Forum Replies Created
Yes certainly does apply.
I have many a client with a dozen or so properties and all of the rental income is being diverted into the offset account.
When the PPOR has been paid down nothing to stop you linking the offset account to one of the PPOR loans and repeating the process.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sep sorry old mate today has been one of those days with the number of loan enquiries, calls and emails at a record level
I think the issue is lenders are decliningg more deals than ever before so havent had chance to get to the forum questions until now.Jamie has hit the nail on the head.
It all boils down to the purpose of the funds with lenders want to strictly control the access to credit to ensure it is prudent and according to their lender guidelines. The old days of merely saying "Future Investment" have been and gone.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ben
Regretfully not.
The Grant is only available to 1 of you so if you were to purchase a property you partner is unable to purchase separately and still qualify. Now depending on which State you are in the Stamp Duty concession maybe different.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi V
No it would be the way forward and should have been set up like this from day 1.
Just make sure that your offset account is a true 100% offset account and not a typical quazi offset account or you may have issues down the track if you ever rented out your own PPOR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sandtracker,
Are the loans cross collateralised i.e did you use the security of your PPOR to purchase the IP. If so then the fact that the IP has fallen in value will erode your equity and may mean that you financier will not allow further borrowing.It is a lot cleaner and easier (you situation is a typical casient scenario) to keep them separate.
I am assuming that you will form a Discretionary Family Trust with you sister to buy your IP's and whilst she might bring cash to the table you would need to gear against your equity to lend to the Trust.
The mortgage mess refers to the assumed CC of the loans.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry J but that is not quiet correct
The FHOG only applies if the parties (including a partner) havent entered into the property market before.
You can certainly enter the property market and acquire an Investment property and still claim the FHOG.
The reason Aloha's partner would not qualify is that Aloha has purchased an owner occupied property previously and therefore his / her partner would not qualify. Had the property been an Ip then he / she would qualify.
Cheers
Yours in Finanec.
Richard Taylor | Australia's leading private lender
Hi Treb
Sorry i think you misunderstood my comment.
What i was saying was i can think of a major lender who would have done the deal from day 1 at a sensible rate of interest and they are not a lender of last resort but with 6 credit entries on the credit file they would not consider it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Marty
Been there tried them and they said NO.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Aloha
No unfortunately he/ she is unable to claim the Grant as you have already owned a property.
Sandtracker – You situation sounds like a bit of a mortgage mess no doubt created by your Bank.
It is difficult to comment without knowing any of the real details but more often than not there is always a way.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Saurin
Yes i think you have just about nailed it.
To minimise cash flow might want to chose a lender that will allow you to capitalise the LMI.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ferdinand
Ok if the property is your 1st home then I understand you want to apply for the FHOG & SD Concession.
Dont forget the terms of the Grant state that you need to occupy the property for 6 continous months in the first 12 months so nothing to stop you renting the place before you move in. In many cases the property couldnt have an existing tenant in it and you need to wait until the lease has expired before you can move in.
Structured properly i think you could still get the best of both worlds.
Might have to lodge the FHOG separately and not have the funds available at settlement but either way could still be done.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You could do Dean but the securities would then be cross collateralised.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Regretfully your partner wont be able to buy and claim the FHOG as you have already claimed it.
From what you are saying this project could the first of many so i think you need to be make sure it is structured correctly.
I wouldn't use your PPOR as security for the next deal but look to take out a LOC and maybe lend the funds to the Trust or whichever entity you intend to use for the new property.
There are a 101 considerations as CGT / Trading Profit will reduce your cash reserves very quickly.
Your mortgage broker should be able to give you some options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You would only qualify for a lodoc loan if you hold an ABN which normally means you are carrying on a business.
PAYG Lodoc is a thing of the past.
In saying this i am unsure why you need to go lodoc.
Why would you not buy the property as an investment property prior to moving and use the potential rent to justify the repayment serviceability. Structured correctly you could claim the deductions prior to moving and then if you later reside in the property loan can be restructured.
Of course without any real numbers it is difficult to make any form of recommendation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Will relate to the Stamp Duty concession in Qld.
Simply if it is your first purchase and an owner occupied property you wont pay stamp duty if the consideration price is less than $500,000.
Anything over this will be paid at a reduced scale compared to a normal owner occupied purchase or investment acqusition.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Tiffany please do.
Just make the spelling is correct – see below.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Stacey
What is your view on the appropriateness of a discretionary trust for a single investor/beneficiary
Very simply circumstances change.
You may get married, have children, divorced or invoved in a professional or occupation where you feel that you need to protect your assets.
Sometimes some careful initial planning can save you thousands down the track for a variety of reasons.
Of course if you need to claim the negative gearing available on the property from day 1 then Buying in a DFT may not be the way to go for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry for the delay in coming back to you the number of applications and enquiries today has been ridicolous.
You wont fund it through a traditional lender and as Duckster as indicated will purely be a non conforming or private lender.
I have just done one in Melbourne at 60% but it was done at 9.75% thru private money so certainly not cheap.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
First Name – Richard
Live – Chapel Hill, Brisbane
Started buying the odd property or two in the mid 90's and now have a couple …………….
Enjoy helping people with their finance in order to achieve their property investment dreams.
Personal goal when i came out of premature retirement was to make 100 property millionaires which i did.
Now want to make that 1000.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Totally agree with Terry.
Try one of the smaller credit unions as they would certainly be included to look at a deal especially where you were giving them security by way of the home.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
