Check if you service with Westpac before going to Firstmac. Also check if the NRAS is under a Head Lease arrangement for under a Non Entity Joint Venture arrangement. Westpac lends a maximum of 85% for hard lease and 90% for a non entity JV.
Look at the NEJV where possible....
Are you looking at just melbourne or interstate as well?
I always find these comments kinda interesting, because they neglect to reflect the difficulties with higher decline rates for those lenders offering higher LVR's for NRAS, due to the way Genworth credit scores NRAS. How does that equate to "much better"?
But more importantly, I dont see the point of incurring LMI on an investment strategy which is all about cash flow, whether that lender is westpac or alltheteainchina building socity bank credit union or anyone else. The loan is just a tool and while LMI can be a fantastic tool also, for investors the cost of LMI adds to the end price , or end debt, and impacts cash flow. Why do that if it isnt necessary? At the end of the day, this is a cash flow play, and if someone has the equity in another security to provide 20% plus costs, and to do 80% or below on NRAS whether that be at WBC, FM, ABL or anywhere else- why pay for LMI?
Always find these comments interesting.....
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Nope, they're not. Providence Housing operates an NEJV, and that's been the case since April of 2012.
People are STILL handing out bad information on the scheme and the consortiums it seems. They advised you incorrectly on this occasion.The only Head Lease models are Brisbane Housing Company and QAHC - QAHC also operates a second model in conjunction with their HLA model. Buyers choice is the way they work it, basically. Their "alternative " model is neither a HLA nor a NEJV.. anyone else confused?
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