Forum Replies Created
Hi Alex
Why dont you post the information here so we can all learn of where we can access our US Finance from?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks guys for your complimentary maiden posts.
I assume both of you hold your ACL's?
Can you tell me which lenders knowingly accept finance applications where the properties are to be onsold thru a Rent to Buy basis, Instalment Contract or even flipped.
I still stand by what i said (And trust me i have a fair amount of knowledge in the area of IC / RTB / LO / etc etc) that under NCPP you need to be Licensed and for most people this is something that is just not worth it going forward on a individual basis doing the odd deal here and there.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with Michael that your Broker or Banker would have to decline the deal based on this knowledge going forward.
Had a deal not so long ago where the client resigned and after Formal Approval the lender rang the employer to speak to the client only to be told he was no longer there. I knew nothing about the client's resignation and the Formal approval was withdrawn even though documents had been issued. The client lost their deposit although managed to get out of the Settlement.
Not wise course of action in my opinion.
Whilst you maybe keen to move forward it might end up coming at a cost.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
In the current climate "Goodluck".
There is no Australian lender that will take a US property as security although obviously if they have equity in their Australian properties that is a different story
We used to have dealing with 6-7 US Banks and successfully processed 101 applications but that was in the good old days.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Eh nope …. hate to say.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terry sorry bad use of words.
Was referring to the particular Accounting firm who claims their Trusts are "Special" to them.
You are right about the magical powers you cant access them until you have paid over you $$$$.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Remember to be able to offer Credit terms to a potential client you need to be Licensed for starters.
Also not too many lenders out there taking applications for clients who intend to wrap or onsell thru a Rent to buy scheme.
Steve McKnight had his own Wrap Pack for sale many years ago and whilst i believe it is out of print might be able to find one for sale on Ebay or similar at a fraction of the price.
For the cost of a seminar you can buy a lot of reading material and have buckets of change let over for the first deposit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Dr doom
Great in theory but i hate to say couple of points worth noting:
1) You will pay CGT on the partial sale but i guess that can factored in.
2) The investor will also need to be on the loan so will need to be happy to be Jointly & Severably liable for the entire debt.Good luck in finding someone who wants to take over your debt.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
r crawford whilst you might think that a Commercial property is the way to go in the current climate financing the deal is a lot higher than it used to be and probably maxing out at around 65% lvr depending on what it is.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Totally agree with you Michael but at the end of the day i am not doing WC Tax return lol.
All i would say is "Good Luck" and hope the ATO inspector is having a good day when he does the audit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with Terry any commercially written book usually refers you to a Commercial written Trust which they have the patent on.
Course financing a HDT in the current climate can also be interesting.
If you thought most Accountants dont fully understand them wait until you mention it to a Banker
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jessica you make a profit by buying well.
Assume the property was 100 Sq Metres then an estimate of construction cost would be $100,000.
To work our your Tax position you need to take the net sale price (after agents fees etc) of the 2 / 3 properties and deduct all of your expenses i.e land acqusition costs, construction etc etc.
This will hopefully give you a positive figure and you will pay Tax at your marginal rate.
If the project takes more than 12 months to complete there is a concessionary rate of CGT.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jessica
Ok well if the end goal is to sell and come out with a profit to buy your own PPOR then you need to factor in Tax and selling costs in your overall calculations.
Construction of a single storey duplex with a standard builder should come in a lot cheaper than $1000 / Sq metre however is a good guide especially if the block requires work or the local authority has additional costs.
Realistically you probably need a minimum of 10% deposit on the land and construction cost plus sufficient to cover your soft costs which cant be financed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi WC
Dont fancy your chances on that timing depending on who the PPOR loan is with.
Your new lender will not approve the finance until they have evidence of the deposit funds and you cant provide them with this until the existing lender has approved the increase loan.
Then you have documentation etc and have to settle.
As i say depending on who the current loan is with will determine on what can be done in what timeframe.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Cath whatever you do make sure you get a separate independant valuation to whatever the so called "Property Group" gives you.
Your Mortgage Broker can order this for you and if your Contract is subject to finance you always have an exit clause.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I would echo the fact that Andrew is a local boy and knows his stuff.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Concerning isnt it when your Bank Manager tells you that offset and redrawn are the same thing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi James
Wouldn't have an issue with either option however structure is more important to ensure you maximise your Tax deductions as well as increasing your cash flow and net wealth.
Personally i would go IO with 100% offset and if you have any question as to whether the property will be an IP in the future (even if it starts out as a PPOR) would look to maximise your borrowings and incur LMI if necessary.
Certainly from some of the valuations we are getting back from the Toowoomba market for other clients it seems to have improved a lot from earlier in the year and prices are certainly starting to creep up again.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
lifestylez, whilst you would miss out on the FHOG for the IP you would still qualify for it when you purchase your PPOR (Assuming it is still around)
There are other perfectly good reasons why you would buy an IP first.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If i may be so bold to go back to the original post made there are a couple of lenders i can think of who would take the total income into consideration rather than an assessed income made from the local valuer.
Course i can see the other side of the coin from the lenders perspective and that is when i reposess do i really want to be dealling with the 4 separate Tenants.
You cant blame them as it does happen.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
