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Just go onto Real Estate and put in your price limit and the State you want to look at first. You’ll get a huge amount of hits. (ie when I put in <500k in SA, theres 19,458 properties listed)
Otherwise you can use the invest tab and use the heat map to narrow down specific suburbs OR the neighbourhoods section to shortlist suburbs by median. There’s a LOT of suburbs however so it may be too much data to be of value to search in that manner.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Seeing the title I was going to come into the thread to recommend Simon Loo – but I can see he has beaten me to the punch in responding to the thread.
I’ve had clients work with him and be very happy with the results and know many others who have used his services. Well worth having a chat with Simon.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Sounds good Zen. Feel free to give me a call or flick me an email.
Unless you didn’t enjoy the finale for ninja warrior like a lot of people last night!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Bank repossessions (mortgagee sales) generally aren’t cheaper than normal prices – they have to demonstrate they’ve made all efforts to sell the property at market value otherwise the vendor can sue the bank for taking advantage of their situation and underselling the property.
You’ll find most banks because of this will run auctions for mortgagee sales so long as the market permits – otherwise they will have a set figure in mind which may well be well above what the property is even worth.
The little thin value in mortgagee repossessions can be when they’re in working class areas and potentially vandalised by the previous owners (for ‘revenge’ or the like), and there’s limited desire for locals to purchase the property or to buy at auction. In some cases these properties may go towards the cheaper end of their range, but even then if there’s enough keen investors around they will still go at market rates.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
And what happens if the block of land doesn’t go up at all, or even goes down?
Investment strategies usually look good on paper when you assume the asset will definitely increase in a short period of time!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
It completely depends on your total situation as to what you can afford – this comes down to borrowing capacity which Bank B appears to think you do not have sufficient capacity.
Speak with a broker who will be able to review your situation in depth across multiple lenders to find a solution which suits you. Offset accounts are pretty standard across a multitude of lenders so if one bank says no, there may be an option that a broker can provide.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Depends what you mean by full time investor? Most people who generate passive income from property generally consider that retired more than anything. There are those who also flip property full time (not very common long term in Australia due to it delivering poor returns after taxes, costs etc, and also full time developers which are a lot more common.
There’s a general trend that those who finally do ‘make it’ generally disappear off forums like this as they would rather be spending their time doing what they like, than talking about property! ;)
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Horses for courses – there isn’t one preference to any group of people. I prefer having a larger block (we live on 2700sqm), whilst I know many people older than my household which prefer smaller.
The whole point on focusing on land content with most investors has been either regarding buying future developable land, or buying land which appeals to the most groups – families, people with pets, people who like to have yard space which outweighs the group which can’t be bothered doing the garden.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Good luck getting council approval for change of use. If this is a functioning high rise you have zip all chance of getting this done – the odd time it does happen is when the entire building/most upper floors are all converted to residential which is a rarity except for conversions on old office buildings than anything new.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
You get a QS after a renovation is complete/post construction so they can generate a report for your accountant with the relevant claimable amounts.
The only exception to this is large development finance applications which require schedules done at the point of finance application to validate the costings.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Valluvan, If its only in your name you get the FHOG/NO STAMP
your wifes name for second PPOR then same applies if she has never owned the first PPOR.
Kind regards
Jaxon AveryHi Jaxon,
I am slightly confused now… are u saying both wife and I will qualify as first time buyers separately which means we can both buy our first properties separately and get 2 FGOG/Stamp duty benefits in total? I was under the impression only one FGOG/stamp duty exmeption applies for a couple who are buying their first property?You can only claim it once as a couple – if either party has received the grant before or owned property before they cannot claim the grant.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
thanks for that corey, yes I have got my terms confused, you are correct I was looking to use income earnt in england to service investments made in australia. Whats your thoughts on the above point raised about the trust being controlled by a trustee company that is overseas? I am a australian permenant resident but I am english if that makes any difference.
also you say your company deals with a lot of this kind of thing, what are the tax consequences of not being in australia to earn a salary yet making investments in australiaAs TerryW has noted – you really need to get specific tax advice from an accountant/lawyer specialised in expat taxation arrangements. Otherwise you’re likely to be going down a path because you think its right, not because it was necessarily the best pathway/path of least resistence.
As per overseas corp trustee – Australian lenders will definitely prefer to see an Australian Pty Ltd as the trustee over a foreign entity, so weigh this up in your decisions.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hey Valluvan.
