Yes or No?

Hi

Hypothetical situation, but possibly will be me in a few months time.

$100k+ cash

No other assets and no liabilities

No job

Is it possible to get a loan based on this situation?

I will be purchasing CF+ properties and essentially they will be self-funding; ie rent completely covers all outgoings and in fact there is an excess each week.

Any ideas/help would be appreciated


Thanks

D
 
Well there are ways to work these through and I have done it before - I am reluctant to give you too much encouragement without the full facts.

But where there is a will there is a way as they say.

Cheers,
 
Hi

Basically I will be going overseas soon for an extended period (perhaps 6 months).

When I return, I will have no job, but will want to buy an IP and want to know if it's in the realm of possibility.

I am looking at the worse case scenario of not having a job and still being able to purchase property.

I hope this helps

Thanks

D
 
Its can be done... But what you need is a good mortgage broker,, I would be happy to assist if you need asistance, Please let me know!


Darren
Mortgage Broker
 
There are no doc loans available out there that will lend you up to 65% of a property purchase price with absolutely no employment requirements. They are essentially asset lends. They don't require you to state an income and they don't require you to disclose your assets and liabilities situation. You just basically put your personal details on the application form and sign it!

Cheers

Patrick
 
The Yes Home Loans NoFin Investment Loan
The No Financials investment loan is for investment and business loans only

Variable Rate 6.83%
*Comparison Rate *6.89%
Application Fee $790.00
Monthly Repayment on $100,000.00 $695.97
Ongoing Fees (per annum) $0.00

75% up to $500,000 Investment purposes only
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60% $500,001 to $600,000 Investment purposes only
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http://www.yeshomeloans.com.au/
 
You could use a portion of the funds (say $70K) to purchase an annuity to provide you with an income stream. Then, in fact, you will have a modest deposit ($30K) plus an income stream.
 
Hi all,

Kev,
If the "price" of the annuity is 2.5% pa, then the Lo Doc loan is a far better proposition with the far higher deposit.
Also with a +geared property(has to be due to no other income) the risk of no cap growth over say 5 years could come back to bite you if you went the annuity route.

bye
 
Hi Bill:

Can you explain more what you mean by the "price" of the annuity? I realise that buying an annuity, like investing in a managed fund, may have a cost associated with it.

I guess it's also possible (but I don't know) that some annuities may not have an up-front cost, but a lesser interest rate to make up for it.

Are you getting confused with the Navra Cashbond examples where borrowed money is used to buy the annuity and hence the "price" of using the annuity is the difference between the borrowing rate and the annuity's interest rate (which in our current interest rate environment would be around 2.5%)?
 
Hi Kev,

I'm not confused in the slightest, sometimes I think, then again maybe I am.

But not related to this topic anyway:D

If you use your money to buy an annuity, then you have to borrow more for the actual property as you now have a lower deposit. Hence the cost is equivalent to if you had to borrow the money to buy the annuity.

Annuities come at a cost, why else do you think financial institutions are prepared to pay commissions of 3-4% of the purchase price and trailing annual fees to get your money(whether you borrow it or not).

bye
 
Thanks guys for all your input

I like the conventional method of getting a lo docs type loan. I guess once I get a property or two under my belt, I effectively will have an income.

Thanks

D
 
Deeman
I would suggest the HSBC Bank for this type of thing, I may be switching to them myself. They have suprised me twice now, with what they will lend..
188 Swanston Street,
Melbourne VIC 3000
T: 1300 308 008
(03) 9652 3260
 
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