Hi Liam

Dont think you are fully understanding the transaction.

You as the original purchaser pay Stamp Duty based on your purchase price and then your purchaser pays his or her duty at their applicable rate based on the purchase price of the installment contract (they maybe entitled to FHB concessions / Grants etc.

Cheers

Yours in Finance

Sorry Matt that clearly isnt correct as you most certainly can construct in a SMSF. I have 1, 2 or more properties which i own in my SMSF apart from properties i own personally and i have constructed Strata Tilted, developed etc all of which is perfectly legal if the Trust Deed allows. What you cannot do is be seen to be running a business.…[Read more]

Agree Jac there are only 12 or 13 players in the SMSF market and most of them charge like they were processing a Commercial loan with the attached fees and charges.

I can think of maybe 3 lenders I would look at for a SMSF loan and would steer well clear of the rest and this covers the Big 4 Banks.

Course Jac you got special discounted rates and…[Read more]

If you earn less than 48k then it probably isn’t that relative as you wouldn’t be borrowing much anyway.

Cheers

Yours in Finance

Matt no doesn’t quite work like that.

If the property is held in Trust the Trust would want to distribute the profit otherwise it is Taxed at the highest marginal rate.

Certainly if it had non working beneficiaries the Trustees could consider making paying them a distribution however still not going to get around the $20,450 figure Terry…[Read more]

Hi Rachela

Got your email and responded accordingly.

Have to say your Accountant is correct and would listen to him every time over your Bank,
The way forward is a split loan using the current property as security merely to fund a 20% deposit and sufficient to cover acquisition costs.

The new loan on the new PPOR should be kept separate without…[Read more]

Hi bFree2live

Good for you on early retirement. I did the same thing at 40 thru rental income but have to say after 6 months had to go back to work as I was totally bored so started up my boutique mortgage brokerage.

If you want to shoot me an email I can send you an Ebook I wrote earlier in the year on SMSF’s.

I am in Canada on holiday but…[Read more]

Hi Soloman
Yes on holiday in Jasper, Canada,
Only have to breath on the IPad in the Mountain air and you end up posting a dozen times.

That and of course I am trying to get my posts up lol.

Cheers

Yours in Finance

Pleasure Miss Jay.

Nice part of the world Newcastle, my wife was born and bred in Merewether.

Regards

Yours in Finance

The second question is why would you pay cash for the property when you gear and depending on the amount concerned buy a couple of properties within the SMSF.

Cheers

Yours in Finance

Sundance don’t worry CBA have told us they have a fully transactional offset coming soon. Trouble is they told us that 5 years ago.

No issue with what you are doing but boys it is complicated and old fashioned with CBA.

Cheers

Yours in Finance

Yes Jamie like every Broker now who they are but you wouldn’t expect him to set them out in a public forum.

Like a magician showing you how he performs a card trick.

Safe to say they are big major lenders with a leaning towards investors.

Cheers

Yours in Finance

As Michael what is huge?

It all depends on your starting salary what you want to borrow, how much deposit you have etc etc.

Cheers

Yours in Finance

Certainly two of the lenders you have mentioned are available to Brokers but whether a Broker would ever have them on their panel is a different matter.

As Jamie has mention some lenders welcome investor loans and others don’t.
That is not to say they don’t offer them just that they are not competitive overall in terms of Credit Policy.

If you…[Read more]

Hi Renel
By utilizing the offset account your net interest repayments are the same whether you take an interest only or principal & interest loan.

As Jamie mentioned if you think you won’t be buying a PPOR anytime soon then yes a P& I maybe the way to go.
It is something I will be covering on my Investor nights I will be hosting around Australia…[Read more]

Wip must admit 5 times was a bit much but Internet connection in Whisler Canada is not the best and the iPad isn’t adjusting to Mountain time.

I know the product you are referring to but won’t help Miss Jay unfortunately.

Cheers

Yours in Finance

Jamie

It is 5.15am here in Vancouver and I have been up for 3 hours.
With Jetlag like this I would never make a Pilot.

Anyway off to the Rocky Mountains in an hour or so and limited Internet access up in Banff and Whistler.

My wife is very glad about that.

Cheers

Yours in Finance

Hi Miss Jay
Financing a property on a Casual wage can certainly be done but lenders will want to some consistancy of income so you are probably going to need 6 months work history. If you are in a similar field to when you were working full time then maybe less.

In regards to maximum borrowing you are probably going to be limited to circa…[Read more]

Hi Ron
Hate to say I disagree with your Accountant.

The Security Custodian Trust has to be established prior to signing the Contract on ALL occasions.

Cheers

Yours in Finance

Jim’s they can be located anywhere.

I am currently on holiday in Alaska / Canada and processing an application for a forum client in Regional Victoria.

Even when I am back home in Brisbane I have clients all over Australia and expat clients all over the Workd.

Most quality Brokers would be the same.

Cheers

Yours in Finance