RHGL now 10.39%

if its a 90% build and youre not ready to build, it wont be their problem.

You might submit the application for the build and get a conditional approval but conditional doesnt mean unconditional. And if the product isnt there after then end of june then they're not going to resurrect it.

if timeframes are correct you have about 2 weeks to get the unconditional out of them - this includes valuations and you getting the builders contracts signed/executed, plans and specs, quotes etc etc

So ring your broker and find out what needs to be done.

But as I've also mentioned, if the product is cancelled then there wont be a lot of alternative but to stay there and hope to heck they dont cause too much pain.
 
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Thanks Luke! My app has been submitted and is with the insurers for the land bit. Builders contracts are all ready. I think it might be best to wait for the land to happen first then attack asap???
 
why wait
they're running so slow I wouldnt
(sorry for answering when I know you did ask rolfiekins as well)

---
advice from rams

Unfortunately RAMS is no longer able to obtain mortgage insurance for its low doc 85 and low doc 90 products after Friday 27 June 2008.

There is NO flexibility regarding this date for new applications. However, discretion will be applied to pipeline business submitted for approval prior to Friday 27 June 2008.#

In addition, RAMS cannot accept existing deals which require material re-work after 27 June 2008, or pre-approved deals which do not settle until late August.

RAMS Commitment to Low Doc Lending

In the current credit cycle, whilst the mortgage insurers have no appetite for this business, RAMS remains committed to the low doc segment and is actively pursuing the opportunity to balance sheet the low doc 85 product. Further details will be provided once available.
 
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I'm not adverse to m/ezy necessarily... the main complaint we get is the exits when compared to a normal bank and no offset but besides that they seem to have pricing models which can fit a bit more. Or they're an 'online lender' not a real bank - that kind of mentality

Quick turnaround on answers too

halftimes over off to watch the Dell.
 
Hiya OC

What lukey said :)

Dont start what ya canna finish.

To be fair, I dont know what the RAMS 90 % lo doc policy post MGIC will be, I can only apply what I have learnt from Mac bank...................and if that applies, run ,.................really fast !

ta
rlf
 
Hiya OC

What lukey said :)

Dont start what ya canna finish.

To be fair, I dont know what the RAMS 90 % lo doc policy post MGIC will be, I can only apply what I have learnt from Mac bank...................and if that applies, run ,.................really fast !

ta
rlf

What to do? Broker says keep going. You say run like the wind.
 
right now I dont think anyone can say 100% what the best route is.

My big thing is to get people to think about it - what has happened so far and if they think it will continue.

Suppose for you it is a question of want vs. have

And a question of how fast you're going to gain 10% to give you more flex down the line.
I.e. say the land is 200 and the build is 300 so a valuers coming in on a valuation at 350k. Houses in the area are selling for 400, which is say the valuation you achieve after its all done a few months later.

So you have 2 options to do it at 80 or 90
80 you can get at circa 8.8ish and 90 is at 9.xx
so it is attractive with the .2 difference (or so).

But if you think after its built that you'll be able to gear it back up to 90 to get cash out after the build then this doesnt appear to be the case, and IF rams lift rates due to they have a captive market and 'funding issues' then you have to work out if its worth your while to refi to another lender. And hope you made 10% in the process so you can get an 80% low doc.

Just seems to me if the product is ceasing you need to prepare that you're going to be there for a while.

BUT you never know, we are looking at today and in a year or 2 rates might be down and its all good.
 
Lukentel, at this stage, if I am planning to keep the build and go to an 80% lend on end val once finished that would be ok. Is that correct?
 
With your circumstances - I dont know outside of you're going to be doing a build with rams (I assume)
So I dont know what is and isnt involved etc.
But I would imagine that an end val of 80 would be preferable to an end val at 90 as it does give you the room to move if you need to

End of the day while it was being run and pre meltdown, rams offered and still does (at present) good rates and competitive products.
The concern is that I dont want to see rams turn into another macquarie and hold customers to ransom when this product closes... we know it isnt an 'if'.

However the differential now would be that westpac is backing them so hopefully this wont happen. While at the beginning the banks were saying they were better or more stable than nonconformers (which may in hindsight be true) they have lifted rates as well...
 
