LMI in Brisbane middle ring

Discussion in 'Loans & Mortgage Brokers' started by Hayden94, 29th Sep, 2018.

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  1. Hayden94

    Hayden94 Active Member

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    14th Jun, 2018
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    Location:
    Sunshine Coast
    Hey guys,

    We’ve applied for pre approval for 570k in 3 neighbouring Brisbane middle ring suburbs, 10-14km radius. 90% IO, Suncorp has accepted but will only go two 90% in one of the suburbs. The other two we can only borrow 80% as the LMI company feels overexposed and doesn’t want anything to do with those suburbs anymore. The suburbs are investment grade, high OO areas.

    Can anyone give me a bit more of an idea about this. I can understand regional, off the plan, apartments etc but quality property in a quality city location? Any thoughts would be appreciated, wondering if this is normal or not. Cheers.
     
  2. jazzsidana

    jazzsidana Well-Known Member

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    Melbourne
    Banks will and should keeps books balanced and spread the risk at all times. It's in best interest of economy, investors and shareholders..

    And if they heavily exposed to some suburbs due to it's potential at some point plug has to be pulled to avoid any further risk and spread the love to other burbs!!!..


    Cheers,
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Might be better of just using a major with an LMI DUA (authority to approve LMI in house) - then it's unlikely you'll run into these issues.

    It's not common to have an LVR restriction on detached houses in capital city locations - or I just don't come across it very often.

    Cheers

    Jamie
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Its not

    WBC or CBA for example wont have any issues with a house in any inner burb

    ta

    rolf
     
  5. Jamesaurus

    Jamesaurus Well-Known Member

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    What suburbs are you talking about? Is there other undesirable factors the the suburb e.g. waste facility, army base, flood zone for example??

    If they are truly high OO areas then spreading their risk shouldn't be the case with a low number of investor loans in the area..
     
  6. Hayden94

    Hayden94 Active Member

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    Location:
    Sunshine Coast
    Thanks for your replies. We’ve got a better deal with Suncorp so will stick to them for the one suburb and then just go with a major if we end up buying in one of the other two. Property is a finance game and I get a little frustrated with how much I struggle to get my head around it all. I know it’s the brokers job, but I want to know what’s going on myself.
     
  7. Hayden94

    Hayden94 Active Member

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    Sunshine Coast
    Ferny, Arana and Everton Hills, approved for Ferny and that’s it. Would love to hear your thoughts
     
  8. Jamesaurus

    Jamesaurus Well-Known Member

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    Location:
    Canberra
    IMO the demographic for those suburbs are solid: >70 OO%, <5% public housing, < 3% vacancy rates, >20% median income >3k/wk.
    Only select parts in flood zones, not too close to the barracks, the ferny grove waste plan is on the other side of samford rd.. in conclusion nothing wrong with those places..

    I like Jamies idea above, the problem is with the LMI company being overly risk adverse and putting themselves out of the market- go with a bank that deals with sensible investors like yourself and LMI companies with investor friendly policies.

    all the best
     
    Hayden94 likes this.