When banks call in their loans Let’s say that there’s a change in the banking policy and the bank no longer believes that the infrastructure’s in that town anymore and call in all of their loans. You have to refinance. Usually you have about 30 days...
Can you see the trend? What happens now is you’ve got a court case against you for something to do with one of your properties. When you bought the property, the verandah was unsafe and despite this being in the building report upon purchase, you didn’t...
Why not cross securitise? What happens is, the bank takes both houses as security and wraps the two mortgages together? Let’s say we’ve got $830,000 worth of asset and we’ve got $430,000 worth of loans adding the second one in to the total. So we’ve still got...
Using Equity Using capital that you have sitting in your own home means that you are converting your equity into a future pension. You are using the equity that’s sitting there not being used at the moment and putting it into a property where it is...
The Lending Process Here is a flow chart to demonstrate the process that the bank goes through to determine whether your loan application will be approved or not: There’s a lot more to finance than the way you structure your finance, which is important. When you start...
Collateral Collateral is basically what usable equity you have in your home or other real estate investments. I say usable equity because in some cases it may be beneficial to utilise the Mortgage Insurers and get 90% against the value if your equity position is weak. Most...
Settlement Day A lot of people have to be there on settlement day. You’ve got both sets of bankers, and both sets of lawyers. They’ve all got to be at the one spot at the one time, do all their bits, do their little inputs for...
Pre-Settlement Inspections Of course, on settlement day, one of the things that I highly recommend is you go and do a pre – settlement inspection. If you are buying a place at a distance, then send around the building inspector. The building inspector has inspected the...
Insurance In New South Wales, the risk of the property passes at settlement. However, the practice is still, once it’s signed, as a matter of prudence, you should take out your own insurance for a number of reasons. You don’t know that the seller has got...