My RAMS low Doc just went to 10.19% :(

On the positive rents are still rising and I;m glad we have half of the IP's fixed at around 6.8%

one IP rent has moved
$200 JUNE 07
$250 JAN 08
$275 JUNE 08
$300 DEC 08 agreed too
 
CisServGif

Interesting this chart,not many can go this low and still stand,i still think
that this chart will turn i bought in at 7 cents not worried 1% time is the only measure of your achievements..willair.."IMHO"
 
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For anyone interested there was a detailed review in the Intelligent Investor a few weeks back about RGH issue 249-page9.., and i don't know the numbers on how many of their costomers are refinancing elsewhere who are with RGH ,but from what i'm told the wave of that are departing will be very profitable..willair..IMHO..
http://www.intelligentinvestor.com.au/
Well they are about to take my arm and leg in refinance fees... so must be some cash rolling in to pay the bills you imagine.

What a mess.. Some lessons are very expensive.
 
Mine just went up to 10.43% as well. Letter dated 20th June 2008.

Previous letter dated 11 June 2008 advising that rate had gone up to 10.39%.

Reminds me of the 12 days of Christmas correspondence below:-

"Dearest John:
I went to the door today and the postman delivered a partridge in a pear tree. What a delightful gift. I couldn't have been more surprised.

With dearest love and affection, Agnes

***

December 15th

Dearest John:

Today the postman brought your very sweet gift. Just imagine, two turtle doves.... I'm just delighted at your very thoughtful gift. They are just adorable.

All my love, Agnes

***

December 16th

Dear John:

Oh, aren't you the extravagant one! Now I must protest. I don't deserve such generosity. Three french hens. They are just darling but I must insist.... you're just too kind.

Love Agnes

***

December 17th

Today the postman delivered four calling birds. Now really! They are beautiful, but don't you think enough is enough? You're being too romantic.

Affectionately, Agnes

***

December 18th

Dearest John:

What a surprise! Today the postman delivered five golden rings. One for each finger. You're just impossible, but I love it. Frankly, John, all those squawking birds were beginning to get on my nerves.

All my love, Agnes

***

December 19th

Dear John:

When I opened the door there were actually six geese-a-laying on my front steps. So you're back to the birds again, huh? Those geese are huge. Where will I ever keep them? The neighbors are complaining and I can't sleep through the racket. PLEASE STOP!

Cordially, Agnes

***

December 20th

John:

What's with you and those birds???? Seven swans-a-swimming. What kind of joke is this? There's bird do-do all over the house and they never stop the racket. I'm a nervous wreck and I can't sleep all night. IT'S NOT FUNNY.......So stop with those birds.

Sincerely, Agnes

***

December 21st

OK Buster:

I think I prefer the birds. What am I going to do with eight maids-a-milking? It's not enough with all those birds and eight maids-a-milking, but they had to bring their own cows. There is poop all over the lawn and I can't move into my own house. Just lay off me. .

Ag

***

December 22nd

Hey:

What are you? Some kind of sadist? Now there's nine pipers playing. And do they play! They never stopped chasing those maids since they got here yesterday morning. The cows are upset and are stepping all over those screeching birds. No wonder they screech. What am I going to do? The neighbors have started a petition to evict me. You'll get yours.

From Ag

***

December 23rd

You Creep!

Now there's ten ladies dancing - I don't know why I call them ladies. Now the cows can't sleep and they've got diarrhea. My living room is a river of poop. The commissioner of buildings has subpoenaed me to give cause why the building shouldn't be condemned. I'm sicking the police on you.

One who means it, Ag

***

December 24th

Listen Idiot:

What's with the eleven lords a-leaping? All 234 of the birds are dead. I hope you're satisfied, you rotten swine.

Your sworn enemy, Miss Agnes McCallister

***

December 25th (From the law offices Taeker, Spedar, and Baegar)

Dear Sir:

This is to acknowledge your latest gift of twelve fiddlers fiddling, which you have seen fit to inflict on our client, Miss Agnes McCallister. The destruction, of course, was total. All correspondence should come to our attention. If you should attempt to reach Miss McCallister at Happy Dale Sanitarium, the attendants have instructions to shoot you on sight. With this letter, please find attached a warrant for your arrest.

-Merry Christmas"
 
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