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May 14, 2008 - 5:53 am

Qlds007 wrote:

C & N are wonderful if you really want to be charged through the nose.

There are many other quality Accountants who will give you equally good advice for half the price. 

Richard, you seem to have few issues with Chan & Naylor don't you? That's a couple of negative comments you've made now. Do you have any particular issues you'd like to raise?

Iball, Feel free to email or call me and we can discuss how to best go about implementing the strategy you discussed with Chan & Naylor.

Cheers

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April 21, 2008 - 8:39 am

Hi Benderfile,
Your two questions can be dealt with seperately. There is no reason to wait on setting up your St G offset account until you've uncrossed your properties, or vice versa. Unless the tax deductibility of any of the accounts is not clear.

As Richard and Terry said, your money is better used offsetting your non-deductible loan with St George, than offsetting your dedutible loan at ANZ. St G have a good offset account with a small monthly fee.  

You've said that these are your St G loans

88k loan LOC variable

200k loan Portfolio

480k loan fixed

and that you have 3 properties crossed with St G. Are these 3 loans for your 3 properties or just for your owner occupied debt?
 This is an important distinction, as this will change what is tax deductible and what is not.

Feel free to discuss with us privately and we can  help clarify matters for you.

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April 9, 2008 - 2:42 am

Hi Lopetha,

I do want to add that even if you stay with the same lender, you may be charged LMI again if you upstamp 3 years after the loan originally settled. Different lenders sometimes have different policies on this, so do check you particular lender, or you may come up with an unexpected bill at settlement.

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April 9, 2008 - 2:39 am

Hi Pirate,

There is a number of things to check with your mortgage broker.
  – Ask for their membership certificate to the either of the Mortgage Brokers assosciations, most brokers are with MFAA, but some are also with FBAA.
 – You should check how many lenders they are accrediteted with. If there are only 2 or 3 , then these are the only lenders they can put your loans through. Most brokers will have around 30+ lenders to choose from, but always best to ensure they have they have at least the main banks etc.
  – Mortgage brokers usually now also hold a Certificate IV in Mortgage Broking or the equivalent, so good to ask for also.
 – If you're located in WA, also ensure that your broker is licensed to operate in WA (WA are a bit more special than the rest of the country… )

In regards to choosing your mortgage broker, do shop around. Make sure the broker you choose is someone you feel you can trust and someone you're comfortable with. Referrals from family and friends who have had good experiences with a broker are  invaluable.

Good Luck!

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April 3, 2008 - 5:14 am

I'm sorry Richard, I didn't make myself clear…
when I said..
You can set up your trust whenever you like, as long as it is all completely set up before you exchange on your IP

I did mean that the trust must be completely set up, signed, dated and (when not in QLD) stamped before the date you exchange on your IP. In QLD you can be forced to pay double stamp duty. In other states it  will mean that the the property cannot be put in the trust at all.  
 

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April 1, 2008 - 4:28 am

Hey Lefthander07,
I'd suggest getting some advice from an accountant or a financial planner regarding the trusts. There are a lot of differences between types of trusts, and so the right trust for you will vary depending on your situation, and even your state.
As a mortgage broker, I can tell you how to arrange your loan with a trust, but not what trust is best for you.
You can set up your trust whenever you like, as long as it is all completely set up before you exchange on your IP purchase, but as Terry mentioned,  depending on the trust, there may be some ongoing management costs etc to be aware of

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March 18, 2008 - 7:46 am

Hey Wayne,
In your circumstances, you may well have some difficulty getting finance. As the other guys mentioned, lenders will generally want to see 2 years business tax returns before they will lend to you on a full doc loan. They will sometimes make exceptions if you have moved to self employed in the same industry that you were previously employed in, but I got the impression that you've switched career paths entirely. 

You may find it possible to do a Lo Doc loan, but ensure your MB checks that your situation is acceptable to the lender. Alternatively,  as Terry suggested, have a look at No Doc Loans. 

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March 14, 2008 - 6:08 am

Hey Mixedup,
This is a bit of a complex question. Essentially, you are right when you say that the bank could change the interest rate at any time. And the best rate today is probably not going to be the best rate tomorrow.
 
The comparison rate of a lender is a good start. This is a rate that takes the current interest rate and combines it with any monthly or annual fees that would be charged and shows it as a interest rate. If you want to compare the real ongoing cost of different loans this is a good comparison tool. 

If you're interested in looking at the long term interest rates, it's prob also best to avoid loans that have a 'special rate' being advertised. You want a loan that will start low and stay low, rather than start well and go high later on. 

In saying all this tho, I will say (as a gross generalisation) that the big banks generally have the best rates, and that  they are less likely to bite you with a big rate rise later. They're also more stable than some of the smaller lenders at the moment. And, in the current market, that can only reflect positively on your interest rate.

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March 14, 2008 - 5:52 am

Hey Scottybe,
You should definently seperate out your accounts into personal use and investment use. You may not have to refinance to achieve this tho. You can quite likely go back to your existing lenders and ask them to set up a split for you. Your accountant can then claim the tax deduction for the investment split from that date forward.

As to the questions about trusts.. What's that ad? Oils ain't oils? The same with trusts. Some trusts don't provide the asset protection qualities you're asking about. Do you know the difference betwen them? Neither do I  but that's why you go to the experts. I'd suggest Chan & Naylor as well. There are probably others out there who know what they're doing too, but I KNOW that Chan & Naylor know what they're doing regarding the trusts.

Richard, we appreciate your concern about customers asking an accountant for advice regarding loans. As you suggest, an accountant is an accountant, and such advice is best coming from a mortgage broker, or other lending professional.  Chan & Naylor do work closely with Chan & Naylor Finance, a mortgage broker company, so please lay your fears to rest on that score.