Forum Replies Created
I have done dozens of 95% LVR with NAB Broker where they have not be clients of the Bank.
Need to be 4 star broker but can be done.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Well with the NAB this morning annoucing their aggressive stance on refinances away from CBA / Westpac i have a feeling it will last for a little longer.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Steve Hodgkinson – Gold Business Group has been my Accountant for 15 years and is a forum member, expert on property structures and more importantly a darn good bloke.
His contact number is 07 5532 2855.
In saying this i am not totally convinced you need an Accountant at this stage.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Advantedge own 3 Aggregators being FAST / Choice / Plan and offer their product through these member brokers.
I Aggregate through FAST so to see what FASTLend have to offer have a look at http://www.fastlend.com.au
No Application, valuation or lenders legals. No Title insurance, no monthly or ongoing fees.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie my mail is that is on the way this year.
I do a lot with Advantedge and think the product is very competitive, credit are excellent to deal with and with the ownership and funding from the National Australia Bank have absolutely no issue in recommending them as a lender.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As Dan mentioned you can certainly increase the loan (Dont know why you would) but can claim the interest on the increase as a deduction so really no point.
If the property is owned as Joint Tenants you could however look at possibly buying at your spouses share and the interest on such a Transfer would be deductible.
Other costs to be considered but depending on your marginal tax rate may well be worth.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Unless you are Qld and then YES it is definately required.
Unfortunately many buyers found to their detriment in the recent Brisbane floods.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As Curious has stated i wouldnt have thought that First Mac ticked too many boxes there.
Be interested to see the Preliminary Advice statement from your broker for the recommendation.
Yes you could do a lot better out there in my opinion.
Yours in Finance
Richard Taylor | Australia's leading private lender
All lenders will want to see that you have sufficient funds to complete piror to approving an application however if these funds have been sourced from family and are sitting in your account prior to lodging the application i cant see an issue assuming everything else is equal.
Of course if the funds are a loan from family and to be repaid with interest then the liability will need to be factored in.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Certainly wouldnt have coupled "flexible" and First Mac in the same sentence.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Without being funny do you think if you have been struggling with your current loans borrowing more money to buy a rental property is an ideal way forward.By all means consolidate your loans and save yourself some dollars but save for a while to get back on your feet first before you rush in an spend more.CheersYours in Finance
Richard Taylor | Australia's leading private lender
I guess they do pay rather high upfront commission so that could be a reason why he has recommended them.
In the current climate i cannot think of any other reason why you would use First Mac.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes wouldnt have an issue in funding in the way you suggested.
LOC on the existing IP to cover the 20% of land and constuction with the new IP financing the balance.
Post completion have a look at getting the property revalued and drawing back up to 80% of the valuation and using this to pay down the LOC on IP 2.
This way you keep your PPOR out of the mix all together.
The security you offer iwll have no bearing on the amount you can claim as a deductible expense.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Would you come upto the Gold Coast for the right Accountant ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
If your loan does not have an offset facility and you have to pay it down i would set up a separate loan split for the redrawn amount so you can clear identify which loan interest is deductible and which is not.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Aquel
Firstly welcome to the forum and I hope you enjoy your time with us.
Yes certainly I am also a great advocate of Discretionary Family Trust Structures as long as you realise that the negative gearing cannot be cliamed and is closeted within the Trust.
Of course once the property becomes positively geared this is not an issue and then they start to come into their own.
Misconception is that Trusts increase your borrowing capacity as this is clearly not the case.
On any appliation you are required to disclose any other loans to which you are a party and this would include your Guarantee in the capacity as Trustee.
Not all lender like DFT / Pty Ltd structures and many of the major banks charge application / legal fees for assessing the deed. Interest rate discounts are not as generous but in saying that it all depends on the lender concerned.
We deal with many Trust borrowers and have lenders who treat them as a normal application.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Terry has made a very valid point and one i mention to clients on a regular basis.
So often i come across clients who have been declined on the construction portion of the loan by their financier who was more than happy to lend them funds against the vacant land.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Terry is of course correct but selling the property to a Unit Trust with you being the Unit holder can sort of obtain the net result.
Deductible interest and Title retained.
Of course this comes at a cost being Stamp Duty and possibly triggering Land Tax.
Nothing in this world is free.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Olivia
Welcome to the forum and I hope you enjoy your time with us.
First thing i thing i would be doing is switch Banks as if this is the advice they have given you it is clearly not in your best interest.
Flexibility is key when it comes to investing and we try where possible to ensure all of our clients loan structures give them just that. There is no point in paying down the loan to then redraw it at a later stage if there is some doubt that the interest on the redraw will be non deductible.
There are a couple of tools you would recommend to a client to get to where they want to be but of course sometimes it is not in your lenders interest to offer this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Anna
Firstly welcome to the forum and I hope you enjoy your time with us.
Certainly the amount of deposit will aid your cause but the biggest hurdle i can see is showing sufficient serviceability to borrow anything as the new Credit Act which came into play Jan 1 places greater emphasis on your ability to repay the loan.
Of course you will be able to factor in a percentage of the rent received but there are also othr expenditure considerations.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
