The ATO “Purpose Test” would apply and the interest charged against the additional borrowing would be Tax deductible.

In addition, any costs or charge associated in setting up the facility and the mortgage Stamp Duty would also become deductible albeit as a loan cost and deductible over 5 years or the term of the loan if shorter.

Whilst, it is…[Read more]

Cata,

Hate to contradict you but registration has nothing to do with your profit level.

Registration is required if your Annual Turnover is $50,000 or more or unless your Annual Turnover is less than $50,000 although you elect to register anyway.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from…[Read more]

You find the securitised lenders that offer NODOC loans are not very attractive on their Fixed rate loans but a LODOC loan you should be able to negotiate the same rate as a fully verified loan

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

It is actually claimable over 5 years or the Term of the Loan if this is shorter i.e for a 3 year interest only loan the premium is deductible over 3 years.

It is apportioned in the first year depending on when you purchased the property so assuming you settled on the 1st Jan only 50% of the premium would be deductible in that year and then 2…[Read more]

Hi Kiwi

I think the theory is correct but maybe the numbers are not.

Lenders will go upto 95% LVR of an existing property but will want to have the loan mortgage insured which will involve a 1 off premium deducted (sometimes capitalised) from the loan amount.

It is for this reason most investor try and keep the LVR to <80% to save on the…[Read more]

Stuart

My reference was not in that you couldn’t find a NoDoc lender with a sub 7% interest rate but merely from the Cannex website they didnt show Nodoc products which was part of the original post question.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

Totally agree with Stuart many of the deals we do are back with the client’s own Bank.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
richard@yourstatefinance.com
Ph: 07-3720 1888

I am with Adam with only 3 reposessions in 9 years and over 200 wraps later we must have done something right.

Underwrite your buyer properly and you won’t have any problem.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

Precisely

Is anyone aware of any lenders who will go lo doc no doc to 80 # without mortgage insurance and there rates.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
richard@yourstatefinance.com
Ph: 07-3720 1888

Simsey

Regretfully the lender you refer to charges a lot more than 6.94% for lodoc.

In addition, they charge an equalisation fee as the loan is not mortgage insured. For 95% you are paying >8.75%.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

ET

The difference is if you approach the Bank direct they will merely tell you what they can offer you and not whether you could do a whole lot better elsewhere.

A independant Broker can look at your whole situation and make recommendations to suit you now and in the future.

It costs nothing to get good independant advice so why wouldn’t…[Read more]

Paul

95% is readily available these days.

I have 2 forum clients 1 in the Uk and 1 in Malaysia who we have arranged loans to this level in the last 4 weeks both who were purchasing in Qld.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

Solomon

I successfully closed on over 64 loans in the US last year for both Australian and British Citizens purchasing in the USA and have significiant property interests there myself.

Feel free to ask away.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

Elka

Hate to put a dampner on your fiance’s ideas but i just agree why you would take a Honeymoon rate initially unless there was a reason for it.

With the 5 major lender and i assume that your fiance works for one when you say a popular Bank there is a early repayment penalty if the loan is repaid within the first 3 years. This makes the rate…[Read more]

Must admit i went on to Cannex Web Site and then clicked on the 2 main lenders that offer NODOC loans and there is no mention of the product on either site.

Difficult to now who to ring if you can’t find out the information in the first place.

Many lenders do not advetise the facility of NODOC lending it is just available.

Richard…[Read more]

Jason

Assume you are referring to a finance broker who has some idea about structure rather than a financial planner.

This day and age most deals are done across the internet so you dont have to sit down and take hours explaining what you want but can take your time put it together on email and send it around the Country.

As long as you use a…[Read more]

Hi Sue

Like Dazzling you are in an excellent position equity wise.

Many lenders however will take advatantage of an application for a Commercial Loan and charge a higher rate of interest and establishment fee.

Depending on what you are looking for from the investment and from the numbers you have given you should be able to borrow the full 100%…[Read more]

H & R

No not really 70 – 80% LVR is similar rate of interest, set up costs etc.

Some good deals around depends on so many other details.

If you can get away with Lodoc then you might save 0.5% and a few $$$ fees.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

Must admit Todd i couldn’t see any details on the NODOC loan on the Cannex website.

Sure i cam across a load of comparison information on interest rates but not product specific details as H&R was asking for.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial…[Read more]

As a Company we have always sourced our purchasers first and then let them find their own homes so this takes a lot of time out of property sourcing.

In regards to the on-going managment i guess as Paul states it depends on how many you have under Wrap. With still 160 properties owned by the Company I own we employ 2 full time ladies to deal with…[Read more]