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Richard Taylor

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  • Yes and no.

    Normally depending on the security lenders will take between 60-70% of the Gross rent so that will be added to your income for servicing but the downside being most Commercial loans are done over a 15 year term (odd exception) so the monthly repayments of principal & interest and the higher interest usually associated with Commercial…[Read more]

  • Yes in Australia lenders service your loan at 7.25% on a principal & interest basis irrespective of the actual interest rate you are being charged and usually a fairly constant expense for assessing your monthly living allowance. In the UK it is totally different formula.

    I think the Honeymoon products are a great way to get started and to start…[Read more]

  • Trouble is Coogee with my 30 years experience in the UK market you won’t find a lender to touch such securities especially if you are a non resident and not earning in GBP.

    We sold a number of excellent properties to forum members about 9 years ago with spectacular returns all of who have doubled their money but that was then and this is…[Read more]

  • Richard Taylor replied to the topic Where to Begin?? in the forum Help Needed! 3 weeks ago

    Or you could consider a Mortgage Trust with an income in excess of the standard rental yield and use the surplus funds to pay down any non deductible debt.

    With tightening lending standards we are seeing more and more clients follow this route of paying down down in readiness for a market softening and opportunities to rise again.

    Cheers

    Yours…[Read more]

  • Hi Jcam

    Not investing in the UK at the moment although I originate from the SE of England and have property over there.

    For an IP loan you will struggle to borrow more than 85% anyway so whether you go IO or not probably isn’t up for debate.

    Servicing in levels are more stringent than here in Australia even though interest rates are…[Read more]

  • Richard Taylor replied to the topic Some questions in the forum General Property 1 month ago

    Rather than contact individual lenders and run the risk of a series of credit hits contact a mortgage broker and get the best of both worlds.

    We Brokers can deal with a multitude of lenders offering finance and field daily email from prospective buyers wanting to get a guide on their borrowing capacity.

    Cheers

    Yours in Finance

  • Hi Minh

    Good on you in wanting to start your property investing journey as soon as possible.

    Certainly when I was younger than you I had purchased my first 4 IP’s but have to say that was the 80’s when it was easier to obtain finance and APRA was not controlling the financing scene.

    Realistically in 2017 you need a minimum of 10% of the…[Read more]

  • Richard Taylor replied to the topic advice needed in the forum Help Needed! 1 month ago

    Hard to comment Kevin without seeing your Partnership / Individual Tax Returns.

    Cheers

    Yours in Finance

  • Richard Taylor replied to the topic advice needed in the forum Help Needed! 1 month ago

    Not a lot you can do now and certainly 3.88% is not a bad rate.

    Just make sure structure the loan from now on correctly and you will be fine.

    Cheers

    Yours in Finance

  • Richard Taylor replied to the topic advice needed in the forum Help Needed! 1 month ago

    Hi Kevin

    Hate to say with a fixed rate loan most lenders won’t allow an offset account to be linked to it so probably not an option going forward.

    Not a fan on a LOC for a PPOR loan split as too easy to spend and a strong discipline is required.

    If you have equity then you could always look at mixing the investment between an investment…[Read more]

  • Richard Taylor replied to the topic advice needed in the forum Help Needed! 1 month ago

    Hi Kevin

    Hate to say with a fixed rate loan most lenders won’t allow an offset account to be linked to it so probably not an option going forward.

    Not a fan on a LOC for a PPOR loan split as too easy to spend and good discipline is required.

    If you have equity then you could always look at mixing the investment between an investment property…[Read more]

  • Another option is to look at alternative investment than property and try and pay down your non deductible home loan as quickly as possible.

    Funds borrowed for investment are Tax deductible so if the after tax return you can receive from an investment is greater than the net cost of funds then divert the surplus income to pay down your PPOR…[Read more]

  • Richard Taylor replied to the topic advice needed in the forum Help Needed! 1 month ago

    Hi Kevin

    Welcome to the forum and hope you enjoy your time with us.

    As the existing loan is a fixed rate loan and on the assumption the expiry date is well off you would probably look to take out the equity loan with your existing lender.

    With the equity you would use this to cover the deposit and your acquisition cost on your new investment…[Read more]

  • Richard Taylor replied to the topic advice needed in the forum Help Needed! 1 month ago

    Hi Kevin

    Welcome to the forum and hope you enjoy your time with us.

    As the existing loan is a fixed rate loan and on the assumption the expiry date is well off you would probably look to take out the equity loan with your existing lender.

    With the equity you would use this to cover the deposit and your acquisition cost on your new investment…[Read more]

  • Definitely put your surplus funds in an offset account linked to your PPOR loan split or straight into the loan itself by way of a principal reduction.

    You can then set up an equity split for the deposit etc secured against the PPOR.

    Yes it will benefit your borrowing capacity in the long run.

    Remember it likely if your IP loan is > 80% it will…[Read more]

  • Definitely put your surplus funds in an offset account linked to your PPOR loan split or straight into the loan itself by way of a principal reduction.

    You can then set up an equity split for the deposit etc secured against the PPOR.

    Remember it likely if your IP loan is > 80% it will have to principal & interest so why not maximise the…[Read more]

  • Hi Propertyboy

    Many more lenders than just the big 4 but certainly lending is tightening up by the day.

    Cheers

    Yours in Finance

  • Hi Propertyboy

    Many more lender than just the big 4 but certainly lending is tightening up by the day.

    Cheers

    Yours in Finance

  • No regretfully not there is no other choice but to buy in your own personal name.

    Cheers

    Yours in Finance

  • Terry makes a number of good points.

    We have seen dozens of borrowers who are unable to service for a new investment loan take a small equity loan on their own home / IP and invest in one of our Mortgage Trusts where they can get a Gross of Return of upto 9.09% Fixed with interest paid monthly.

    They invest in the name of the lowest Taxpayer and…[Read more]

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Richard Taylor

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