Forum Replies Created
Just ring Lee Doyle at LJ Hooker Narangba 3385 6200 and tell him i sent you up.
He knows me better from a company called City Body Corporate which i also own but mention my name and he will give you some good honest advice.
I have referred a number of Forum clients to him recently and every deal we have financed on one of his sales has proved to be good value.
Let us know how you go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi penti
Dont think your in a bad position and structured correctly no reason why you cant achieve your goal.
Your Bank are right you cant claim the interest on a redraw.
Suprised to be honest most Bankers say you can and then the clients only find out at tax time that they cant when their Accountant disallows the deduction.Course by then the loans officer or Banker has moved and no-one wants to take responsibility.
Simple loan structuring will get you what you and with motivation no reason why you cant get there.
To be honest i am not convinced your average Bank johnny has any idea.
All you have to is ask them how many properties they own. Most havent even paid off their PPOR.A mortgage broker is independant, acts for the client and not the Bank and should be able to offer you free unbiased advice on loan structures and products that suit your needs and not the Banks.
Any other quiestions just ask away.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Did CBA tell you that their MISA account is not a fully transactional offset account.
Remember not all lenders calculate their offset accounts the same especially on interest only loans (The Dragon is another with a few funny quirks for investors) so probably whey your figures dont vary.
I cant see too much benefit in their Wealth Package.
Hate to disagree but i find Bank West good to deal with and have never missed one of my Settlements.
Course the are not a lover of Trust / Pty Ltd structures but in saying that which major bank is.
There are many other options especially when you are structuring the loan correctly.
Course from Friday you need to add on the extra 45 bps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Oh i think all 3 other majors will follow suit in some form or shape and really just didnt want to be the first to make the leap.
The fact that CBA came out and did it so quickly makes you think that it was a pre-decided that if the RBA went they would increase immediately and didnt need another excuse.
Of course we all understand the reasons why being that overseas funding costs are increasing month in and month out and the pool of savings deposits is reducing. We are now not a nation of savers but a nation of credit and this credit needs to be sought from somewhere.
As Banker mentioned an increase in rates will have a knock on effect as it also means an increase in serviceability rate being the benchmark that lenders use to see whether you can service the loan irrespective of the actual charging rate.
Lenders all work out serviceability in different forms and shapes all with a common goal just a different way of getting there and with different factors considered.
Since the CBA annoucement we have had 9 new enquiries (some from forum members) all concerned that what they could qualify or do prior to 1.30pm this afternoon they can't now.
It is amazing that with another lender they still bolt in.
With the Banks coming under the NCCP umbrella effective Jan 1 2011 i think there will be a lot more deals lenders will be rejecting and dont think it bears very well for someone without sounds credit, savings or merely wanting to get ahead.
Competition is slowly re-entering the market and I guess any decent Broker needs to face the fact that his phone / email will be ringing loader than normal over the coming months as lenders decline more and more deals for a variety of reasons.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
And rubbing their hands with glee.
25bps from the Reserve means 40 bps from the majors.
Sorry scrub that CBA up 45 bps wow nothing a cash grab when you can.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wow CBA didnt waste time they have increased their interest rates already.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i cant recommend a decent Buyers Agent but you mentioned North Lakes (which by the way i like as an area) and i can certainly recommend and excellent Real Estate Agent in the area.
Let me know if you want the details and I shoot them over.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
Not sure if Mike is still on the forum offering it but if not you are more than welcome to email me and i can send you a report for any property in Australia.
I subscriped to the Australia Wide report as i am buying properties inter state and it helps me with my due diligence but have unlimited report access and never use it all each month.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Interestingly enough the RBA had increased the official Cash Rate in the December meeting 2 out of the last 3 years so no Christmas cheers here.
Whilst i dont think we will see a rate increase tomorrow i wouldnt put it past the Big 4 Banks to raise their variable rate within the next 30 days. These higher funding costs are killing their profits ……..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mav
Rather than confuse you with technical reasoning you might want to have a look at an article on just such a strategy on Bantics website http://www.bantics.com.au "How not to be a Property Developer".
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I guess everyone is looking for the same thing however if it is any use to you i have financed dozens of properties for forum investors in Melton this year and not aware of anyone who has had any issues.
If you locate a property and want to email me the street address i am happy to run off and email to you a Residex report which might aid the due diligence.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sri
Firstly welcome to the forum and I hope you enjoy your time with is.
One thing to bear in mind with the small units is that maximum lvr that is available to you.
Probably not an issue on a 1 bedroom unit but if studio and less than 40 square metres lenders are going to get a wee bit nervous and ask you to put in a greater deposit.
If you are worried about the risk then one consideration would be to fix the rate on the IP loan.
Lenders have vary criteria when it comes to serviceability so a mortgage broker should be able to crunch the numbers for you to see the best way forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As the boys have mentioned as long as you can back up the information with documentation to support the numbers then 95% + LMI is available.
Couple of lenders waiving their application / valuation costs so this is a savings in your favour.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mario
The NCCP (new credit legislation) which came into effect July 1 2010 places total emphasis on the ability to repay the loan and not recommend a loan that is unsuitable.
I am fortunate enough to have rental income on all of my properties that serviceability is not a problem but i can understand your frustration.
In saying this hiding behind a Trust structure doesnt mean that you pay the loan back and this is what lenders want to see in a worst case scenario.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mario
I think Steve has now qualified this statement further as all lenders ask you to disclose any loans which you Guarantee and as a Trustee you need to provide a guarantee.
These days buying in Trust will not increase your borrowing capacity.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
What Jac has described is what we did.
We purchased a block of 6 units in line in a separate Family Trust with the 3 children as beneficiaries.
We have renovated the whole block and will retain 3 and will allocate 1 to each child when they turn 21.
Course consideration needs to be given over the CGT and Stamp Duty implications but that is fairly easy to work out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Oneworld, well if you have a LOC set up on the equity in your current property you can draw on this to fund the deposit or associated costs of undertaking the project.
With only 1 income is going to be difficult to finance the actual project itself so a LOC / cash is probably the only way you are going to be able to move forward with such deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Scott
No real benefit there unless you have more in the savings offset account than you do have owing on the loan account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Personally i wouldnt use your own funds i would put them in the offset account for flexibility.
Yes the Trust Deed needs to be dated prior to the Contract being signed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tong
As Jamie you can certaInly have the loan with the same lender and not have these crossed.
Of course in saying this your Broker may not want to split them for you or not know how and that could be the difference.
There are a couple of ways of shifting the debt to your current property and making the interest fully tax deductible but there are costs involved and you need to weigh up whether it is worth it.
Your current mortgage broker should be able to the numbers for you and show you the options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
