Forum Replies Created
Andrew
Where is the property located ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bris
Interest only gives you flexibility as you never know you may decide to buy another PPOR down the track (where of course the interest will not be Tax deductible) and want to use the funds in the offset account as the deposit.
if you have paid off the loan then you will have issues in trying to split the deductible interest / non deductible part.
Does it matter than the amount you loose is less than it would be….. Dont buy property purely for the Tax benefits.
There are several excellent style loans that could cater for your husband self employment depending on the loan to valuation ratio.
Certainly renting a property and claiming a portion of the rent / power etc as a deduction to your husbands business makes sense and wont contaminate the PPOR for CGT purposes as long as you move back into the property within 6 years and have claimed another property as your PPOR.
I would be accessing some equity in your current property initially and then using this as deposit on the new IP whenever this maybe. I am unsure as to with whom your current loan is with as this will have a bearing on the product range and interest only flexibility.
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Yours in Finance
Richard Taylor | Australia's leading private lender
GOM with great difficulty hence the issue in financing thru standard lenders
We did arrange finance for Yorknxy but she didnt want to take it up.
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Yours in Finance
Richard Taylor | Australia's leading private lender
has amanda and that website disappeared ?
I believe regretfully so.Steve has some excellent resources in his online shop and as he funds the forum i believe we should where possible
support him.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Cassie
I do a lot of public speaking for similar property groups to your own on wealth creation and i started my property portfolio so would be happy to be involved.
Stick me on your email list.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes as long as your name was not on the Title of the first property and you were claiming it as a PPOR.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Brisul
Firstly welcome to the forum and I hope you enjoy your time with us.
To answer a couple of your questions:
1) The rent received on the property will need to be declared as income however the expenses incurred as a result of this will be deductible. I am assuming that the property is held as Joint Tenants so the income / deductions will be apportioned 50 / 50.
Any costs incurred in setting up the original loan will also be deductible over the balance of 5 years or the term of the loan whichever is the longer commencing from the date of original Settlement. (Might mean you can claim just under 4 years worth)
From the initial figures the property will likely to be slightly positively geared so this will be disadvantage to your husband.
I am unsure as to the age of the property however a Quantity Surveyors report may be worth looking at in order to claim an Capital Allowances / Depreciation.
2) I would be switching the loan to interest only (In some cases we recommend this to clients even for a PPOR just in case something like this happens) with 100% offset account however be careful as there are some quazi offset accounts on interest only loans with certain major lenders. These should be avoided.
3) Going forward with a new IP purchase I would not use the offset savings however look to release equity and use this as a deposit for a new IP (Assuming you can service the loan with your pending maternity). Structuring the loan you would need to look at splitting the loan between your current PPOR (future IP 1) and new IP to avoid cross collateralising the 2 securities.
Of course we haven't discussed a spousal buy out in relation to the remaining shares in the existing PPOR to maximise your deductions when the property is rented. In certain States there is no Stamp Duty and could be worth looking.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Reginald, i hate to say as a minor lender probably not going to find too many clients use them for their funding.
In saying that probably the CEO of PMG will probably join tonight and tell me what a good outfit they are.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Cant see any issue with Jamie's suggestion and is what i started with and what i still recommend to investor clients today.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Casie
Firstly welcome to the forum and i hope you enjoy your time with us.
I hate to say although i have personally completed dozens of such deals over the last 10 years if you thought that the finance market had improved for such lending then regretfully you are very much mistaken.
Of course with equity or cash things are different however without fully knowing your position it is difficult to comment.
Unlikely the vendor will accept a Call Option but i guess you never know until you ask.
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Yours in Finance
Richard Taylor | Australia's leading private lender
A combination of both.
I am suprised he doesnt think you would not need an ACL given that you are advising on Credit Terms.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Cath
'Before you advertise for your JV partner have you obtain your Credit License under NCCP.
I for one as a potential investor would want to make sure that the person i was dealing with was Licensed and your wesbite doesnt seem to show the License Number.
CHeers
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Richard Taylor | Australia's leading private lender
Keren
Which City ?
Which Southbank ?
There are more than 1.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Guess it is going to boil down to what equity you can access and what you service in the way of borrowings.
You can always make money when you have money it is just starting out can sometimes be hard.
Fear not we all started somewhere.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Elemental i have PM ed you very good contact with LJ Hooker in one of the suburbs you have mentioned.
Shoot me an email with the address you are looking at and I will send you the Residex report.
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Yours in Finance
Richard Taylor | Australia's leading private lender
PJ
I am not saying wrapping wont work in fact i am still a Director of First Home Owners Group Pty Ltd which is a Company we set up to specialise in wrapping and have done very nicely thank you out of it over the last 10 years.
The income certainly helped me pay down at a quicker rate than i could have done so my portfolio of B & H properties i guess what i was pointing out was it is a lot harder to both finance and comply with legislation than when we did our first wrap in 1996.
At the time we had support of 2 of the major 4 Banks competing for our wrap business at residential rates as to them it made sense however the market has changed considerably and now mortgage insurers wont knowingly touch a wrap or LTO and you will struggle a lender who openly will encourage the type of business.
Personally I think there is more of a demand for clients requiring wraps or 2nd mortgage carry backs or other +cash flow techniques than ever before but you have to treat it is as a business and be prepared to write a lot of business. Undertaking 3 or 4 wraps will become a bit of a bind and not viable in regards to time and effort.
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Yours in Finance
Richard Taylor | Australia's leading private lender
There is no legal requirement to actually use any of the utlities.
In fact if you claim the property as your PPOR but during the week are offered free motel accomadation as part of your employment and only return home at weekends then this is totally acceptable.Also is you sat in the dark and tried to save $$$ and only had the minimum useage then this is also acceptable.
What you cant do is live at home or with the girlfriend full time and claim at the same time you are really living at your PPOR.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Suee
Having the power, water and telephone in your name although the postal address is a PO Box would normally be sufficient evidence of residency.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ele
Firstly welcome to the forum and I hope you enjoy your time with us.
How far North are you looking at ?
I have some excellent Real Estate contacts on the Northside of Brisbane so let us know and I can give you their details. You are more than welcome to give them a ring and pick their brains about the areas.
Most of them have been around for donkeys so not a matter of trying to get you on paper as quickly as they can.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mike
You bet they do
According to their web its free advice,they make commission from the developer.
Next thing they will be telling you they have had a valuer already do the valuation on the property and you can use their inhouse finance broker who can use the same report to save it being retyped.
Trust me nothing is for free.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
