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  1. #1
    Join Date
    Aug 2009
    Location
    All of New Zealand
    Posts
    835

    Red face Non banks and Investment loans

    As we all know the dear old RBNZ limit banks to 70% standalone on investment property plus most banks apply a 2% ish margin to stressing other lending on a 25 year P&I basis, this makes servicing a real pain.

    At last a real alternative to bank lending with the launch of an 80% standalone investment loan at 5.09% fixed for two years and with the stressing of other lending at pretty much what it costs.

    Non bank lender funded from overseas so no RBNZ restrictions and lending on a commercial basis, not regulatory.

    Happy to chat through any scenario
    www.ilender.co.nz
    Financial Paramedics

  2. #2

    Default

    Hi Brokerman - how do the non bank lenders assess values? Do they use CV or do they expect the owners to stump up for valuations?

    As an example:

    Homes has the value of one of my properties at $505k which is really quite close to what similar properties in the same area have been selling for (maybe even a little under) while the CV is $345k. The CV is due to be updated this year but till then the bank has said valuations couldn't be used if they're more than 12 months old resulting in a huge cost whenever we wanted to increase borrowings to get everything valued or use CV.

    The LVR requirement is not the issue - the cost of valuations is and if non bank lenders are willing to fund valuations or accept different forms of valuations the higher interest rate may be worth considering.
    Last edited by Don't believe the Hype; 01-06-2019 at 06:41 PM.

  3. #3
    Join Date
    Aug 2009
    Location
    All of New Zealand
    Posts
    835

    Default

    Registered Valuation only as its the only one worth anything!
    www.ilender.co.nz
    Financial Paramedics

  4. #4
    Join Date
    Apr 2009
    Posts
    912

    Default

    Quote Originally Posted by brokerman View Post
    Registered Valuation only as its the only one worth anything!
    And there lies one of the tools to growing a portfolio faster than the average investor. Learn how to choose a valuer who will give you the highest value. Non bank lenders are less strict than banks, they take on a bit more risk and they expect to receive a slightly higher interest rate. But you will find you will free up a lot more capital to achieve more, faster. The 1% only extra interest per annum is peanuts in the big scheme of things. You just need to put the extra capital to work.
    Last edited by DaveW; 02-06-2019 at 02:27 AM.

  5. #5
    Join Date
    Apr 2004
    Posts
    757

    Default

    Very interested... will be in touch once I re-fix current loans .. as Iím interested in a small commercial property my current bank would lend on but at high 2%+ rates

  6. #6
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    779

    Default

    Quote Originally Posted by JBM View Post
    Very interested... will be in touch once I re-fix current loans .. as I’m interested in a small commercial property my current bank would lend on but at high 2%+ rates
    Dan Walker here from Colliers in Napier New Zealand. Has got a retail complex for sale with a rental income of approx $750k net per annum, seismic strengthened and over 3000sqm of CBD land. Net Returns 8%-9%. Would you have any interest in something like that? Or is that too small ?

  7. #7
    Join Date
    Apr 2009
    Posts
    912

    Default

    I would be happy to assist a would be buyer with due diligence for this if anyone is interested.

  8. #8

    Default

    Quote Originally Posted by brokerman View Post
    Registered Valuation only as its the only one worth anything!

    Thanks brokerman. This is the same requirement as the banks and the cost I'm looking to avoid. If I have to pay for valuations I may as well go with a bank to get the lower interest rate. I'm not interested in gearing beyond the level they'll fund (ie current LVR limits)

  9. #9
    Join Date
    Apr 2004
    Posts
    757

    Default

    Quote Originally Posted by Beano View Post
    Dan Walker here from Colliers in Napier New Zealand. Has got a retail complex for sale with a rental income of approx $750k net per annum, seismic strengthened and over 3000sqm of CBD land. Net Returns 8%-9%. Would you have any interest in something like that? Or is that too small ?
    I wish >> that's way-way out of my league

  10. #10
    Join Date
    Oct 2013
    Posts
    1,609

    Default

    Quote Originally Posted by JBM View Post
    I wish >> that's way-way out of my league
    Is out of most people's leagues - Beano can just be a bit like that sometimes!

    But get 10-35 friends together and surely you can raise the $3.5M deposit to buy the place, no? Reckon I'd be in for a share or two
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.


 

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