I highly recommend Mory Kalkopf at:

Guests Accounting
234 Balaclava Rd  Melbourne VIC 3161
(03) 9509 7033      

Regards

If you have been told that you are simply not speaking to the right person, there are numerous options mentioned in posts above, i suggest you speak to somebody who knows what they are talking about, there are plenty of options right in front of you.

Hi MM,

This is a very simple deal, there are multiple ways it could be done but probably the easiest would be with capitalized interest. There are a lot of lenders that won't fund a deal like this, mostly because you are not planning on having an ongoing debt, so it would not be profitable for a standard residential lender to provide funding. if…[Read more]

There isn't one, you have to go to the individual council. I think some of them may have that info available through their web sites.

Lowest rate at the moment is 4.99% for a one year honeymoon rate. Variable and fixed rates are all low at the moment for deals that can be placed with banks. There is no one size fits all loan in commercial, you get very different products depending on what type of property, the amount and LVR, but the 4.99% rate is available across a fair cross…[Read more]

My view is that people should always pay down debt, the most expensive first. Non investment debt is generally more expensive because it is not tax deductible, so for most IO for investment debt is an absolute must. However i usually suggest IO for any and all debt where possible, this is not because I don't think paying down debt is a good thing,…[Read more]

Hi ML,

From what you have written it seems that there are a few misunderstandings in both directions. The banker would have to assess your current debt as well as the proposed new loan, as both are counted in the serviceability calculation. This doesn't mean any changes have to be made, but it is still part of the application. Your borrowing…[Read more]

Hi,

You have sufficient capital to invest in commercial property. If you are keen for positive cashflow you should have a decent look at this area, the cashflow is higher quality than that from resi property as generally the tenant pays for upkeep and expenses.

Even things such as non disclosure of a home phone number can adversely effect credit score, I know this definitely is the case with at least one lender. Credit scoring is weird and makes no rational sense, it's basically trying to come up with a statistical calculation to predict human behaviour, but its something we all have to concern ourselves…

Adam2011 wrote:
Hey all,

I have been considering US property investment but just can't be convinced it's a good idea long term.

Mainly because as most will know the US is broke.  And with all the money printing going on over there, this could potentially lead to a currency crisis.

What are everyone's thoughts on this?  When/if America goes…[Read more]

Hi Sam,

The benefit of NRAS is that it is tax advantaged. It doesn't make much sense to put it somewhere at a lower tax rate than what you are paying outside of super (assuming your marginal rate is greater than 15%) as this benefit is reduced.

I operate a small consortium in Bundaberg with 21 houses in it, there are a couple of consortium…[Read more]

Hi Kate, 

banks will most likely make their determination based on the use, but sometimes properties like this get through as residential if the lender doesn't order a full valuation. If it was vacant possession the lender would be able to accept it as a residential property if they discounted the cost of converting it back into a house. Unless…[Read more]

It's not rubbish, there used to be a few lenders that would except trust profit or loss  in their servicing calculator rather than placing the rent and interest expense or debt. This was helpful because most lenders only include a portion of rent and benchmark up interest. There are far fewer lenders post GFC that do this, but most commercial…[Read more]

Option 1 just doesn't make a lot of sense, there wouldn't be a cost difference, the problems are.

1. Why choose P&I this just sets a higher minimum repayment, if you choose IO you can still make principle reductions or achieve the same reduction in interest cost by using an offset.
2. You're maximizing the debt against your PPOR, while the risk…[Read more]

Hi David,

There are unlikely any taxation implications with however you structure your loans. I would suggest, however, that you should take out a loan for at least a large portion of the amount against the IP. You can get lower rates at lower LVR's with some lenders, so perhaps you don't want to go to the full 80%. There is no cost saving from…[Read more]

No problem Ben, There are quite a few things you need to consider. You tax position now is important, but also in the future. At the moment yields are relatively high compared to the cost of finance, so probably your property will be positively geared even if you max out the borrowing. As Terry mentioned you can access -ve gearing benefits by…[Read more]

Hi Ben, I would suggest you not do that. It is far easier to get a loan for a purchase than to access equity at a later date. You can always set up LOC's against the existing properties and pay the commercial loan down to $0 post settlement, there are plenty of loan options with free redraw. Commercial rates are not always more expensive anyway,…[Read more]

Hi Wendy,

You might find the below Youtube cartoon on Cross Collateralisation of interest, we created it for clients because most people do not understand why it is not a good thing.

susank wrote:
Hi Everyone,

Just wondering if anyone knows any good mortgage brokers in Sydney (happy to travel anywhere within the Sydney area).

My situation is that are looking to purchase a property and our broker has submitted our application to Macquarie however the bank said that due to our age (I am 59 and my husband is 62) we are both…[Read more]

Freckle wrote:

APerry wrote:

Whether real estate prices will rise or not is another argument.

So your original statement should have read;

"potential exchange rate losses will only be offset if asset values rise"

Quote:
If you can better describe what is happening in the US with regard to QE and its potential implications in 2 lines,…[Read more]