Forum Replies Created
Hi brmiau,
Be very careful and ask important questions before proceeding. First question would be the one highlighted by Benny, ask if your MB is planning to cross-securitise your loans.
You could potentially unlock $63,000 of equity from your own house which will be set up as a separate loan split from your home loan.
And then apply for another loan for your investment property. By doing it this way, you will not cross collaterise your house with your IP and then get max tax benefits due to the splits. Your accountant can work on your returns efficiently too with this as they are all separated.Regarding your plan on paying off your IP in 20 years, this is really not a good option for you as you will be reducing your tax deductible debt. Alternatively, you can set up an offset account and direct all income to that offset account which is linked to your home loan as this debt is non tax deductible. Parking it in an offset account will also give you access to this funds quickly for succeeding investment property purchase.
Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hey Michael,
After loan application, the file will be passed on to the credit assessors which will determine what type of valuation needs to be conducted.
Also, your broker can order a full valuation for you. You can also challenge the val if you really think that the valued price is incorrect. Just gather all the supporting documents to prove your proposed price. Have you checked the comparable sales around the area?PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Wiwin,
Median price and average market value is not the same. Be careful not to get confused there.
<moderator: delete advertising>Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Wiwin,
Just to add to Terry’s points, Trust can also be used by people on PAYG but in a high risk of litigation. Like people in the medical field.
To the OP,
Dave I hope you find these tips useful as well.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hi Kurtuk,
Just let us know how you go. If you have anymore questions don’t hesitate to come back here. Thanks!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hey Achimy,
To add to Richard’s points.
– look for someone your are comfortable with. People do things differently so once you have identified the “checklist” that you need in qualifying a member of your team, also look for people that you are comfortable talking to and someone that explains things to you in a way that you can clearly understand.PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Woops! Sorry Terry.
Kurtuk,
Apologies for the incorrect info there. All I’m trying to say is that Terry is awesome! :D
Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Kurtuk,
You questions and situation is all about tax. So get a property savvy tax accountant as mentioned above by Catalyst. A lawyer is needed if you require legal advices.
Let me tell you a secret… Terryw who just replied to you is a property investor, a tax accountant, a lawyer, and a finance person. I’ll definitely give him a call.
Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hi Stera,
No one can really tell when would be the “right time” to sell as there really is no guideline stating that your decision of selling now is wrong and selling in 12 months time is right. This is due to the reason that no one can predict the future. You can however refer to historical data and see the trend of the area where your property is located. This can tell you if the area has gone passed its peak and is now in the correction period. Or has just passed the low point and now in an upward swing. Research the current market status of your area, check auction results, number of properties sold over a certain period etc. Doing your research will help you decide when is the “right time” for you to sell. Determining how much profit you want in return can help with your decision making as well.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Thanks for sharing this info OS. :D
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Thanks for the info Scott No Mates, I was keeping an eye on this thread as well as I wanted to know the legislation or policies for this type of scenario.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hi Kurtuk,
What does your due diligence tell you?
Have you crunched the numbers for both scenarios?
Personally, I will diversify to two or three investment properties. Yes, more stamp duty, rates, bills but you factor all that before buying. You should have the numbers worked out already before buying. If worrying about multiple bills is the only factor limiting you to buy multiple properties, then I think you really need to get your mindset right. Having a diversified, quality properties is what you need. having said that, there is also no point having 10+ properties if you will struggle to hold it long term and has very minimal CG or under performing properties.-
This reply was modified 9 years, 5 months ago by
PHP.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
* 4 shares and each share puts in ‘X amount’ for deposit,(3 singles and 1 couple)*
This looks easy on paper. But wait till you enter a problem where one can’t repay his part for whatever reason, or 2 members wants out of the deal, etc etc. If you still want to proceed, contracts needs to be signed and every responsibility and “what-if” scenarios needs to be discussed before hand. A good lawyer is a must in this type of situation. A good legal advice at the start is your top priority.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hey Pati,
I agree with the general consensus.
Student apartments is a risky investment and generally does not give a very good return.
There are so many factors that needs to be considered. These variables adds to the risk level of the investment, with more variables to keep in mind, chances are, Murphy’s Law will do his work.PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Not a really good idea if you really are serious about property investing. Unless you have an established network and a really good relationship with the right people, then just invest here in Australia. Better returns and safer (not referring to investing, but a life and death type of safe) This may sound extreme but you can get killed easily over there if you mess up with someone with connections to politicians.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
i was curious as to why you don’t want to tap into your equity. was this advised by your old broker?
my only guess would be that you have probably calculated a negative cashflow if your current IP loans were to be topped up.PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
That is one amount that you will have paid for in the price, for sure.
Exactly!
Rental guarantee = alarm bells (very loud alarm bells)
Caveat Emptor.
Cheers!
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
“If you don’t ask, the answer will always be no.”
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Hi buddy fox,
Please tell us your two IPs are not crossed? If it is, you need to get this fixed ASAP before doing anything else.
20k savings is not enough for your target price range. Why don’t you want to use equity in your IPs?
The information provided is very limited for us to provide you with a much more accurate answer.I would focus on fixing the two x-colled properties first (if they are crossed) and at the same time structure your finances to your benefit. Using cash on your next purchase won’t give you maximum tax advantage too. Paying it to your current PPOR loan (if you have one) and then redrawing it again will get u great IP tax benefit due to increasing your tax deductible IP debt.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
Most of the brokers that post here is not affiliated to just one bank. There’s a big difference between Mobile Lenders who just works for one bank alone, and a mortgage broker who works for the client and has around 20+ lenders behind them and will surely recommend that right lender for your goal. It starts by assessing your situation and asking questions about what do you want to achieve short term, mid term and long term. Have a look around the forums and you’ll see some very knowledgeable brokers here.
Are you located in WA? Do you prefer face to face meeting? If your are fine with transactions over the phone, email, skype (which is very common now and the preferred method by many) then look around the forums.
To name a few:
Jamie Moore – ACT/Sydney
Corey Batt – Adelaide
Richard Taylor – Qld
Terry Waugh – SydneyLearned a lot from these wonderful people.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
Email Me | Phone MeGive us a call or send us an email for a free residex report.
-
This reply was modified 9 years, 5 months ago by
