Forum Replies Created
Doesnt have anything to do with the lender NCCP would prevent any lender from lending based on the fact there is no guaranteed exit strategy within the next 24 months.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No i believe the ones i mentioned will give you a higher rate.
The Dragon = St George Bank
Ubank = National Australia Bank
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes depending on the State usually if you make it an IP in the first 12 months.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Again i dont want to be a party pooper but Options B,C & D wont run through NCCP these days.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Angel
NCCP may have changed lenders attitude on that i am afraid.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jake
That is the case with the FHOG but not the Stamp Duty concession.
Different in each State,
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Squirrel
Firstly welcome to the forum and I hope you enjoy your time with us.
There are a few questions raised so let us begin and knocking them off one at a time.
When you say "WE" own our PPOR I will assume you mean you and your partner / spouse etc.
On this basis there are a couple of considerations depending on where the property is located:
1) Switch the existing loan to interest only. Yes you will only be able to claim a tax deduction on the current loan balance as it is now being $286K.
2) Look to take out a separate loan against the current PPOR (future IP) being either a Line of credit or equity interest only loan. The interest on this loan will not be deductible so you might want to structure it differently.
3) Using a separate lender secure a loan of 80% of the new purchase price using the balance of loan 2) above and your own cash savings to cover the acqusition price and associated costs.
An alternative structure would be to look at purchasing your partners share in the current property, paying any stamp duty and then borrowing the full amount and claiming a Tax deduction in your name on the entire interest.
You then use the funds raised as deposit on the new property (Future PPOR) converting non deductible debt to deductible debt.
Obviously without the relevant numbers it is difficult to fully assess the situation however certainly worth thinking about.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sykes
Firstly welcome to the forum and I hope you enjoy your time with us.
Obviously the focus will need to be on getting gainful employment once you finish your uni studies so that you can service a loan but assuming this can be achieved there is no reason why you cant purchase a property as your PPOR, qualify for the relevant Grant and exemptions and then rent the place out.
Only issue i can see is serviceability as remember you the FHOG wont increase your borrowing capacity and you will be limited to on your earnings capacity early in your working life.
Look to set up an interest only with 100% offset account. Not all lenders will allow this on a PPOR so a good independant mortgage broker should be able to point you in the right direction.
In regards to a high interest online account look at someone like Ubank, ING or The Dragon. If you are preapred to tie the funds up for 3 months someone like Heritage is very competitive.
Good luck and congrats to wanting to start so young.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say i disagree with Angel about approaching a Financial Planner employed by a Bank as they are limited in what they can offer and are always biased towards the products they promote.
Look for an independant Financial Planner who works on a Fee for Service basis rather than a commission only basis.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kris
As long as you can show sufficient funds in your account in order to settle the deal there are certainly lenders who will look at such a deal.
Both 90 & 95% lvr with Non genuine savings deal are available without any real interest rate loading.
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Richard Taylor | Australia's leading private lender
Might want to consider a Deposit Bond if the Seller will accpet it.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Firstly welcome to the forum and I hope you enjoy your time with us.
Without the balance of the information to hand it is difficult to provide an exact recommendation but just because the IP security was sold there should be no reason why you had to reduce the loan unless of course the loans were cross collateralised.
Even there there should be a way around it.
As i say difficult to comment without the full facts.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Luke
Unfortunately the MISA offset account that CBA offer is not fully transactional so is probably not suitable for such a strategy however i agree with you interest only with 100% fully transactional offset is the way to go.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tristan
Firstly welcome to the forum and I hope you enjoy your time with us.
What you have to bear in mind that each lender has its own method of calculating serviceability and the variables that make up this formula are vast.
Some lenders take your existing external liabilities at the rate you are paying the other lender whilst others work off a sensitised rate which can be 1.5 – 2% higher.
Then you have the variable of living expenses. Whilst most lenders work off the same HPC table there can be a difference in the scale adopted.
A percentage of the amount of rent you receive can vary between 75-100% and this couple with the negative gearing effect (some lenders dont factor this in) can make a huge difference.
All in all you probably an independant mortgage broker to review your current position and make some recommendations.
Even down to the fact that your current loan is a P & I loan rather than Interest only will make a difference.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Eamon
I appreciate your concern but remember structured correctly you can still borrow 100% lvr when buying in a DFT it is just a matter of how you do it.
Regretfully as you mention the losses cannot be cliamed but there are reasons why you would take the lvr to that level especially if you still have non deductible debt by way of a PPOR.
i purchased my first property in our DFT in 1994 and we paid cash for it having come over from the UK with a swag of pounds and a good exchange rate. In saying that most of my other IP purchases were geared to 80% initially so i dont think that is a problem.
One consideration is to ensure your financier understands structures and doesnt charge a loaded rate or high set up costs for running the Trust through their legal department for scrutiny.
Even with a Corporate Trustee there is no reason why you should pay any more than you would if you were buying in your own name.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Anthony both condacending and clearly inaccurate in many statements.
Not sure where you are PB but in Qld you certainly do not need a PRIVATE registration fee payable to the OFT to be a developer. Anyway for stating it is not normally available publicly dont make me laugh.
Oh well i guess another poster who will get to 3 posts and then disppear back under ther rock they crawled from without contributing anything to the general property community who post here.
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Yours in Finance
Richard Taylor | Australia's leading private lender
If you want to email me the actual street number and address i will send you back a Residex report on the property.
Not guaranteed to be exact but might give you some good evidence to back up your due diligence.
Good win by the Reds over night as well.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry i hate to disagree with Marjac but certainly the names on the Title and the loan can be totally different.
As long as you can persuade your lender there is some Financial Benefit for your mother to be a co borrower or Guarantor there is NO need for her to be on the Title.
They may suggest or insist that she gets independant legal advice.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Be suprised Tesse due to the reduction in a FP client base and revenue income since 2008 many of them have applied for a ACL (Australian Credit License) to enable them to undertake finance activities. Still of course very much the minority.
In saying that more and more are teaming up with accreditated mortgage brokers to provide a complete package.
Having an in house Accountant is not new most practises do and of course to provide you with legal advice such a preparing a will they need to be legally qualified.
Good to hear you have it in hand but as i mentioned in my initial post to Oto a FP who doesnt hold an ACL cannot provide him with any loan advice.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Firstly welcome to the forum and I hope you enjoy your time with us.
Buying with a friend or relative like any investment can have its up and downs.
One thing you need to bear in mind is that irrespective of the amount you both individually put into the deal you are jointly and severally liable for the entire debt. This means because you put in an extra $5K doesnt mean that you will owe $5K less.
Whilst the liability remains equal you may still want to split the loans and have a offset account on each split.
Certainly lenders will allow this.
Accessing equity in the future is not that easy as it will require your sister to be a party to any new additional loan secured against the property and her personal borrowings will have an influence on how much you can borrow.
If you are looking at both buying further investment properties in the future then you need to be fairly careful on how you structure the initial loan set up.
A good independant mortgage broker should be able to show you how you can have your cake and eat it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
