Forum Replies Created
Tesse i hate to say most Financial Planners dont hold ACL so cannot provide any form of Credit advice.
They also cannot prepare a Depreciation schedule unless they are licensed to do so.I have no issue in Oto130 holding 30K in cash especially if it is held in an offset account.
Certainly do not use any of the cash reserves to put down as deposit or cover costs of a future IP especially when you still owe $160K on your existing non deductible home loan.
Suggestions like that simply are not sound when it comes to maximising your Taxable deductions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
NHG which area are you located in ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bec
Hate to say you wont get a lodoc loan being PAYG and secondly making a false income declaration is mortgage fraud and certainly not recommended.
Like anything if you cant get the deal over the line then there is probably a reason for it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Shel
Hate to say it happens all the time and with the serviceability rates for a few lenders increasing again from Monday borrowing amounts will fall.
As Jamie mentioned all you need to do is look at an alternative lender or consider using a mortgage broker.
From the lenders perspective what you have to consider is that at the moment your hubby has to support 2 adults but shortly it will be 2 adults and a little one. Yes they maybe some FAB to add in for income but expenses are likely to increase. Kids cost money trust me i have 3.
Also under the new Credit Act the lender is responsible for taking into consideration any factors within the next 2 years which may influence your capacity to borrow and repay the loan. Imagine if you said you were thinking of having another 1 in 18 months you could probably afford a garden shed.
In saying all of this you would be suprised at the varying amounts you can borrow from lender to lender so certainly look at getting an second opinion.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Michael mentions you would be crazy to move away.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Luke
Not the greatest rate in the world but sure element of flexibility in their lending policies (or sorry was that pre NCCP).
Dont at this stage have a fully transactional 100% offset account as MISA doesnt fit that bill.
If you are happy and they are doing what you want why switch.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi May
Yes then can still obtain a loan however the lvr will be reduced and they will be required to obtain FIRB approval.
This will restrict the type of property they can purchase so suggest they check this out first.
http://www.firb.gov.au/content/default.asp This may help them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Michael i totally agree.
I went to a breakfast meeting only last week at their HQ here in Brisbane and the < 50 Sq M product was mentioned as a niche product.
I have known Kim Cannon for nearly 18 years back to his Nationale days and First Mac as they are now known after the amalgamation of the previous businesses has always been slightly different in the odd area and space. He is definately an innovator and very successful.
I like Michael support non bank lenders as much as the next however you have to be accurate in your facts. The product is available and openly marketed by their BDM's. Like anything if you get the support of the back up staff and credit and the range of products is acceptable then certainly you would look at them as a lender and be in your suite of loans you would recommend to a potential client.
Personally i dont consider their range of product or service levels to be what i am after from a lender so other than the odd loan i dont place them high on my list of potential funders.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Kane i think you will find the NAB offer is only $700.
Of course many lenders dont charge an application fee or ongoing fees so they may prove to be more attractive than a mere financial incentive to move.
With regards to the proposed banning of exit fees this has been muted by the Fed Govt however is under opposition from everyone other than the big 4 as it will likely reduce competition and increase other fees, charges and possibly interest rates.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Do you want to give us a little more details about the property and when you say student accomadation how many are you referring to.
If you mean a block of 18 bedsits then would be a different lender that for a 3 bedroom house all individually let to students.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Euro First Mac have the small under 50 Sq niche market for some time now.
And on the commission front they used to pay Brokers 1.5% upfront with no trail (Couldnt tell you off the top of my head if this is still current) and no clawback so i guess for many Brokers made it an attractive reason to write FM deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Stephen
If the purpose of the loan is for investment irrespective of the security the interest is deductible.
If the Bank would lend you the entire loan using the security of a pogo stick and the funds where to buy an IP then the interest could be claimed as a deduction.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Stephen
This will depend on whether you are employed or self employed, the entity you purchased the property in i.e Trust / individually and to a certain extent you own cash flow requirements.
Assuming you would like Tax adjustment on a regular basis and are on a PAYG basis i would be undertaking a Depreciation schedule immediately (if not already done) and then submitting a Tax variation to the ATO. Once this is approved you give this to your employer and he will deduct a lower rate of Tax based on the adjustment to your Tax coding.This way you will receive in each pay packet.
How you pay your tax agent is again between the 2 of you to decide but most of us pay our Accountants / Tax Agents annually once we lodge the Return.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say i disagree.
I would pay down $31.5K off the home loan balance on the basis you can take out a new sub loan for $31.5K.
Then i would use the $31.5K sub loan as deposit and sufficient to cover costs and go to a new lender for the balance.
This way the interest on the $31.5K becomes deductible and you dont incur the LMI premium on both loans.
Of course it maybe a viable option to increase the loan and cop some LMI but without doing the figures it is difficult to comment.
i am sure you Broker has discussed this option with you as well.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dan
Big difference in Australia you can borrow 95% of the purchase price in most suburbs so make your return on OPM.
In Michigan you can borrow diddly squat.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
fword i havent added to my portfolio for the last 5 years in Brisbane and mainly on focused on repaying debt.
Down to a 13% lvr now so should be totally unencumbered with 30 months.
To be honest i cheated a little as i have a inner city block of 18 units in line (14 x 2 and 4 x 1's) and another 6 x 2's.
If you want any more info read Oct 10 edition of API magazine.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Michael
Actually 40 but thankfully we employ 2 full time girls you do all of the property and Vendor Finance paperwork so keeps my Accountant happy
He is a forum member too so the odd referral here and there helps when it comes to negotiating the annual bill lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Try Nigel Kibel he is a forum member based in Melbourne and been in the US property game for many years including spending time working over there running his own agency.
Search his name from a previous post and shoot him a PM or drop him an email direct [email protected]
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I dont now about 5 years but certainly over time.
I arrived in Australia from the UK 17 years ago and bought my first place in Albany Creek, Brisbane.
Now some years later i still own the first property and another 39 of them.
Helps that the Pound was strong when i arrived but with structure and careful planning it is certainly possible.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Couldnt agree more with Andrew.
Although it sounds convenient to have a one stop shop you have to ask yourself how much are they earning for the convenience.
Buying a property and paying over the odds because someone held your hand along the process is not the way to start your investing career.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
