Forum Replies Created
Really 75% lvr on a Com security under $250K you learn something new every day of the week.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Ian Yes have a couple of lenders in mind who would look at the deal.
Must admit you have lost me on the LOC comment unless you are looking at funding the deal to your SMSF yourself and not looking for external funding.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes as long as the security is acceptable you should be able to get 70% lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Michael my sentiments exactly.
Hardly call Resimac competitive when it comes to interest rates and well who knows who will be owning your loan in 6 months time. Could well be a German Superannuation Fund or a Bank of Mellon Investor the list is endless.
Remember the flight to safety after the GFC well the same is true now.
And dont let your Broker tell you they are owned by Westpac because that clearly is not true.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi both
Firstly welcome to the forum and hope you enjoy your time with us.
Always good to see some fellow Brits on board.For standard retail office security you should be able to get upto a maximum 70% lvr with certain SMSF lenders however you are right 50-65% is the norm.
The proceedure you are suggesting about your wife's company renting the premises off the SMSF is fairly standard and as long as the rent is deemed the market rent should have no issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi both
Depending on the type of Commercial security you might be able to go to 70% lvr.
Also there is no legislative requirement what percentage you can as long as the Investment strategy drawn up by the Trustees does not stipulate such.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Taylor
I have just emailed you the article as requested.
Sorry Jameswood just read your post.
Financing in the US is something we were doing a lot of up until 3 years ago when all of the US lenders we were dealing with went belly up (I.e World Savings, WAMU, Indy Mac, Countrywide).
I am from the UK and Yes you can get finance over there for Foreign Nationals depending on the property itself.
I returned in late October having spent nearly 3 months in the Uk sourcing and financing over 20 properties for some of my Australian clients.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Wade couple of things.
Firstly getting a high lvr on vacant land without the requirement of having to build on it within a set period of time (i.e 12 months) might be hard than you think.
You cannot claim depreciation on the land and claiming interest on the loan might prove harder than you think given that you dont have any immediate intention to actually build on the land and generate an income from it.
Still have to pay the Council Rates and possibly Land Tax depending on a couple of factors.
This is not to say dont buy and it will prove to be a good long term investment you just need to be aware of the costs.
I will of course assume you know that the site can be developed into what you are looking for.
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Yours in Finance
Richard Taylor | Australia's leading private lender
I think if i was only able to afford the monthly committment on a $150K property i would either look at bedding down and doing some serious saving (as i mentioned you wont be able to borrow a very high lvr against a inner city cbd apartment so will need a decent deposit) or altrnatively look at buying a regional property and rent it out for investment.
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Yours in Finance
Richard Taylor | Australia's leading private lender
May i ask how you know that $150-$180K is your limit ?
You certainly wont get anything much in Brisbane for that much.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Mimmo
You will not qualify for 2 x FHBG unless the property has separate Titles and you purchase one each.
Certainly you may qualify for the Stamp Duty concession as long as you meet the State requirements.
Whilst you can certainly owner build a property and claim the Grant you will need to have a decent deposit as 70-80% maximum lvr would be availble to a First Home Buyer Owner Builder.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Saqib
Hate top say i know the sort of property you are looking at in Brisbane CBD and think you will struggle to finance such a deal without a decent deposit.
I would be looking outside the CBD if you are looking for something with a bit of growth prospects.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Denis
Yes different in every State.
Regretfully Qld is not one of those.
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Yours in Finance
Richard Taylor | Australia's leading private lender
If you believe you will rent the property out then i think i would be taking a 90% lvr with 100% offset account as LMI is a loan cost and a deductible expense (Over 5 years or the term of the loan whichever is the lesser)
It is not all that bad and is an opportunity cost and if it means you can get into your own PPOR down the track i think i would be going that route.
With your income and deposit you certainly appear to have the capacity to buy another property so think i would be thinking about how to stretch out your deposit to maximise its effectiveness.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Tic
If you have put in an Offer i hope you have the SMSF Trust Deed all set up.
The Bare Trust will need to be noted on the Purchase Contract and finding a Solicitor open this time of year to prpeare the Trust is not going be to be easy especially if they want to accept your offer fairly quickly.
Lenders are still processing applications over Xmas but most are on skelton staff for the next couple of weeks.
We have a couple of settlements due on the 30th and not easy to get booked in.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No hate to say you do pay duty in Qld.
We do a fair few of them for a couple of Accounting firms in Brissie and the numbers often work fairly well.
Obviously with interest rates falling there is less of a benefit but still all depends on how long you intend to keep the property.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Kimberley if you are thinking of renting the current PPOR out and buying another PPOR then you certainly dont want to be paying down the principal on your mortgage.
Simple reason being is that the interest is Tax deductible when you rent the property out however for your own PPOR it is not.
What you would end up with is a IP (former PPOR) with no loan so nothing to deduct but rent coming in which is added to your Taxable income.You would then go and take out a new PPOR loan and be making the repayments with after Tax dollars.
You would have it the wrong way.
Switch the current PPOR loan to an interest only loan with 100% offset account so you save interest whilst you are living in the property and then when you are ready to move out decouple the offset account and link it to the new property and the interest on the entire debt on the new IP (old PPOR) becomes fully deductible.Hope this makes sense.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Michael is bang on with all of his points but if you skip from 1-10 and go straight to #11.
Ask his employer what structure they recommend for an investment?
Do they cross collateralise the securities of your PPOR and IP ?
If they say "Yes" – talk to a Broker.If they say "Sorry dont undrestand what you mean" – Be afraid be very afraid and then talk to a Broker.
They can offer you everything free but if the structure and set up isnt right it really boils down to nothing.
By the way 0.7% off the standard variable rate is par for the course and if you borrow more than $500K you should be getting a lot more than that.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
A line of credit a secured loan flexible loan facility similar to an overdraft which allows you to come and go as you like.
An effective structure for drawing deposits down and using them for your individual IP acqusitions.
Hope this makes sense.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You Accountant very likely is not Licensed to provide Credit Advice so no point in asking him to run the numbers for you on a loan restructure or new loan.
Only a Licensed Credit adviser / Mortgage Broker is authorised to provide this information.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
