Forum Replies Created
Hi George
Hate to say that the new era of Credit legislation puts emphasis solely on serviceability and responsible lending.
All lenders are covered by the same legislation so you are not going to get preference by contacting a non bank lender.
If your partner is in receipt of regular casual income then at a 50% lvr it might be possible with a couple of lenders but would need additional information to provide a more structured answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Might be slightly biased about the Gold Group as they are my Accountants.
One of the partners has been my Accountant for nearly 15 years and looks after my whole portfolio.I have recommend Steve to 101 forum clients and never heard a bad word back. Service is second to none.
In saying this they are very popular so not sure if they are still taking on new clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi TJ
You would be suprised a separate laundry is fairly common with many lenders.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
In short – NO you will not get 90% on a block of 7 non strata units.
You living in one or not has no bearing on the deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Josh
Would slightly disagree as if Johny buys them in his own name with next to nothing by way of income he wont have anything to claim anyway. If he buys them in his partners name then this could be different.
Remember any Capital Allowance that is claimed reduced the Cost Base down the track should the Asset be sold.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Josh
If Johhny buys the property in Trust he cannot claim the Depreciation anyway so buying an older property and renovating is not going to make any difference to his strategy as the idea is to generate income not Tax deductions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Cam as Michael has mentioned Lodoc is indeed alive and well post NCCP.
Difference is now you Broker has to make reasonable efforts to ensure that the loan can be supported by obtaining Bank statements, Accountants confirmation, BAS or other forms of evidence so he is fully complying with the terms of the legislation and repsonsible lending in general. This can be over and above anything the actual lender may ask for.
If the loan is done in your personal name even private lenders fall under the same legislation.
Like anything there are many ways to skin a can.
Just had a small development of 6 units approved only yesterday on Lodoc at $1M + so they are still around.
Bank West is not one of the lenders who will do it.
Refinance is of course a slightly difference story.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Might want to read up on the local crime statistics first.
Then talk to a couple of property managers and ask them how they find the area.
Personally i dont have any of my properties in Logan and dont intend to start but thankfully that is me and everyone is different.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Well the loan on your partners PPOR will need to be set up first and then maybe a pre-approval on the first IP (once you have decided which entity you will using)
As long as the Trust is set up prior to the Contracts being signed / exchanged you will be ok.
If you are wanting to set up a Discretionary Family Trust with you / you and your partner as Trustees most Accountants should be able to assist. I guess the difference between Accountants is a combination of cost, experience and expertise in purchasing property.
Like asking some mortgage brokers to set up an investment loan when they havent even paid of their own PPOR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Under the new Credit Act making an application for a loan and not declaring you are likely to be leaving this shortly would fail the Responsible Lending guidelines so that course of action is out the window.
A Property based Accountant would be able to set up a Trust for you and costs will depend on whether you have a personal or Corporate Trustee. Allow between $800 – $1800.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Lenders assess you as being jointly and severably liable for the entire loan but this does not determine your serviceability.
If you buy with another person lenders will add both of your incomes together and take both of your liabilities.
If you are unrelated you will be assessed as 2 single persons as far as the living allowance expense is concerned.Downside is that if you then decide to purchase with your wife or spouse you will with,most lenders only be able to have 50% of the rent from the property you own with your friend added to your income however 100% of the loan liability.
There are a few lenders with an exception to this rule.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Johny
Good to hear that your health problems are all sorted out.
You will want to be very careful in going forward as if you look to redraw the $180K from the PPOR loan then the interest will not be Tax deductible.
Also you not having an income will limit your progress in expanding your portfolio as you will be limited to your partners income and rent for serviceability.
The structure you would probably is a separate investment Line of Credit or similar secured against your partners PPOR from which you will draw the deposits, acqusition costs and renovations amounts from and then a standalone interest only loan secured against the individual investment property.
The entity you use will be dependant on a few things. If you are looking to buy in a Trust then you need to bear in mind that if the property is negatively geared any losses will stay within the Trust and cannot be claimed. Of course the upside if the property is positively geared is that the Trust can distribute 100% of the income to you and you will be assessed at your marginal Tax rate.
Whichever way you go your partner will need to be a party to any loan irrespective of the structure or entity as her income is the only income apart from potential rent that can be used to assess serviceability.
Your Broker should be able to guide you through what could be a complicated maize.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Keiko is correct with most lenders however i haver seen a couple of the smaller Credit Unions charge interest on a Quarterly rest rather than daily basis so will depend on who the loan is with.
Also many lenders work their offset differently so not to straight forward there.
And they wonder why clients get confused.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Emma
Good to hear the story and very happy for you.
Bank West are good like that and if they want to keep the business they like every lender are happy to bend a little.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Free
Have a read of my article in the Oct 2010 API magazine and it will tell you a bit about how i started my journey.
If you want it in PDF format shoot me an email and i will send it over to you.
Just cant attach it here.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Amanda
it is good to see that Brian has arrived in time to answer his first on NRAS and hopefully he will stick around to answer another 1000 more.
I have financed 101 NRAS properties and suggest you be very careful in the financing as in most cases we have found the valuations have come in less than the purchase price due to the marketing commissions which are paid to sell them.
This is not to say do not buy NRAS far from it but just your Mortgage Broker / Bank to commission a private valuation and understand the reasons why there maybe a price descrepancy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Shane
I get 30-40 enquiries a month from Australian Residents wanting to buy in the US for around that figure.
NCCP has stopped a lot of the lending to Australian as far as a Brokers perspective so at the moment i only deal with UK Citizens / Residents who dont fall under our Credit Legislation.
Hopefully we will shortly be launching our new 100% loan for french properties with good yields and will let the forum now once this happens.
In the meantime good luck.
Cheersd
Yours in Finance
Richard Taylor | Australia's leading private lender
Ok sorry Shane bit too low for lenders who deal with FN's.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have you considered selling the properties on an instalment basis or thru Rent to Buy basis.
Have a chat to Paul Dobson from the forum who assist form members do just that.
A search on past posts on "wraps' or instalment contracts" should bring up Paul's details.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rahrah
Sorry i hate to disagree with you but neither "Debt Assist" or indeed "My Budget" pay off your debts for you and charge you a fee.
They are not lenders and merely negotiate on your behalf a reduction in the payments / interest rate / debt balance for which they charge a fee. They certainly do not "Pay Off" your debt as i said to Justin in my initial response.
Unfortunately misleading responses given posters false hope.
Certainly debt negotiation could be considered so could rolling the debt over to a nil or low balance credit card.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
