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Hi Everyone
Just wanted to introduce myself. I’m a new member here. I’ve been lurking for a while now but this is my first post. This forum has been an amazing resource of knowledge for me over the last few months as I move closer to getting onto the property ladder. The site reno looks great by the way.
I had a couple of questions I was hoping to put forward
I’m a kiwi living in Oz, (Australian for tax purposes) and have been getting my ‘ducks in a row’ so to speak over the last few months to start investing.
I’m focusing on investing in a high yielding property in particular 2 homes on 1 title or a block of units, or a place with a granny flat or the like.
I’ve gone through a broker for a mortgage and have got a conditional approval back today
I’ve got $100,000 or slightly more if need be for a deposit
Bank (ANZ) will loan $400,000 with the following conditions:
Full S&P agreement acceptable to the Lender in all respects (please ensure that the security meets the standard residential property requirements, i.e. no small apartments, small town location, multiple units on single titles, bare land, dry rot in the dwelling etc.) Once the sale and purchase agreement has been provided the Lender will advise if a registered valuation is required.
Written rental appraisal from an independent Real Estate Agent or a tenancy agreement totalling no less than $700 per week – note that this can be less if the purchase price is less
So my questions are:
1) No multiple units on a single title. Is this a standard condition? Has anyone else come across this recently? It’s ironic that this is the kind of property I’m after.
2) Property must return at least $700 in rental per week. This seems in direct contradiction with not allowing me to purchase multiple income streamed property. How is a standard 3 beddy (under $500,000) meant to return $700 a week?
My broker advised that most banks will only lend to 70% because I’m in OZ, (I’m lending 80%) and if I wanted to look at purchasing multi units on a single title I would be looking at 70% LVR as well.
So what are my options from here? How can I get this condition nixed. Do I need to come up with another 10% deposit and/or should I look at including my girlfirends income to reduce the servicing requirement of $700 return?
Any advice would be great
Question 2
If I’m looking at purchasing a multiple income streamed property, how do I go about dealing with existing tenants in the S&P agreement I’ve read a few posts about inheriting tenants and reviewing existing tenancy agreements prior to purchasing (as you inherent the existing agreement) which I understand but what kind of clause do I need to put in for this?
Eg. Conditional on buyers’ approval of existing tenancy agreement, or approval on tenants’ agreeing to signing up to a new tenancy agreement?
Basically I want to safe guard myself from inheriting dodgy tenants. But vacant possession seems like a big ask if say the property is a block of 4 units.
Again any advice would be great
Many thanks
Just wanted to introduce myself. I’m a new member here. I’ve been lurking for a while now but this is my first post. This forum has been an amazing resource of knowledge for me over the last few months as I move closer to getting onto the property ladder. The site reno looks great by the way.
I had a couple of questions I was hoping to put forward
I’m a kiwi living in Oz, (Australian for tax purposes) and have been getting my ‘ducks in a row’ so to speak over the last few months to start investing.
I’m focusing on investing in a high yielding property in particular 2 homes on 1 title or a block of units, or a place with a granny flat or the like.
I’ve gone through a broker for a mortgage and have got a conditional approval back today
I’ve got $100,000 or slightly more if need be for a deposit
Bank (ANZ) will loan $400,000 with the following conditions:
Full S&P agreement acceptable to the Lender in all respects (please ensure that the security meets the standard residential property requirements, i.e. no small apartments, small town location, multiple units on single titles, bare land, dry rot in the dwelling etc.) Once the sale and purchase agreement has been provided the Lender will advise if a registered valuation is required.
Written rental appraisal from an independent Real Estate Agent or a tenancy agreement totalling no less than $700 per week – note that this can be less if the purchase price is less
So my questions are:
1) No multiple units on a single title. Is this a standard condition? Has anyone else come across this recently? It’s ironic that this is the kind of property I’m after.
2) Property must return at least $700 in rental per week. This seems in direct contradiction with not allowing me to purchase multiple income streamed property. How is a standard 3 beddy (under $500,000) meant to return $700 a week?
My broker advised that most banks will only lend to 70% because I’m in OZ, (I’m lending 80%) and if I wanted to look at purchasing multi units on a single title I would be looking at 70% LVR as well.
So what are my options from here? How can I get this condition nixed. Do I need to come up with another 10% deposit and/or should I look at including my girlfirends income to reduce the servicing requirement of $700 return?
Any advice would be great
Question 2
If I’m looking at purchasing a multiple income streamed property, how do I go about dealing with existing tenants in the S&P agreement I’ve read a few posts about inheriting tenants and reviewing existing tenancy agreements prior to purchasing (as you inherent the existing agreement) which I understand but what kind of clause do I need to put in for this?
Eg. Conditional on buyers’ approval of existing tenancy agreement, or approval on tenants’ agreeing to signing up to a new tenancy agreement?
Basically I want to safe guard myself from inheriting dodgy tenants. But vacant possession seems like a big ask if say the property is a block of 4 units.
Again any advice would be great
Many thanks
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