Corey Batt replied to the topic Sale of a leashold motel -Go with a General authority OR an Exclusive Authority? in the forum Commercial Property 3 days, 21 hours ago
I would suggest exclusive over general – just like selling property you want the agent to be focussed on selling your asset, not half arsing it as they think there’s others selling it.
I know people in the game who specifically will not take general authority or if they do, will keep it on the backburner as they see it as barely worth the effort…[Read more]
Corey Batt replied to the topic HELP! Caught in negative gearing and refinancing strategy/trap in the forum Help Needed! 1 week, 3 days ago
I’m not sure based on the above scenario that the poster would have much luck with referencing the NCCP or FOS – their issue appears to be:
1. timing of property 2’s settlement being delayed which is limiting their ability to draw equity funds for purchases
2. lenders changing their policies for new loans after the initial were applied for (due…[Read more]
Corey Batt replied to the topic Why Negative gearing will not change in the forum General Property 1 week, 3 days ago
I do agree that I think it’s politically difficult to remove negative gearing any time soon and this would have unintended consequences for the greater market. In the medium to long term, having gearing quarantined to the property or the asset class would be a good balance, as it would disincentivise long term negative cash flow whilst still…[Read more]
Corey Batt replied to the topic Streaming income for Tax reasons in the forum Help Needed! 1 week, 3 days ago
Good pick up – you’re right there. :)
Corey Batt replied to the topic Where to invest in 2017 for first tme investors in the forum Help Needed! 1 week, 3 days ago
There’s also fairly regular Melbourne meetups listed here: https://www.propertychat.com.au/community/forums/networking-meetups.24/
Corey Batt replied to the topic Buying out JV Partner, should we do it? in the forum Help Needed! 1 week, 3 days ago
Barring personal emergency (fallen off a boat – this has literally happened to an Australian broker), that’s a little too long without returning phone/emails.
Good to hear that it’s definitely all approved and signed up however!
Corey Batt replied to the topic Buying out JV Partner, should we do it? in the forum Help Needed! 1 week, 4 days ago
That is very odd – in terms of the refinance was the loan actually approved and you’ve signed the loan offer documents detailing your new loan etc? Heard enough horror stories when subpar brokers have their loans declined and hide from the borrower as they don’t want to deliver the bad news.
In any case it’s unacceptable to not be able to get a…[Read more]
Corey Batt replied to the topic Streaming income for Tax reasons in the forum Help Needed! 1 week, 4 days ago
You can do it if you like, however the ATO isn’t silly and can see when things are a scheme primarily setup to reduce tax and will then deny the tax deductions for it.
This usually gets brought up when people come up with ideas to try reduce their tax with these kinds of setups:…[Read more]
Corey Batt replied to the topic HELP! Caught in negative gearing and refinancing strategy/trap in the forum Help Needed! 2 weeks ago
They’ve really done a number on your dads situation.
Speak with an investment focused mortgage broker – they will be able to determine whether theres any alternative option to drawing out the funds required to cover those remaining purchases, or if you need to go down another pathway.
Not a great situation, but life is full of challenges.
Corey Batt replied to the topic Interest coverage on commercial property purchases. in the forum Finance 3 weeks, 2 days ago
It is dependent on the lender and product – generally 80% is the norm for shading of rental income, though there are some lender products which accept 100% of commercial rent after outgoings factored. The article written above is an example of a lender which does this.
Corey Batt replied to the topic Any advice on investing in Hobart in 2017??? in the forum Help Needed! 3 weeks, 2 days ago
It all comes down to your goals and what you want the investment properties to achieve. If you’re looking for investments which will provide you with a higher yield – then Hobart is definitely a place to consider.
Corey Batt replied to the topic Any advice on investing in Hobart in 2017??? in the forum Help Needed! 3 weeks, 3 days ago
The market has been moving up there, yields are still a lot higher than the mainland but thats not surprising considering it’s a small regional area. Historically Tasmania generally jumps up considerably in short busts than stagnates for years, so be careful to not assume the growth will continue trending in any linear fashion.
YIP wrote about…[Read more]
Corey Batt replied to the topic Negative Gearing – Tax Question in the forum Legal & Accounting 3 weeks, 3 days ago
You won’t borrow 100% on the existing property – you need to retain some equity in there, ie 20% of the value if you want to avoid LMI so that would provide you with a maximum of $480,000.
In reality however you cannot claim tax deductions on this loan if it’s being used as a deposit for your new personal residence – as its not…[Read more]
Corey Batt replied to the topic Interest coverage on commercial property purchases. in the forum Finance 3 weeks, 3 days ago
Yes, generally they are stress tested at a higher rate.
There are some commercial products which are good in that they can disregard the rest of your financial picture which if you have significant existing debts can allow you to grow a portfolio considerably. I’ve written about this here:…[Read more]
Corey Batt replied to the topic Holiday villa versus "standard" unit in the forum General Property 3 weeks, 5 days ago
I’d rather avoid managed apartmnets/complexes like the plague. In general you’ll forfeit any/any reasonable chance at capital growth, hence why the yields are higher than norm. Likewise income growth over time can be stifled.
There’s very good reason why lenders don’t like to allow people to borrow for these ‘investments’, they’re generally duds…[Read more]
Corey Batt replied to the topic Bank serviceability. in the forum Finance 3 weeks, 5 days ago
Lenders have always stress tested new debt being applied for – which is currently hovering between 6.5-8.5% stress tested rates between the lenders. The big kicker is with existing debt which has seen the dramatic shifts in borrowing capacity. Quite a few lenders would previously treat existing debt repayments at the actual amount paid, however…[Read more]
Corey Batt replied to the topic Dividend income and franking credits in the forum Finance 3 weeks, 5 days ago
Generally they will want to see two years history of dividends being received evidenced via tax returns. Some lenders will also cap the amount of dividend income yield – deeming it only at a marginal amount.
Few options, but generally dividends aren’t big serviceability buffs compared to residential property rents or paying down non deductible debt.
Corey Batt replied to the topic Is this a Low Doc request or not? in the forum Finance 3 weeks, 5 days ago
If he legitimately makes $30k/yr net profit before tax in the business and have tax returns showing him receive this consistently, they may be eligible for a full doc loan. BAS/GST registration is not a requirement of full doc loans, unless they’re claiming they’re earning above the GST threshold but not registered. ;)
Best they speak with a…[Read more]
Corey Batt replied to the topic Any Tassie Investors here? in the forum Help Needed! 1 month ago
Not from Tasmania but have a few of our clients looking around there/who have bought there right now.
Not that big a place at all, but Invermay tops the list for most popular in terms of clients buying there consistently. Strong yields on aestethically quite ‘pretty’ timber clad homes around there.
Corey Batt replied to the topic Renovating Consultant in Adelaide in the forum Value Adding 1 month ago
For a non investment property you will struggle to find a professional who will be able to tell you the best bang for buck renovation ideas – as it’s generally either style or pure profit.
It is fairly simple to establish however – spend the money on what you like updating the property whilst also looking at what else is selling in the area. You…[Read more]
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