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Buying a Home Off of Parents or Grandparents – Can I Get a Home Loan for a Favourable Purchase?

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Favourable Purchase: What is it?

A favourable purchase is a bank term for what they call a transaction where a property is sold “off market” and under “market value”. Off market means without a real estate agent involved so the buyer and seller either know each other or it’s a private sale. Under market value refers to the situation where the seller is not selling the home for what the property is worth and are therefore in essence gifting the purchaser equity.

The most common example is where mum and dad may be retiring or looking to move or downsize and will want to sell the family home. Sometimes the children decide they would like to purchase the property off their parents. The parents will then sometimes sell the property to the kids for a price less than what they could sell on the open market to help their kids out or keep the home in the family.

This is a favourable purchase and different Australian lenders apply different policy on this issue.

How do the banks view a favourable purchase when approving a home loan?

It is important to distinguish a favourable purchase from a sale where the buyer believes they are getting a great deal and buying the property at well below market value. Banks will always lend and base their LVR and deposit requirements on the lesser of the contract of sale price or the valuation unless an exception applies. If for example you purchase a property for $500,000 and the valuation did come in higher at $550,000, the bank will base their LVR and deposit requirements on the lesser of the two, in this case the purchase price of $500,000. If however the valuation came in lower than the purchase price then the banks will base it on the lower of the two being the valuation.

Just stating that you have got a great deal is not sufficient to get the bank to make an exception to the rule and base their deposit and LVR on a valuation that came in higher. There must be a compelling reason why the vendor is selling under market value – the fact they are going bankrupt or it’s a deceased estate is not a compelling reason as, theoretically, what you are paying is market value as that is what the market has deemed the property worth on that given day.

The primary reason why the bank would make an exception is where a favourable purchase is involved. If parents are selling to children the banks understand that there is a reason there, essentially being for love and affection, why the parents are selling below market value. The result is that many lenders will base their LVR and deposit requirements on the actual valuation and not the purchase price.

So what does this mean to me and how much deposit will I need?

When purchasing a home in Australia and getting a home loan you need a deposit. Generally the absolute minimum deposit you would require would be 5% and the bank would then loan you the other 95% of the purchase price.

In a case of a favourable purchase, some banks will actually see the gift equity as your deposit. For example, if you were purchasing a property from your parents for $400,000 that was valued at $500,000, some banks will view the $100,000 gifted equity there as your deposit and therefore you can borrow the entire $400,000 without having to put in any deposit of your own.

Every bank has their own policy on this with some only lending against the actual purchase price – ie, they might only lend 95% against the $400,000 purchase price or will only lend to a maximum of 80% of the valuation. But there are lenders that will lend the full 100% of purchase price plus costs up to 90% of valuation without the client having to put in any cash of their own.

Here is another example to illustrate how the different bank policies work:

Assume David was going to buy his grandmothers property so his grandmother could move into a retirement home. The property valued at $300,000 and his grandmother needed $270,000 to ensure she had enough to pay the accommodation bond etc. So the purchase price was below market value at $270,000 and it is between related parties. The banks will deem this a favourable purchase.

The bank will base the LVR/Deposit on the purchase price of $270,000. This particular lender required a 10% deposit which is $30,000. $300,000 less $30,000 leaves a loan amount of $270,000 which means that David could borrow 100% of the purchase price and would only have to pay for his stamp duty and legal costs.

Another lender though will only lend to 80% LVR. 80% on $300,000 is $240,000. If David went to this lender he would need a 20% deposit which is $60,000. $30,000 is available in equity and therefore David would need to contribute $30,000 of his own cash plus stamp duty.

Every lender has their own policy on favourable purchase home loans so it is recommend you engage a mortgage broker who has experience in favourable purchases.

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TA: Ethereum Reclaims $3K, Why ETH Could Rally To $3,400

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Ethereum

Ethereum started a decent recovery and climbed above $3,000 against the US Dollar. ETH price could accelerate higher if it clears the $3,200 resistance zone.

  • Ethereum started a decent upward move above the $3,000 and $3,050 levels.
  • The price is now trading above $3,000 and near the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to rise if it clears $3,135 and $3,200 in the near term.

Ethereum Price Is Rising

Ethereum formed a support base above the $2,650 and started a steady recovery wave. ETH broke the $2,800 resistance zone and gained pace, similar to bitcoin.

