Forum Replies Created
Hi Sundance
Not sure which part of Brissie you are in?
Drop me an email and i can send you a copy of an article the API magazine did on myself and wife and our Brisbane property portfolio which we have built up over the last 14 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
That is not the case however loans we do in Atlanta are done as second homes and not as investment properties therefore the applicant cannot already own a property in the USA.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Nice to see you back Jet.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry that is incorrect you can negative gear your US property income and can also claim Depreciation on the property in your Australian Tax Return.
You dont need a a US Accountant if you can find a Australian based Accountant who is licensed by the IRS.
If you email me i can give you details or our US Company Accountant we use for all of our Australian clients buying in the US.
Based in Melbourne and fully licensed to lodge US Tax Returns.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
DKB the other reason they recommend an umbrella structure is that it is very difficult for you to get out when you are so they receive a trail commission on your loans even if they are not working correctly for you.
Nice little stich up if you can get away with it.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes no issues but only done as second home cant own a property in USA.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Pleasure
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Yours in Finance
Richard Taylor | Australia's leading private lender
Cheeves
There are over 60 members on this site who have benefited from my assistance in arranging US finance and well over a 100 in the UK who have been introduced through some of the big US property organisations based over there.
We dont seek out clients as they come to us in droves due to my repuation on this forum.
I have posted guidelines on a number of occassions over the last 11 years but will do it again in case you missed it.
70-75% lvr / SFD / Min Loan $50K dependant on property location. Rates from 4.75% fixed no prepayments.
Anyway hope that keeps you happy for the time being. Got to go as i am hold to a lender.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Clare at SGB is a really nice lady but unfortunately she has NO credit authority.
The Dragon now uses a full Credit Scoring model and it can be descibed as poor at best.
In regards to Anz they are back to 95% lvr as long as you have held a qualifying account with them for the last 6 months.
This includes a Credit card, personal loan or mortgage.I know which one i would choose if i had a choice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I will only comment on the ones i can answer:
3) Yes you can open a Bank account without a Visa although under the Patriot Act you will need to be in the Country for most Bank's. CBA US / HSBC are the exceptions.
5) Yes finance is available to FN's and we are starting to get enquiries all day long from Aussies. We have been dealing in the FN market for some years however thanks to the introduction of NCCP here is Australia were only taking applications from our British clients. With clarification over NCCP we are now closing deal after deal for Australian clients.
Finance is however limited to particular states, minimum loan sizes, lvr's etc and individual properties so does take time to set up.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
AALLI you might need 3 or 4 prior to finance approval.
As to what is considered a good financial position this will depend on a lot of things age,residency history, income, assets v liabilities and a raft of ratios lenders use.
Alistair (APerry) is based in Melbourne so might be worth giving him a call and seeing if he things it is a doable deal.
If he says NO then pretty that is your answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
At 5 Units it is more than likely to be considered as a Commercial lend as you have suggested with a maximum lvr of circa 70%.
Lenders will only lend against current value (assuming you are purchasing an existing block of unit) or a combination of cost / end value if you are buying land and constructing.
Either way your own Statement of Position will be important and limit assets will go against you.
Even assuming you have limited personal debt / no mortgage etc $65K PA x 2 is not much to service such a debt.
Any loan where interest is to be capitalised will need to have the interest factored into the lvr i.e if interest accounts for say 5% of the project over 6 months the lvr will be reduced by 5%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Michael
The No part was relating to some case law Terry posted up recently and my Accountant was discussing with me where one party had been used merely to support serviceability. The ATO had argued that without their income the loan would have not gone ahead and therefore want the income / expenses apportioned accordingly.
As i say i didnt read the full background to the case but in essence my understanding has always been as you have stated.
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Yours in Finance
Richard Taylor | Australia's leading private lender
I will let Terry list the past case law but simple answer is Yes and No lol
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ghorvath
Ok no unfortunately Westpac are not one of those lenders which allow you to order upfront valuations.
No real difference between an equity loan and an a LOC other than cost.
One is a revolving facility and the other is a Term loan.
You could get the same end result with an equity loan however some lenders are not too keen on offering an equity loan where they cant control the end result of the funds.
By using 2 separate lenders you avoid cross collateralising the loans.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Whilst certainly they may be good in finding you a suitable property their recommend loan structures are totally wrong.
They normally recommend a single umbrella style loan with St George with all of the loans and properties cross collateralised.
This can severally limit a clients ability to move forward.
I have dozens of forum clients who have been caught like this and asked us to untangle the mess Destiny have made of their loan structures.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ghorvath
Firstle welcome to the forum and I hope you enjoy your time with us.
As Jamie has mentioned an interest equity loan would probably be preferable to an LOC as it will be cheaper for you (subject to who your current PPOR loan is with).
The way we structure most forum clients investment loans is to work backwards.
Assume you wish to purchase a new IP for say $300,000 you would look for a standalone investment loan secured against this property for 80% i.e $240K.
You know need to find the balance of purchase price being $60K plus acqusition costs say $15K and renovation costs say $25K.
Total amount required would be $100,000.
You would secure this by way of an equity loan against your PPOR.
Subject to which lender your current PPOR loan is with will determine whether your Broker can organise an upfront valuation for you to ascertain the available equity.
Based on these figures both loans would be less than 80% and not incur LMI.
If the PPOR value is less than expected we normally recommend you increase the loan secured on the IP as the LMI will be treated as a loan cost and deductible over 5 years or the term of the loan (whichever is the lesser).
Hope this makes sense.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Coxy
As Jamie has mentioned subject valuation you have a wee bit of equity up your sleeve so ideally you would tap into this to access the deposit.
In saying this in order to avoid cross collateralising the 2 loans you need to structure them correctly.
Subject to with whom the current PPOR loan is with will determine whether your Broker can organise an upfront valuation for you to ascertain the exact amount of equity.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jake
You mention you are waiting to hear from your lender this week whether your application has been successful.
I hope for your sake it is and that you have told your lender you want to go IO with 100% offset.
Reason being at a 95% lvr any variation to the loan will require another credit search and too many of these will fry your credit score.
Really your Broker should had the structure all sorted out for you prior to lodging the application.
You also need to make sure your lender doesnt have a problem with you renovating the property and then trying to access the equity as i can think of many a lender that wont be too keen on such a strategy and may require minimum timeframe.
Other issues may come with the fact that the lender doesnt want to redo a valuation in such a short period of time.
As i say without hard data hard to say whether the structure you have set up is right or wrong.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Andy funy hs the finance market has changed.
This day and age casual income is not a problem subject to regularity yet no chance on a Scholarship.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
