Forum Replies Created
I agree drop Jamie a line or give him a call and get some Professional advice.
As Michael mentioned it doesnt cost you a cent and you will get free information from someone who owns a IP or 3.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ez
Hate to say it is not a matter of merely making advance repayments on your IP as the loan itself needs to be restructured to allow payments in advance.
With tomorrow being the 3rd June you would pretty lucky to have any lender approve and have documents out ready to settle this side of the financial year end.
Calculation is fairly simple and will depend on your current and future marginal taxable income and circumstances.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Charlie
Why complicate life why not place the funds into her offset account and then come to an agreement each month what she pays you. That way when you need the funds back she can transfer them to you without the need for a redraw application etc.
Mayuran has outlined the calculation however you may wish to substitute "Sisters mortgage rate" with "Agreed interest rate".
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Andy
Sounds like a bit of a dogs breakfast to me and I can see why you would want to uncross the securities and make life simplier going forward.
With the available equity and subject to Suncorp agreeing to partial releases no reason with satisfactory serviceability why you cant achieve what you are looking to do.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Nathan
Hate to say if the Title is in Joint names and you are occupying the property she wont be able to claim much.
Why wouldnt you have the property in your sole name and you claim the FHOG / SD Concession (Decent saving in Qld for your First Home) and have the loan in Joint names.
Alternatively she could lend you funds as deposit and you pay her interest which she would declare as income.
Your mortgage broker should be able to come up with some lending options armed with the full facts.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It is a very good question Bonnie.
Look for a broker who is experienced in working with investors and has an IP or two himself.
Personally i wouldn't be taking advice from a Broker who is out there promoting her / himself yet hasnt yet paid off his own PPOR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bonnie
Firstly welcome to the forum and i hope you enjoy your time with us.
To be honest i would be very suspicious over a Company that is marketing property to you an also arranging finance.
They will be less likely to be truelly independant ad certainly not be keen to tell you if the Bank valuation comes is less than your purchase price.The suggested structure is about right however you want to make sure someone acts in your interest and not their's.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Dragonfly Jamie has correctly pointed out (as always) that anything that requires LMI these days is always up in the air until formal approval has been given.
Lenders or indeed mortgage insurance will not accept the fact that the balance of settlement proceeds will come from a future even such as bonus, sale of an asset etc and always ask for evidence that the funds are in the account.
A lump sum may also not be acceptable to the mortgage insurer irrespective of what your broker tells you.
Of course i am also assuming your Broker has told you that you would never use the $50K bonus as a deposit especially if you still have non deductible debt by way of a home loan on your PPOR.
This course of action is simply ridiculous and certainly not Tax savy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i would second Alistair as a recommendation.
Forum member specialising in Investment as Nigel mentioned and knows his onions.
You wont go past better.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Lora
I think you are getting confused with a Principal & Interest loan.
Interest is charged on the reducing balance. This means with every repayment you repay a portion of the principal (Albeit small is repaid) and the amount of interest for the month is adjusted accordingly.
As time goes on and the principal balance reduced (assuming interest rates remain constant) your monthly repayment will comprise more principal and less interest.
Hope this clarifies the situation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
RZ
It is simple:
1) A redraw is considered a new loan and depends on the purpose.
2) An offset account is not.ATO looks at the purpose of the funds to ascertain deductibility.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If your have the serviceability capacity to put down a lesser deposit and buy a 2nd property then i would certainly consider that.
Going to need minimum 20% deposit plus costs based on the fact that your credit report is clean as a whistle.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jon
Welcome to the forum and I hope you enjoy your time with us.
Only look to switch your current loan to IO if you believe in the distant future you might rent the property out and then look to buy another PPOR. If this is never likely then P & I is not a crime.
In regards to going forward i am slightly confused by the wording of your post.
You say that you are owning $275,000.
If you mean Own $365K – $275K i.e 90K then i cant see a problem.
If you actually mean Owe $275K then you will more than likely incur LMI where the LVR is over 80%.Might be a couple of ways to reduce or get around this but in the main it is a cost of doing business.
Good luck on taking the first step in the IP world and look forward to reading further posts.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Cant see an issue in obtaining finance although it will depend on the date you were discharged (assuming you are) however the price of the property concerns me.
At $80,000 it is either very small or very regional and that may scare some lenders even at a 50% lvr.
In saying that all things being equal you should be fine.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No that i am aware of.
With no stamp duty or CGT i think you have enough Govt driven incentives.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It is the Building Write off claim that if claimed adjusts the Capital base when the property is sold and not the Depreciation element.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
FAST who I am with have their own internal Sale / Acqusition program and dont offer them for sale externally these days.
Try someone like Buy A Trail or similar specialist company
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Shoot us an email with the address and be happy to email you a Residex report on the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi bella
Yes you are are on the right track but dont let Bank West tell you they dont do equity loans as i have done dozens of them with BW and never had a problem.
Then use the equity loan as deposit and use a separate lender for the new IP loan.
Drop us an email if you need further assistance and i can advise you further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As has been mentioned this day and age clients just want good old fashioned service and advice from their broker.
Email and phone conversations are totally acceptable and with the majority of lenders wanting applications lodged electroncially distance is neither here not there.
Why not drop Jamie a line and get him to assist you.
Lets face it ACT is only a good 3 wood away from Melbourne.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
