Forum Replies Created
Hi Freedom
Ok the way to approach this sort of deal is to work backwards.
1) Will you be purchasing the property in your own personal name or using a Trust / Pty Ltd Structure.
2) Will the land be subdivided into 2 Lots prior to constructing the units on the back block (If not will you have 3 properties on the 1 Title whilst the subdivision is being approved – Not liked bu the mortgage insurers).
3) What sorts of purchase price and construction costs are you referring to.
4) Post codes may cause an issue – 7325 Is Cat 3 with Gemworth but 7320 is unacceptable. PMI is on application.
The self insurers may look at it but there are other consideration there.All other requirements should be able to be catered for subject to the above.
Richard Taylor | Australia's leading private lender
McNorman
You could even wait another year or two and do exactly the same thing and Yes you will pay no CGT.
Richard Taylor | Australia's leading private lender
My preferred structure would be a Unit Trust so that either party could sell their units down the track or purchase units off the other party.
If it is a one off deal and there is only 2 of you then a partnership (with the correct Agreement) should be failry satisfactory.
Make sure you register the Partnership Agreement and have your own ABN, GST registration and TFN.
Richard Taylor | Australia's leading private lender
Would the real Chelsea Bouma please stand up.
Great post praising yourself but I ask you.
Shane and Cassie first i hope all goes well in October and congratulations to you both.
Certainly the Sunshine Coast has seen spectacular growth over the last 5-6 years and there is no reason to believe this will not continue. Also the rental demand is increasing and is an encouraging sign. The price you are looking to pay is certainly not over the medium price for the area.
From a mere cash flow perspective there will be a shortfall in the rent v interest repayments however depending on the age of the property will determine the amount of non cash deductions i.e Depreciation and Building Write off you can claim and this will certainly assist you in your weekly calculations.
Structuring the loan is very important so consider whether you use a simple Trust structure or you purchase the property as Tenants in Common. Also i am not a great lover of cross collateralising the securities so make sure the loan is a standalone deal away from your PPOR.
Correctly establish you can ensure that the rental funds can be chanelled into the offset account linked to your PPOR (I prefer this to a LOC) and then dripped out monthly to support the interest only loan on the IP.
Your Mortgage Broker should be able to assist you in the correct structuring of the loan.
Richard Taylor | Australia's leading private lender
Yes subject to the post code there are few non retail lender that offer such a product.
Same old story though if you havent got pre-sales you are going to pay a higher rate of interest.
Richard Taylor | Australia's leading private lender
Business zone will equal a commercial loan.
Richard Taylor | Australia's leading private lender
Hi Nicole
Hate to say they would have laughed you out of the Bank as you cannot enter into a Mortgage Contract until you are 18.
Richard Taylor | Australia's leading private lender
Yes Morwell is easily available on 100% lend.
You certainly dont need a large brokerage as most are franchised and only good as the operator.
In most cases you buy a franchise is you can or havent got a name or client base. They are the Big M Brokers of the industry and have little indepth knowledge about investments.
Richard Taylor | Australia's leading private lender
Normally the zoning.
In saying this whilst you wont get mortgage insurance on a Commercial deal you may stil get more than 80% LVR depending on the quality of the security.
Interest rates also can be just as keen.
Richard Taylor | Australia's leading private lender
Hi Tracy
Ok that makes sense then.
A pro package does alleviate a lot of the standard fees although i guess you are paying an Anual amount which with Anz is $340 per annum and you still incur a monthly fee on the Money Saver and fixed rate products.
The Pro pack also does not cover the Lodoc 80 product or any loan in a Company or Trust structure which are charged as normal.
Like everything it is horses for courses.
Richard Taylor | Australia's leading private lender
As Terrry mentioned – Finance.
You say the finance is all approved but it can't be approved if the lender has not sighted a signed purchase contract or carried out if required a valuation on the property.
Even if you have received a pre-approval I would still be making it subject to finance.
Richard Taylor | Australia's leading private lender
Which Bank is that Tracy?
Richard Taylor | Australia's leading private lender
Wrap it or Rent TB to create positive cash flow, i do it all the time thats one of my exit strategies.
Richard Taylor | Australia's leading private lender
Yes Rhys you certainly can.
Richard Taylor | Australia's leading private lender
Sorry that should have read
Off the top of my head you probably wouldnt get more than 75-80% with a retail lender.
Richard Taylor | Australia's leading private lender
Off the top of my head you probably wouldnt get 75-80% with a retail lender.
You might get more with a specialist non conforming lender but of course a high interest rate and set up costs
Richard Taylor | Australia's leading private lender
There is no way of avoiding the stamp duty payable on the Transfer but the amount will depend on whether she is a party to the Title already (In some cases it maybe owned as Joint Tenants or As Tenants in Common).
Richard Taylor | Australia's leading private lender
Yes i can confirm this for you.
Depending on the actual size of the Unit will determine the LVR you can achieve.
Richard Taylor | Australia's leading private lender
Yes i can confirm this for you.
Depending on the actual size of the Unit will determine the LVR you can achieve.
Richard Taylor | Australia's leading private lender
Yes i can confirm this for you.
Depending on the actual size of the Unit will determine the LVR you can achieve.
Richard Taylor | Australia's leading private lender