There was also a break above a major bearish trend line with resistance near $2,950 on the hourly chart of ETH/USD. The pair surpassed the 76.4% Fib retracement level of the key decline from the $3,105 swing high to $2,651 swing low.

The price is now trading above $3,000 and near the 100 hourly simple moving average. An immediate resistance on the upside is near the $3,135 level. The first major resistance is near the $3,200 level. It is close to the 1.236 Fib extension level of the key decline from the $3,105 swing high to $2,651 swing low.

Source: ETHUSD on TradingView.com

A close above the $3,200 resistance could push the price further higher. The next major resistance might be near the $3,400 level. It represents the 1.618 Fib extension level of the key decline from the $3,105 swing high to $2,651 swing low. An intermediate resistance might be near the $3,320 level.

More Losses in ETH?

If ethereum fails to continue higher above the $3,135 and $3,200 resistance levels, it could start a downside correction. An initial support on the downside is near the $3,050 level.

The next major support seems to be forming near the $3,000 level. A downside break below the $3,000 support zone could lead the price towards the $2,800 zone. The next major support is near the $2,650 level, below which ether price might decline towards the $2,500 region in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now well above the 50 level.

Major Support Level – $3,000

Major Resistance Level – $3,200

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ECOMI And VeVe: The Mom And Pop Of NFT Comics And Illustrated Books

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VeVe is looking to lead the way with comic book NFTs.

ECOMI and it’s NFT platform VeVe are carving out a unique niche in NFTs. You never know what may happen to that old Spider Man comic you once loved but lost or threw out. What if that same comic book could be bought and saved online only to grow in value? ECOMI and VeVe are looking to address exactly that. Today’s generation has found a new way to turn digital comics into high value digital NFTs that can be resold for two to ten times (or more) of their initial value. 

The OMI token has remained strong through substantial volatility. | Source: OMI-USD on TradingView.com

VeVe Changes The Landscape For Comic and Illustrated Books

Lets take a quick but deep look into ECOMI and VeVe. VeVe is a block chain digital art app that allows everyday crypto investors and cartoon NFT fans to buy and hold or resell comic books, characters, and even illustrated novels.

What makes VeVe special and different from potential competitors is it’s ability to display your art in 3D anywhere in your home, office, outdoor space or room, etc. – while some people even save them in their personal VeVe vaults for personal joy or flex. OMI, the token behind VeVe, has made huge plays to put VeVe on the map by partnering with super hero comic powerhouse Marvel and DC, and even landing a deal with “The Little Prince” by Antoine de Saint-Exupery.

Related Reading | Number Of Investors Holding Bitcoin Tripled In Last Three Years

All of this action within the past couple weeks will look to help both VeVe and the OMI token rise to the top, and become the face for the new era of digital comic books and illustrations, all within the fast and ever-changing crypto NFT world.

To understand this importance, you must understand the head of the beast: ECOMI. ECOMI is a Singapore-based technology company in the collectible space of digital NFTs. They created VeVe to add a new dimension and spin on the NFT world. Within the few days, the price action has been re: the coin currently sits at $0.005 USD, with a trading volume north of $18M.

Related Reading |  Tomi Heroes NFT Sales Volume Just Exploded Past $1.35M, With Massive ROI Potential For TOMI Sale 

With the recent September 17th announcement of ‘The Little Bear’ deal and the strong price action lately, it is safe to say this is a company, app , and token that you should have on your radar if you’re interested in comics and NFTs that have potential looking forward.

In this new world of potential gold, it’s hard these days to ignore any company that takes on high client projects with good reputations within unique communities across the world. With new investments left and right into immersive NFTs, augmented reality, and other metaverse components, ECOMI and VeVe are making the strides necessary in securing strong IP partners to future-proof the brand.

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Lark Davis Depicts Next 9 Years Prolific for Crypto Investments

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Lark Davis Depicts Next 9 Years Prolific for Crypto Investments
  • Lark Davis takes on twitter, tweeting his views on next 9 years for crypto 
  • He terms the next 9 years to be the best for increasing the profits with cryptos. 
  • Also, he advises investors to set an exit time for best results

For all those crypto enthusiasts here, for sure if you are one you would have known of Lark Davis. And so, for those who don’t, Lark Davis is a profuse crypto analyst and advisor. Also, he’s a profuse investor of Bitcoin (BTC) and other altcoins too.  The well known influencer upon the crypto industry from New Zealand works with the goal of increasing one’s wealth with his advice upon the crypto investments. 

