Forum Replies Created
Apologies, didn't realize there was more comments to read after the first two
Well done Jamie, nothing like turning a bad situation around for the good of all concerned.
Fine dining indeed.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Why has he gone to Liberty as they are generally a lender of last resort?
Have you been declined elsewhere?
Has he tried any other banks?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Without knowing the specific dynamics of your financial situation inclusive of future goals both short medium and long term have you considered purchasing the IP at 90% or even 95% therefore preserving capital for the next purchase?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Brazen wrote:IAs far as university accommodation goes, this is an excellent idea. Check this design out for students: http://www.grannyflatapprovals.com.au/granny-flat-designs/3-bedroom/The Student design here is getting the owner around $800 per week. It's near a university in Sydney.
Brazen.
Hi Brazen,
That looked fantastic .What is the total cost to get that "on the ground"?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
starsoid wrote:We've got 40K in savings, and are adding to that at approx 1-2K per month.We also want to start a business in the next couple of years, which will involve approx 20K of capital investment. This business would be in a different location to where we're living now, so would also involve a move to a regional area. We'd like to keep our current place (inner city apartment) to rent out as an investement.
But after that, we're not sure what the next step should be to help us get closer to our goal. Should we keep saving so we can buy our next PPOR in a year or so and then rent out our current place as the investment property?
I think we probably need to go see a financial planner or someone similar. I'd really like to map out a couple of scenarios so we're in a good position to be able to make the best decision for our future.
Any advice or suggestions would be most welcome! Thanks in advance.
First step would be to go interest only on your PPOR with a linked offset. Place ALL savings in the offset as well as salarys and any other form of income . In fact any $$$ you have should be consolidated into the offset account. Get the RIGHT broker to help you do this.
Seeing the RIGHT financial planner could be helpful. Many are not pro property and many don't understand lending structures, from my experience.
All the best with your journey.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
kirbonavich wrote:Currently I only own 1 investment property and live with the in laws (it's a big house so its bearable). It is more cost effective for my partner and I to buy another property or two in the near future and providing that they aren't all untenanted at the same time, for a prolonged period of time we will be able to service to loans and redraw for our own home at a later date..That's the plan anyway.
If you are going to buy your own place one day in the future then it is advisable to go interest only with an offset account and save the difference that you would normally pay towards the principal amount.
Two major reasons for this is;
1. You preserve the principal loan amount for max tax deductions.
2. The funds being amassed in the offset can be used as a deposit on a PPOR when you are ready to purchase.
Without knowing your overall financial position, it would likely be better for you to have an offset connected to you IP mortgage with interest only repayments and your salaries plus rent going into the offset account plus any other spare dollar you have lying around, unless you can get a better return than the current mortgage rate, taking into account you will be paying tax on any earnings.
If you decide to sell your IP to help buy your future PPOR then no harm done BUT if you hold onto your IP (recommended) then you will have preserved the principal loan amount and also saved the difference plus any other funds added from salary etc whilst offsetting the IP.
If you have paid the IP loan down then draw the loan up for a PPOR purchase as you suggested then it wont be tax deductible as the "purpose of funds" is for non tax deductible debt being your PPOR.
So its not dribble but a smart and efficient strategy on how to best manage your finances whilst also potentially minimising the tax you are paying .
Sit down with the RIGHT broker and get them to go over this with you as you are doing yourself a disservice if you don't.
Cheers.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
kirbonavich wrote:Currently I only own 1 investment property and live with the in laws (it's a big house so its bearable). It is more cost effective for my partner and I to buy another property or two in the near future and providing that they aren't all untenanted at the same time, for a prolonged period of time we will be able to service to loans and redraw for our own home at a later date..That's the plan anyway.
If you are going to buy your own place one day in the future then it is advisable to go interest only with an offset account and save the difference that you would normally pay towards the principal amount.
Two major reasons for this is;
1. You preserve the principal loan amount for max tax deductions.
2. The funds being amassed in the offset can be used as a deposit on a PPOR when you are ready to purchase.
Without knowing your overall financial position, it would likely be better for you to have an offset connected to you IP mortgage with interest only repayments and your salaries plus rent going into the offset account plus any other spare dollar you have lying around, unless you can get a better return than the current mortgage rate, taking into account you will be paying tax on any earnings.
If you decide to sell your IP to help buy your future PPOR then no harm done BUT if you hold onto your IP (recommended) then you will have preserved the principal loan amount and also saved the difference plus any other funds added from salary etc whilst offsetting the IP.
If you have paid the IP loan down then draw the loan up for a PPOR purchase as you suggested then it wont be tax deductible as the "purpose of funds" is for non tax deductible debt being your PPOR.
So its not dribble but a smart and efficient strategy on how to best manage your finances whilst also potentially minimising the tax you are paying .
Sit down with the RIGHT broker and get them to go over this with you as you are doing yourself a disservice if you don't.
Cheers.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
kirbonavich wrote:It is interest and principle. I don't believe in the interest only dribble.LOL, thats an interesting way of putting it.
Do you ever intend to own or already own your own property to live in aka PPOR?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Have some friends of friends who recently purchased a property through Members Alliance. I had never heard of them until they mentioned it. I decided to do some research and after a few minutes came across this thread and many other sites with what would you say, negative press!
Would be interested to see the finance structure as well as valuation of the property they bought. I am curious if they would have received a copy of the valuation?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Hi David,
Is your IP loan on interest only or principal & interest payments?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
