Forum Replies Created
Hate to disagree but finance for the UK is extremely hard for Non residents.
I own property in the UK and have a number of UK Banking contacts.
The couple of lenders i know who will accept applications require to either have a UK resident / work visa or alternatively have a large minimum loan size.
Finance in Florida at 70% is faily achieveable with a minimum loan of $100K US
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ossi
Yes it does.
It both reduces your net Taxable income as well as representing a liability.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Let us know if you are still looking for a property accountant and i can recommend you to mine who is based on the Northern part of the Gold Coast.
He has acted for me for the last 15 years and deals with all of my property returns.
Forum member and also acts for litterally dozens of my forum member clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say NO.
The purpose of the redrawn funds / new loan is not for investment and therefore disqualifies the deductibility of the interest.
The security is immaterial as the purpose test has failed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Of course the bad news is that the interest on the redrawn funds will not be Tax deductible so the entire debt on the new property will be non deductible interest.
Had of course the loan been correctly structured by using a 100% offset account amount then it would have been different but from your comment this is not the case.
Net result will be that you will be adding the net rental income to your taxable income and not be able to claim any interest deduction.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Oz
Yes loosly speaking.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes you will need to have the property revalued to determine the available equity.
If you want me to email you an article i wrote on the very subject let me know and i can shoot it to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No unless you have some non deductible debt if you dont need the interest on your savings to live on i would be sticking it an offset account.
Make sure you give the Accountant all of the initial loan costs as these are deductible over 5 years or the term of the loan albeit proportionalised from the date you purchased the property.
Some deductions will be cash deductions others non cash deductions.
Probably wise to get a Quantity Surveyors report on the property to what else you can claim.Also remember being PAYG you dont have to wait until year end to claim back and shortfall as this can be done by way of a Tax variation forms 221D.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi there
I think i understand your post.
ASIC regulates the new regime of lending and you should check out their website to see what the requirements are for you obtaining your own ACL.
You are unlikely to find an ACL who is prepared to take you on as a Credit Representative merely so you can lend your own funds given the costs, supervision requirements and ongoing training and compliance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As an investor and developer myself we have done 1 or 20 deals around brissie and another bunch for clients over the last 17 years.
I am away on holiday at the moment so sure Marty's contact can point you in the right direction.
Few good lenders but is certainly getting harder to fund at sensible rates and prices.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Michael suggestion is a valid one although of course your Financial Adviser / Broker will not be recommending that route as they do not earn a cents now on insurances written thru Super.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tracey
Not enough soft data to make a structured answer but depending on the location of the property you might get 80% Lvr.
Certainly wouldnt be considered a strong deal although subject to A & L might get it over the line.
Yes it would make a difference if they are all strata titled subject to be able to split up the Contract into 2 parcels albeit simultanous settlements.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Chappy
Yes thats exactly what you need. Offset linked to the PPOR loan and you are home and hosed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There are still many lenders who will do upto 4 units presently and the odd who will do 6 all at residential rates.
Just depends on the overall strength of the deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Chappy is wrong.
There is a massive difference between putting funds into an offset account and directly into the loan with the intension of redrawing on them especially if the redrawn funds were to be used for investment.
Putting it simply do not do it as you will have contaminated the interest deduction.
Hi Blair yes the net effect is exactly the same the big difference is that you protect the loan when it comes to claiming the interest as a deduction.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As catalyst has mentioned you need to be Licensed to receive a fee for introducing a buyer to a property so first thing i would do is check what requirements are needed in your State.
From memory (and one of the Buyers Agents on the forum will correct if i am wrong) the idea was to ensure that there was uniform licensing across all States in the next year or so.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure is if the lenders valuer agrees with your current market valuation then you can borrow against this.
Remember the valuer is valuing a block of land with a DA on it only and nothing else.
If the valuation is an oncompletion valuation then sorry nothing you can do there until you start constructing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
We have stopped arranging pre-approvals for clients as they are really not worth the paper they are written.
In the current climate they are really only valid for 30-60 days max and in many cases lenders wont even do as credit search or assess the loan.
Of course if it requires mortgage insurance (and your loan would do so) the LMI policy and documentation requirements can change by the day so just because they say Yes today doesnt mean next week you will get the same answer.
Certainly with $35K you are going to have a few more lending options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I hate to put a dampner on your idea but with $25K you will pushing to buy much as you will need 5% deposit and unless you buy new or not previously occupied the Stamp duty is going to erode much of your deposit together with the LMI.
Whilst you can still just about get 95% lvr based on a $300K purchase price 5% alone would be $15K.
Doesnt leave much for the rest.
Secondly wouldnt be paying the loan down but placing the funds onto an offset account linked to the loan.
It saves you interest but doesnt contaminate the interest in case you decide you want to have back all of that overpayment for personal purposes such as a PPOR or other non deductible expense.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Time constraints restrict me from a full response but can i ask you are you really paying 8.3% on a home loan?
First thing i would be doing is negotiating the interest rate with your current lender.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
