Forum Replies Created
Hi Dean
Firstly welcome to the forum and I hope you enjoy your time with us.
Yes certainly Interest only with 100% offset is the ideal way to go subject to a couple of provisions.
Had an enquiry from a forum client only last week with the same question and when we looked at their likely disposable month income post expenses the amount available to save was minimal. With a loan under 250K the interest rate discount and the cost of the offset account didnt make it a viable strategy.
Away from this case Yes for most of our clients we recommend this structure as the way forward.
In regards to the maximum term you can have as an interest only loan then it is more than 5 Years and in fact regularly we do a 10 year term or even an evergreen loan for 25 years however will depend on a couple of points.
Further hard data would be required in order to provide a full structured response and recommendation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sundance implications of C/C can be considerable.
I am sure the CBA would have disclosed them to you.I am unsure why they did not loan against your own cash rather than your PPOR.
If you are close to retirement and will be in pension phase you might want to seek Accounting advice before deciding to sell any of your current properties.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Karen
That is like saying how long is a piece of string and without hard personal data it is impossible to provide a structured answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi figure
Firstly welcome to the forum and I hope you enjoy your time with us.
i am with Terry be very wary of any Professional who happens to share his office with an Accountant, FInancial planner etc. They spin you the yarn that whilst you are in here being sold one of their overprices properties they can get their in-house mortgage broker to help you and the Accountant can do up the Tax variation before you leave.
What you have to realise is they work together with a common goal and that is to make money out of you at every stage.
Look for someone indepentant with experience and has purchased the odd property or two.
As i responded to Razz's post earlier concerning Aussie you are normally dealing with someone who has very limited experience due to the Aussie model of engaging staff and franchisee's. (By the way halving your LMI is not quite right and like anything comes with a cost)
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry Derek why would you encourage Sundance to pay spare cash into his investment loan that doesnt sounds like a very Tax savy strategy to me.
Certainly the additional borrowed funds that were not taken up on Settlement should be paid into IP loan. These funds were surplus to requirements and therefore not Tax deductible if they have not been used.
Sundance do you have a PPOR loan ?If so i would set up the offset account against this loan. The CBA Misa offset account is not an ideal product going forward as it is not fully transactional but it is too late now.
More concerning would the way in which the loan was structured. Only way you can have borrowed more than the purchase price in one loan is to have cross collateralisd the 2 securities and i certainly wouldnt have recommend this course of action.
Hopefully your Banker advised you of the issues in doing this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wayne this broker seems to get better by the day !!!!!
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Honestly saw a client yesterday who had gone to Aussie the day before here in Brisbane for an investment loan.
The Aussie adviser told the clients that he only joined them in February after being a mechanic for 10 years and still had the oil stains on his fingers. He may prove to be a very successful Broker but to me if you were thinking of spending $400K or so on a property and when the Broker isnt even sure of what redraw means i am not sure he would fill me with confidence.
He told the clients that he thought they should refinance their existing fixed rate loan and because the total borrowing was over 750K he would get a more experienced colleague to come round and do the paperwork. (Probably an ex- electrician who had been there since Xmas).
I told them stay put with their existing lender as the loan is fixed and we are doing a top up for the deposit and acqusition costs.
Separate loan with a new lender for the balance of the purchase price.
Apparantly he phoned them last night and was stunned when they told him they had gone elsewhere.
Hopefully he only took extended leave from his Auto mechanic employer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Unfortunately you get what you get with Aussie.
Last week the adviser could be a plumber working on your dunnie the next week advising you on Trust structure loans.
Ask you adviser how many investment properties they own and see if that matches your investment goals.
Would you go to see a surgeon who had read the books, has done the course and watched the videos / other operations for a heart op.Each to their own.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Paulie without appearing rude but shouldn't this be something your Broker should be providing you information on.
If he is experienced in the SMSF space he will now exactly who to use.
You say he is going with CBA so i assume he feels they are the best lender for your circumstance.
Personally i wouldnt use either of the other 2 but thats me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Hank you are certainly are active on your own forum.
It is just such a shame that when an outside member joins your forum you obviously dont like the competition so you ban them like little children.
Thankfully here on PI investing Steve's website we are more mature and welcome accurate comments from outsiders as long as they dont join merely to advertise their services.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I agree give Jamie a buzz and get it sorted properly.
Think how much a mistake at your local Bank could cost you over the years when your Bank Manager has moved on and you are arguing about the loss of deductible interest to some spotty faced teenager.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mike
Yes that is correct and that is why they schedule to see him on both days they are here.
Alternatively even if you stay a second day the flight is still deductible but not the second day of leisure.
Been doing it for a year or two.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Nick
I think Liberty would be the last lender i can think of I would ever do a SMSF Commercial deal with.
Sure they have a place in the market but that is not one of them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There is no reason why you couldnt borrow 100% of the purchase price and offer your cash savings as collateral security.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ozlat
Yes indeed we deal with a couple of Credit repair companies and certainly depending on the depth of your issues could be an alternative.
Personally i have hundreds of forum client in Melbourne and other parts of OZ.
JacM is Melbourne based and she is a client.
Hope she doesnt mind me saying so as it is not like the exclusive Millionaire's only club lol.
Feel free to drop us an email and be happy to throw in my 5 pence worth.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Heh Jac big day today double settlement
28 days for finance you must have a good broker !!
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes sounds like it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Exactly as Terry stated.
I cant see why you wouldn't prepare the Construction contract for the actual amount and do the deal as an owner builder.
Might restrict your borrowing amount but at least you are not committing fraud by signing a contract at a higher figure with a view to increasing your loan amount.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The advent of the NCPP legislation has caused many Brokers to take this course of action as Terry has said due largely to increased compliance costs and reduced income.
Personally we dont charge any upfront brokerage fee but believe we are a dying breed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it is known as mortgage fraud
He also advised that contract should be for retail value of the build because that is the figure the valuers will use for lending purposes. The difference in actual build cost and contract value can then be used as a down payment at settlement. Does this sound feasible?
Not an ideal way to start you business unless you mate in finance wants to visit you on the inside.
God i love it when borrowers get this sort of advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