And so, he often puts out his predictions, views and advice openly upon almost all social media like, Twitter, YouTube and much more. In spite of this, the crypto geek took to twitter in the early hours of September 22, with his views.

Davis Tweet Depiction

Upon the tweet Davis starts with the term ‘Final’ which implies that with all profuse brainstorming, he’s firm with what he’s stating. 

Accordingly, Davis states in the tweet that he’s so confident and firm to his beliefs that the crypto industry will be the best wealth creator for the next 9 years. 

Also, he states this will be applicable till the end of this decade, until 2030. On the other hand he also poses a cat on a wall theory that his conclusions may either be true or false, yet he strongly believes in his statements. 

Furthermore, Davis terms investing upon  the cryptos for the next few years is the one and only best way for multiplying the assets profusely. This is to profits which no other industry could grant. 

Davis Warnings

At the same time, Davis ends the tweet with some valuable advice. And so, he states that the investors should be cautious with their exit time.

 Also he terms a fixed exit time is essential to gain the much fruits from the crypto industry. 

Moreover, he concludes that investors should be cautious enough to exit precisely and not to lose their assets and profits made back to the market itself.

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TA: Bitcoin Prints Bullish Pattern, Why Close Above $44K Is Critical

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Bitcoin

Bitcoin price started a decent increase above the $42,000 level against the US Dollar. BTC is now eyeing a key upside break above the $44,000 resistance zone.

  • Bitcoin started a recovery wave above the $42,000 and $43,000 resistance levels.
  • The price is still trading below $44,000 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $42,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could accelerate higher if there is a clear break above $44,000.

Bitcoin Price Starts Fresh Recovery

Bitcoin price remained well bid above the $42,000 level. BTC formed a support base and started a decent increase above the $42,500 level.

There was a break above a major bearish trend line with resistance near $42,500 on the hourly chart of the BTC/USD pair. The pair climbed higher above the $43,000 and $43,500 resistance levels. It even tested the $44,000 level.

However, the bulls are struggling to gain strength above $44,000. Bitcoin is still trading below $44,000 and the 100 hourly simple moving average. A high is formed near $44,024 and the price is now consolidating gains.

It even tested the 23.6% Fib retracement level of the recent increase from the $39,579 swing low to $44,024 high. On the upside, an immediate resistance is near the $44,000 level. The first major resistance is near the $44,200 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A clear break above the $44,000 and $44,200 levels could start a strong increase. The next major resistance is near the $45,000 zone, above which the price could rise towards the $47,000 resistance.

Dips Limited In BTC?

If bitcoin fails to clear the $44,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $43,000 level.

The next major support is near the $42,000 zone. The 50% Fib retracement level of the recent increase from the $39,579 swing low to $44,024 high is also near the $42,000 zone. A downside break below the $42,000 zone could start a fresh decline. In the stated case, the price could even revisit the $40,000 level in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $43,000, followed by $42,000.

Major Resistance Levels – $44,000, $44,200 and $45,000.

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Judge Denies SEC’s Crypto Transactions to Ripple

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Judge Denies SEC’s Crypto Transactions to Ripple
  • Court denies in granting SEC’s crypto transactions to Ripple
  • Judge says SEC employee’s crypto history is completely irrelevant to the subject 
  • SEC states it has no fundamental obligations or policy upon crypto trading amongst its employees

The battle between Ripple and the U.S Securities and Exchange Commission (SEC) has been on fire since last month. Besides, the SEC now cornering the Ripple platform’s cryptocurrency, the XRP, Ripple fights back profusely. Also, according to the SEC, the Ripple platform and its cryptocurrency XRP are said to be completely insecure with many flaws in terms of security aspects. 

In spite of this, Ripple has filed a charge upon the federal court of New York at the end of August. Accordingly, Ripple requests the court to handover the SEC employee’s crypto trading history and transaction details. This is to the fact that if the employees have traded XRP, then with this Ripple wants to prove that the platform and its native token, the XRP are completely safe and secure. 

However, the entire court seems to be in favour of the SEC, as the judge denies granting Ripple’s request.

The Judge’s Decisions

The federal court judge, Sarah Netburn is found to be rather in support of the SEC and against Ripple. Accordingly, the judge states that the SEC’s Ethics Counsel did not implode Ripple or anything in link with it. 

Moreover, the judge states that in such a case it’s completely unnecessary for the SEC to give out the crypto trading history of its employees. And so, it’s not needed, declares the judge. 

