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  • Profile photo of Richard TaylorRichard Taylor
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    February 10, 2012 - 2:58 am

    Hi Pete

    We do around a deal a week on the SMSF lending at the mo.

    Yes SGB is extremely competitive but there are a few quirks you need to be wary of with them.

    In SMSF lending the interest rate / lvr are only a couple of things and ease of credit requirements can be the defining reason why you with a particular lender. 

    Bottom line is you need to know what you want and meet the product to match.

    Allow enough time as even with our Dragon connections mistakes can still be made on the lenders side (Trust me the average Branch manager knows very little about this area of complex lending.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 9, 2012 - 9:51 pm

    booge it is simple your Broker is acting on your behalf.

    If you dont want a fixed rate you tell him "I dont want to go fixed".
     
    If he argues any more dump him and ring Jamie.

    Cheers

    Yours in Finance 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 8, 2012 - 9:56 pm

    Cheeves

    Sorry you clearly dont understand Australian Credit legislation or the impact of NCCP.

    Yes we are financing in parts of the US and Yes we have so many enquiries it is unbelievable but at the moment because of the impact of NCCP we dont take applications from Australian based investors.

    We mainly focus on UK clients who pay our upfront fee and who provide what we need when we need it.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 8, 2012 - 5:34 am

    John and when you have found one vendor find a lender who will accept it in the current climate.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 8, 2012 - 2:46 am

    Citibank / Anz / AMP are 3 i would look at prior to UBank.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 8, 2012 - 1:27 am

    There are better 3 Year rates around than that if you want to go that route.

    Must admit i wouldnt go the UBank route.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 7, 2012 - 1:28 pm

    Hi adzlea

    I will answer from a Finance perspective and let others with more in depth knowledge on the area than me comment on the potential growth.

    It is a tricky one from a lenders perspective and will to a certain extent depend on the individual lender.

    Assuming that the security is a standard residential property and not part of a managed complex, pooled investment or similar you may get some lenders apply standard lvr to the deal.

    Others will work on between 50-70% of the potential rent and some will not allow any meaning you need to show sufficient evidence of serviceability from your external earnings.

    Sorry to be so vague but there are a few variables and without further hard data it is difficult to give you an exact answer.

    Cheers

    Yours in Finance 

    Richard Taylor | Australia's leading private lender

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    February 7, 2012 - 1:21 pm

    Johann

    Will post my answer here rather than reply to your email as I am a little flooded with emails at the moment.

    I am a great believer in starting a business, developing it and then getting others to run it for you whilst you collect the cash returns.

    Once it is clearly profitable package it up or franchise it and roll into another.

    Use the funds to pay down debt and increase cash flow further

    Worked well for me to date.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 7, 2012 - 12:36 pm

    Terry totally agree with you.

    The question of GST also offer arises on renovated properties and the "substantial renovation" wording is key.
    When is an existing property a new property = when substantial renovation takes place.

    Course the definition of "substantial" is an interesting one.

    Certainly a trap for new players and hence if in doubt obtain a PBR. 
    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 7, 2012 - 10:51 am

    Hi rider

    On a separate note financing a block of units on Company Title will be interesting.

    Can think of a couple of lenders but you will be limited to circa 70-75% lvr.

    Also remember when you come to sell the property potential buyers are also going to be restricted in what they can borrow.

    If this is not an issue then as long as everything else is A ok full steam ahead.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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    February 7, 2012 - 12:33 am

    Hi Melvin

    Yes got it an replied.

    Hope it makes sense if not give us a call.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 6, 2012 - 2:37 pm

    No Henry get your Broker to roll it over to another IO period.

    With the right lender it is a fairly simple process. With others it is a full application.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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    February 6, 2012 - 7:04 am

    Hi Melvin

    Sorry but i hate to say i think you are totally confused and will come a real cropper if you are not careful .

    If you use the redraw the interest will not be Tax deductible.

    The loans will be cross collateralised and you definately dont want this.

    I am just off to take my 17 year olds soccer training so have limited time but if you shoot an email i will show you how to set it up correctly so that the loans are fully Tax deductible and the offset account saves you money.

    By the way from what you have mentioned I would not be using NAB retail.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 6, 2012 - 5:25 am

    If you have non deductible debt on your PPOR then you dont want an offset account on your IP.

    Not sure which lender you are going thru but i wouldnt be paying for something i dont need.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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    February 6, 2012 - 1:07 am

    Hi Melvin

    Ok what i would suggest is get the lender to cancel the redraw on your PPOR and then take out a new loan split for the same $40K.
    This is to be an interest only loan and will have a separate account number and be easy to identify the interest.

    You can then use these funds as deposit for the new investment property.

    After all of this however just make sure you dont cross collateralise the loans.

    If you are using a separate lender there will be no issues.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 6, 2012 - 1:04 am

    Hi Melvin

    Ok what i would suggest is get the lender to cancel the redraw on your PPOR and then take out a new loan split for the same $40K.
    This is to be an interest only loan and will have a separate account number and be easy to identify the interest.

    You can then use these funds as deposit for the new investment property.

    After all of this however just make sure you dont cross collateralise the loans.

    If you are using a separate lender there will be no issues.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 5, 2012 - 11:02 am

    Reduce the repayment by switching to interest only.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 5, 2012 - 10:58 am

    New residential premises are subject to GST on their first sale. "New" means premises which have not previously been used a residence. New residential real estate can consist of subdivided land, a newly built house, a newly built apartment, and even a newly built house-boat. It makes no difference whether the developer of the new residential real estate is an owner occupier before sale – GST is payable on the sale including the first sale of new residential real estate.

    GST is calculated as 1/11 th of the Gross sale price of the property you sell.

    Purchasing the property under the margin scheme could have softened the blow.

    CGT is then payable on the profit made on the sale of the unit.
     
    Margin lookes healthly enough.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 5, 2012 - 10:17 am

    Hi Chris

    Yes the 44K subject to serviceability is available to be used.

    You can use 80% of the current or potential rent for serviceability.
    Remember though if the property is negatively geared you need to adjust your Taxable income to take this into account.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    February 5, 2012 - 10:07 am

    Hi Peach

    Yes whilst you may have purchased the property as Tenants in Common you will still be liable for his $155K.

    In regards to going forward Yes you can certainly take out 2 new loans in 3 names of $50K each and use this as a deposit for a new IP.

    As i said NOT every lender classifies you  as being jointly and severally for the entire debt.

    We do this regularly for clients.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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