Triplex Finance

[belleran]

We originally set up the trust to trade shares but found we didn't have the time or talent to do well at it.
There could possibly be a better structure but we just used what we already had available as we have bought land, built duplexes, kept some and sold others. No negative gearing involved and we have been able to distribute some profits to our four 18+ children who have been on very low incomes.
I hasten to add we are not developers. We are investors. Shameful to say in the presence of seasoned investors but we didn't have a plan. It was just something I enjoyed doing so whenever the inspiration and opportunity coincided I found myself purchasing land and/or building.
There could possibly be a better structure but we just used what we already had available. We have steered away from negative gearing so the trust has suited that way of operating. If we had negatively geared we would have built in my husband's name as the higher earner.
Now you can tell me what I should have done! "...for the SS Community"

 

[Qlds007]

Never like to doubt Rolf but i dont think Choicelend will do it as max 2 on 1 title and then only where you have clear evidence of sub-division on completion.

Got a triplex deal doing here in Brissie at the moment and we got the client normal 0.7-.8 rate discount etc.

You mentioned Anz but foget them as they cap out at 70% and have heart attack > duplex.

 

[Aaron_C]

Meh. ANZ's sales team are a bunch of liars. Kept lying to a client that they could do 4 units on one title construction, at 80% LVR. I told him that it was just all ******** and eventually their Credit department proved me right - so I got him an 80% LVR construction loan, no hassles, no BS. Sick of ANZ, seriously.

 

[Qlds007]

Aaron perhaps they were re-writing the Credit Manual out of Mumbai when they gave you the last update.

On a separate is Mina your BDM ?

 

[Aaron_C]

Aaron perhaps they were re-writing the Credit Manual out of Mumbai when they gave you the last update.

On a separate is Mina your BDM ?

Haha I didn't submit the deal to ANZ because I knew it was false. They were saying under the 'affluent' package that they were entitled to 'waive' policy requirements. I just laughed.

And yes, she is my BDM.

 

[Rolf Latham]

Meh. ANZ's sales team are a bunch of liars. Kept lying to a client that they could do 4 units on one title construction, at 80% LVR. I told him that it was just all ******** and eventually their Credit department proved me right - so I got him an 80% LVR construction loan, no hassles, no BS. Sick of ANZ, seriously.

was never going to happen

even a granny is outside of policy at 80, pretty much been that way for 10 years ?
ta
rolf

 

[Rolf Latham]

Never like to doubt Rolf but i dont think Choicelend will do it as max 2 on 1 title and then only where you have clear evidence of sub-division on completion.

.

Meh, Im German and male

so often wrong BUT never in doubt.

In this case Bella is looking to sell 1or 2 so Id assume she will have SD at commencement, and Advantedge policy does fit, got an approval just this week for an 1175 build and hold SD project with 3 Villas.

Its is only conditional at this point subject to SD approval and vals so you may prove to be right yet, coz as we all know, things can be approved one week and out of policy the next : (

ta
rolf

 

[Qlds007]

Being with Fast so using Fastlend things maybe different.

Had one in Brisbane last week for a duplex but because of the way in which the sub div was taking place Advantedge credit declined it.

As i say maybe horses for courses but not with Fast.

 

[Rolf Latham]

We originally set up the trust to trade shares but found we didn't have the time or talent to do well at it.
There could possibly be a better structure but we just used what we already had available as we have bought land, built duplexes, kept some and sold others. No negative gearing involved and we have been able to distribute some profits to our four 18+ children who have been on very low incomes.
I hasten to add we are not developers. We are investors. Shameful to say in the presence of seasoned investors but we didn't have a plan. It was just something I enjoyed doing so whenever the inspiration and opportunity coincided I found myself purchasing land and/or building.
There could possibly be a better structure but we just used what we already had available. We have steered away from negative gearing so the trust has suited that way of operating. If we had negatively geared we would have built in my husband's name as the higher earner.
Now you can tell me what I should have done! "...for the SS Community"

I dont see a problem with this at all.

Maybe the accountants can improve ?
ta
rolf

 

[belleran]

The accountant has never suggested a different structure.
What is SD?

 

[Blacky]

I have just got approval for 3 through CBA, and it was relatively painless.

When I originally applied to Wesuck they performed 14 credit checks, and then declined the loan due to too many credit checks (I only had 2 others at the time of application).

Blacky

These are on 3 individaul titles though, so it might be different to your scenario.

 

[Rolf Latham]

I have just got approval for 3 through CBA, and it was relatively painless.

When I originally applied to Wesuck they performed 14 credit checks, and then declined the loan due to too many credit checks (I only had 2 others at the time of application).

Blacky

These are on 3 individaul titles though, so it might be different to your scenario.

worstpac shouldnt have taken it on in any case : (

Outside of their RESI policy most times.........

Glad u got it placed in the end

tarolf

 

[Aaron_C]

These are on 3 individaul titles though, so it might be different to your scenario.

3 on one title and 3 on separate title are TOTALLY different.

 

[belleran]

If you were buying units ready built, which is easier to find finance for? 3 strata titled units or 3 unstratatiltled units?

 

[Aaron_C]

If you were buying units ready built, which is easier to find finance for? 3 strata titled units or 3 unstratatiltled units?

The former, without a doubt.

 

[Rolf Latham]

If you were buying units ready built, which is easier to find finance for? 3 strata titled units or 3 unstratatiltled units?

depends

some lenders are a pain and wont allow you to have more than 25 % of the strata development : ),ie no more than one unit.

the things you learn when doing "take out" finance can be scary

I can place a 5 or 6 pack of 2 bedders in a metro area at 80 % lvr and resi rates every day of the week, but if the same place is 5 strata units, it can be TOUGH to get 80 at resi rates.

ta
rolf

 

[EagerAchiever]

The comments regarding Westpac are slightly concerning as I bank with them and have been having some issues of late and hopefully this is the last of it.

I planned on using the equity available plus savings to pull together my 10% deposit to fund the project which they also tell me won't be of commercial nature due to it only being a triplex development... Anybody shed some light on this?

Regards,
Mark

 

[Aaron_C]

3 unit construction is not a commercial development. However I think you will struggle to get Westpac to fund a 3 unit construction under residential terms. It is not within the major banks' policy at all.

 

[Rolf Latham]

The comments regarding Westpac are slightly concerning as I bank with them and have been having some issues of late and hopefully this is the last of it.

I planned on using the equity available plus savings to pull together my 10% deposit to fund the project which they also tell me won't be of commercial nature due to it only being a triplex development... Anybody shed some light on this?

Regards,
Mark

Hiya

Depending how what where and when there are some lenders that will fund this, but wbc resi unlikely

they struggle with a detached granny flat above 80 % lvr

ta
rolf

 

[EagerAchiever]

Hmm, not the news I wanted to hear.

How does one find out what they will entertain then as the home lending people haven't a clue so far? Will I have to go through the pain like Blacky did and find out right at the end that I have been rejected or can they give me some up front information to save me wasting my time?