In addition, Sarah points out that the court’s federal rules are to protect the U.S citizen’s privacy rights. 

The Battle History

Furthermore, it seems the SEC and the court favouring it are using the same statistics as that of Ripple previously. 

Accordingly, taking the history into account, at first the SEC has requested Ripple to provide it’s internal communications access. 

However, Ripple denied it. Also, Ripple justified that revealing all those related data and documents is a completely time consuming process and its cost is also a concern.

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Conflux (CFX) Price Sky-Rockets 60 Percent in the Last Week

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Conflux (CFX) Price Sky-Rockets 60 Percent in the Last Week
  • ShuttleFlow is a Conflux-based cross-chain asset bridge.
  • Sponsors pay the user’s transaction costs to assist with onboarding.

Promoting global token economy infrastructure. Conflux connects artists, communities, and markets globally. It is a high-speed first layer consensus blockchain that uses a Tree-Graph consensus algorithm to process blocks and transactions in parallel for improved speed and scalability.

It is the first regulatory compliant, public, and permissionless blockchain in China, linking decentralized economies to enhance the global DeFi ecosystem. Moreover, Conflux uses a well-tested PoW consensus to offer protocol-level security and anti-reentrance attack mitigation.

Increased Issue of Tokens

ShuttleFlow is a Conflux-based cross-chain asset bridge that allows smooth asset transfers across protocols. Moreover, it is the blockchain that can scale without compromising security or decentralization.

Built-in staking interest supports creative DeFi applications. The increased issue of tokens presently yields an annualized rate of 4%. Sponsors pay the user’s transaction costs to assist with onboarding. This mechanism enables individuals with no wallet balance to participate in the blockchain. 

Conflux’s token economy revolves around the $CFX token, which holders may use to pay transaction fees, stake for rewards, rent storage, and participate in network governance. Also, CFX compensates miners who guarantee the Network’s security. The Shanghai Free Trade Zone will explore cross-border trade using the offshore Renminbi (RMB) stable coin.

As per CoinMarketCap, Conflux Network price is $0.393001 USD. In the last 24 hours, the coin has gained 2.55% percent of its value. Furthermore, comparing the current CFX market cap to yesterday’s market value shows an increase.

The CFX gained sixty percent in the past 7 days. Moreover, Conflux Network has recently demonstrated great promise, and now may be an excellent time to invest.

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Bitcoin Falls to $40k Resulting in Over 180,700 Investors Liquidated

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Bitcoin Falls to $40k Resulting in Over 180,700 Investors Liquidated
  • UK’s Financial Conduct Authority publicly warned investors.
  • The largest crypto by market cap fell 10% in the previous week.

Fear of default by Evergrande Group, a Chinese real estate company, triggered a new round of crypto selling. 182,798 traders had been liquidated as of this report. The largest single transaction was a $14.52 million Bitfinex-ETH liquidation order.

CoinMarketCap.com values the global crypto market at $1.84 trillion, down around 1.6% from the previous day. The largest crypto by market cap fell 1% in the last 24 hours and 10% in the previous week.

After Tuesday’s sell-off, Bitcoin seems to have steadied around $40,000 support. After such a drop, analysts expect BTC to stabilize later this week.

A Parabolic Rise is Long Over-Due

Before the flash collapse earlier this month, funding rates were high, according to Delphi Digital, a crypto research company. However, the market was not as aggressive this time, resulting in a slightly better result. The developments surrounding Evergrande may cause increased volatility in the coming weeks.

On the charts, strong overhead resistance at $55,000 may limit short-term purchases. The U.S. With the Fed’s policy meeting ending on Wednesday and Bitcoin options expiring on Friday, volatility may remain high this week.

After this year’s relative Bull Run, an anonymous cryptocurrency expert told Nairametrics a parabolic rise is long overdue. Moreover, several weeks ago, the UK’s Financial Conduct Authority publicly warned investors about the risks of trading crypto assets.

The global crypto market is in the red due to the Evergrande crisis, dubbed as China’s Lehman Brothers. The uncertainty caused by Evengrande’s crisis impacted global stock markets. This crisis has a ripple effect on the cryptocurrency market as well as the global equity markets.

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Study Reveals Even By 2030, C02 Footprint From Bitcoin Mining Not a Concern

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Study Reveals Even By 2030, C02 Footprint From Bitcoin Mining Not a Concern