Forum Replies Created
Yes I agree with Maurice.
Alistair knows his stuff and is good to deal with.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes as Jamie mentioned you will be fine but you wll be suprised how many of the major lenders will still ask for genuine savings even at that LVR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Structure. Company no CGT discount. Other structures get the 50% cgt discount.
Unless purchased using a SMSF when you get 33% discount not 50%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Whilst a lender cannot discriminate over your age under NCCP they are required to ask for evidence that the loan can be serviced whilst in retirement.
Statements such as they intend to sell up their investment property to pay down the debt are not acceptable under NCCP and a lender would ask for statement from their financial planner or superanuation company advising of the likely annuity payment etc to determine whether they can service the debt.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Might have to slightly disagree with Den.
Had a client approach us in early December who had been to see an Accountant only to be recommended a Hybrid Trust structure with Corporate Trustee. Some several thousand dollars later he walked out carrying the Deed.
With the type of property he was trying to purchase and the circumstances regarding the deal itself we had no lender who would consider the deal in the structure proposed.
We subsequently ended up doing the deal in his personal name so that he could settle and the Deed will sit on the clients shelf for another day.
Most Accountants are not aware of what is on offer in regards to finance facilities these days and unless they are licensed with effect from today are unable to offer Credit advice anyway.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Leo
Hate to say an Accountant wont be able to assist you in structuring the loan (unless of course he holds a Credit License) merely the entity to purchase the property.
A good mortgage broker will help you with the loan structure to ensure you can carry on purchasing IP's.
Course everything is subject to serviceability come 1 Jan so probably even more reason to be engaging the services of such a professional.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ranil
Your wife could look at purchasing 50% of the current PPOR from you and then you use the raised funds for deposit on the new property. Not sure about NSW but there maybe some Stamp Duty payable.
In saying this you need to work out whether the Stamp Duty cost is outweighed by the interest savings on the new property.
From my initial numbers i would have thought it would be.Your Banker or Mortgage Broker can help you with this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Mark is a good guy also i just like to support people who give their time for free and contribute to the forum.
Steve certainly does that and as i say looks after my portfolio and has done for 15 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kristy
Have a look at http://www.bantics.com.au website as they have a couple of excellent articles on "How not to become a property developer".
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mitch
Happy to recommend someone to you.
Try Steve Hodgkinson who is with the Gold Business Group at Southport on the Gold Coast.
Steve has been my Accountant for 15 years and is an expert on property structures.
I have referred literally dozens of clients to him from the forum and he is a regular contributor himself.
Address
56 Davenport Street (cnr Davenport & Bay Streets),
SOUTHPORT QLD 4215Postal Address
PO Box 428, SOUTHPORT QLD 4215Phone: (07) 5532 2855 Fax: (07) 5532 4563 Email: [email protected] Cant guarantee what day they open but give him a ring in the New Year, tell him i sent you down.
Many good property Accoutants arent taking on new clients so mention my name (Dont worry i dont receive anything for the referral) and I am sure he can assist you.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The security is not the issue or what decides whether the interest is deductible more "the purpose" of the funds.
You could secure the whole loan against a moped if the lender accepted that as security if the funds were for investment.
In regards to your spouse is she employed on a higher Tax rate than you ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
"Veda" but close enough.
P/L would have to have gone as that will really drag the credit score down.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Think you might have misunderstood the post
However converting your existing residence into the investment property will mean none of the interest is deductible.
This is not the case as the interest on the100K existing balance will be deductible when you make the property available for rent.
Is the current property solely by you or with a partner. If so you could look at a spousal buyout.
Depending on the location of the property you mighty trigger partial Stamp Duty however would be worth do the numbers.
Cheers
Yours in Finance.
Richard Taylor | Australia's leading private lender
Assuming your CRAA is totally clear and you can come up with circa 10% deposit (You will probably need all of that) as depending on your ages your Credit score will not read well with Assets / age.
May get 95% lvr so on a $300K property would need 15K plus acqusition costs minimum.
If any credit impairement still showing then unlikely to get much at all.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Matt several lenders have been taking rent payments as evidence of savings for some years now.
The Dragon has gone the other way and actually tighened up their lvr policy.
No waiving of LMI there now Wesuck are the big brother.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Save on possible Land tax however just incur higher Accounting / ASIC fees instead let alone increased borrowing costs when it comes to taking out a loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi again IP
Yes some lenders will factor in potential income from the property which will be the IP.
No issues in getting the approvals yet not lodging the Titles.
Couple of clarifications there:
1) Some lenders insist that you separate the Titles (i.e NAB etc)
2) Your DA may require it within a certain timeframe. (Council might like the 2nd set of full Rates)Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Morning IP
Given that it is 4.28am in the UK and i still sulking over Chelsea's loss to Arsenal last night I will keep my answer fairly short.
1) Not exactly sure what you are asking here but assuming you are merely referring to the lvr then Yes lenders would have a problem with the numbers. This is not to say that the deal can funded on the income shown as there are too many other variable.
2) Most lenders will want the interest paid monthly especially if the deal is done as a residential loan however there are a couple of ways of getting around this.
3) A business plan wont be of any use on such a small project. Lenders will want evidence of income (payslips / Group Certificate / 2 Years Tax Returns if self employed / rental assessment). Copy of the plans, specifications and fixed price building contract for the new construction. Details of external liabilities i.e credit card statements etc.
4) This is a personal preference. Strata Titling the properties and generating 2 Titles will cost you more i.e plan of subdivision, Titles fees etc etc and each property will be rated for Council Rates. In saying this certainly you can split the loans and have 1 on each lot and keep them separate.Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Morning PJ
Yes most lenders will allow you (subject to income and equity) to establish a LOC against your PPOR and some will allow mutliple splits.
I wouldn't have an issue in having 1 LOC for multiple deposits because structured correctly you will refinance the IP to draw out the equity and pay down the LOC anyway to allow you to keep on buying further IP's.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Couple i can think of would include:
1) Approaching US lenders direct.
2) Using a non Australian mortgage broker.
3) Using a Australian mortgage broker who hold a full Credit License.
4) Moving to the UK or away from Australia.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