I’d recommend a different strategy in terms of usage of your deposit. Instead use all of the cash funds as your deposit for your PPOR (principal place of residence) – then after settlement you could apply to release the equity back up to 80% LVR with a new investment equity release split. That way you’ve minimised the PPOR loan as much as possible, whilst having the equity available for you to be able to invest.
You get the best of both worlds. If you do this repeatedly as you come into further funds from saving etc – you can get your PPOR paid off at an accelerated rate and grow a portfolio at the same time.
This is the basic gist of debt recycling and a good investment focused finance broker can set this up for you with some of the better lenders in this space.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I think you’re muddling terms a little bit. Income isn’t about security for lenders – but serviceability. Security is the asset which the loan backs – the location of this the lender cares about.
Lets say you’re an Australian who moves to the UK and gets a job over there. You’ll be able to qualify for a loan in Australia for investment properties based on this income pending you meet all other requirements, affordability, deposits etc.
Our office works with a lot of expats over in the UK – whilst there are some restrictions for overseas borrowers – it just comes down to getting the right advice on the right lender, structure product etc.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
There’s a big wide world outside of the big 4 banks which have lenders with more generous lending policy. Keep in mind that the regulatory pressure from the government is continuing to constrict these options – it’s good to make use of the options there whilst they are still readily available and cost effective.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I have covered the sale to a trust in this thread with 2 or 3 variations:
https://www.propertyinvesting.com/topic/5037824-13-strategies-for-when-you-move-out-of-the-ppor-and-want-to-keep-it/
Listed is a link to a private binding ruling that I obtained for a client. You can click on that link and read how the strategy works and the ATO’s response – saying the interest was deductible and why.
My clients were able to transfer a fully paid off property worth $1.2mil to a unit trust and they personally were able to claim the full interest on the loan of $1.25mil even thought the proceeds, indirectly, ended up paying for their new main residence.^saves me explaining it more. ;)
Just to tidy up your questions a bit further:
Re; borrowing in a trust with ‘no income’ – the lenders don’t lend solely to the trust – they look at your personal financial situation and infer the income from that just the same as if you were purchasing in your personal name. (but looking at the tax treatment based on how the entity is held)
And there is NO inflated asset value – it’s based purely on what the asset is actually worth and lent again as per the original posters estimated value of the investment property.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Corey I am intrigued by your idea, but can you actually break down how this is financially and strategically smart?
you do not “need” a trust to pay down the PPOR
also the new purchase is PPOR so stamp duty wont be IP amounts either way?
So because of trust taxation law your stating their are more options for the trust operations stacked against named holder ofthe asset.
am I missing anything mate?I don’t think you quite got where I was going.
What could be done is:
*sell IP to trust – this would allow the poster to then reborrow for the property covering effectively the full purchase price and costs (ie lets pretend 630k – 105% of purchase price)
*OP then pays out existing loan and is left with 500k – these funds can be used to pay down the PPOR loan (and in reality would need to reborrow out the 20% + costs for the deposit component of the resale of the asset into the trustA trust (or another entity) would be required to sell the IP to something.
Not an overly complex strategy but one which slips a lot of peoples minds. It’s a strategy used by a lot of professionals in the property space to re-gear IP’s which are otherwise highly paid off, whilst having large amounts of owner occupied debt. (not a desirable outcome)
Likewise it allows the OP to keep their investment property if they believe it’s a good investment.
In the end its best the poster get specific advice on their situation by the relevant professionals so they can get something which fits their exact needs.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
From what the original poster wrote – it looks like they believe it wasn’t a wise decision for them to buy a negatively geared property which is eating into their cash flow each week – instead of buying a cashflow property which would increase their cash flow each week. (which could then be redirected into more investments).
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Why not have your cake and eat it?
You could otherwise sell the investment property into another structure (ie a trust), which would allow you to make use of the profit funds to pay down your PPOR.
More effective debt scenario in terms of balancing non-deductible vs deductible debt in your favour.
You will pay stamp duty on the purchase, but if its a great purchase and the fact you can releverage the investment debt whilst reducing the non-deductible debt it will likely pay off.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Or save up and pay cash for the holiday!
If you draw from a line of credit which is also used for investment uses – the purpose of funds will be polluted and cause a nightmare for your accountant to work out from a tax perspective.
If you have to borrow for the holiday – it’s best this is from a separate line of credit/loan account used solely for this purpose.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
