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March 19, 2011 - 2:06 am

Only claim the tax benefit for the title deed holder of the IP…doesnt matter whos on the mortgage.

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Michael

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March 19, 2011 - 2:01 am

To be honest, i think you will have trouble finding any lender to consider this deal/

With vendor finance your limited to really only 6 lenders- and all 6 lenders requires genuine savings….if this is not urgent, you can convert this NGS- to a genuine savings…and then you may have a chance- pending the rest of the deal’s detail.

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Michael

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March 16, 2011 - 11:26 am

As Richard mentioned, need approval from FIRB. The 4 keys points are-

1. Can only buy for Investment purpose ( limit applies)
2. Must be residential ( unless your paying under a company’s name)
3. Can only purchase NEW properties, off the plan, land with construction to start within 24 month….no existing dwelling.
4. LVR is set at 70% – income from china acceptable- but must work for a multinational company or a “big” organisation- FULL DOC ONLY

http://www.shapehomeloans.com.au/non-resident-home-loans-

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Michael

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March 16, 2011 - 11:20 am

I had a client in a similar situation- and they were able to cancel the contract and get their 10% back.

If the new company is asking you to “sign up” with them. then it sounds like you have the option to leave and get your money back or go for the new contact.

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Michael

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March 16, 2011 - 11:07 am

You can order a valuation first- but you will be paying for it..and can be a costly exercise if you dont end up buying the home and going to a few auction. I currently have 2 client who are doing this; paying valuation upfront prior to auction- as they are buying to their max “LVR” and the property type they are purchasing has a huge influx in value.

So i normally advise client. if your going to auction; to apply for an pre-approval for the MAX LVR of 90-95% but ONLY bid to a max of 85%, UNLESSS you have extra cash to support the gap if the valuation falls short ( Very common)

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Michael

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March 15, 2011 - 7:38 am

Sorry- you will still have the pay the market value of the stamp duty, which ever is higher.

Which state are you in?? i know in VIC and some another state; no stamp duty is payable if you “add/ remove ” your wife to the property-

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Michael

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March 15, 2011 - 7:32 am

Stephen – you can claim the benefit from day one and dont need to wait till the end of the year…; i think it was called – Income Tax Withholding Variation – previously known as a Section 22?? variation.

When i had my first IP, i had my accountant do the above…but once i started to build on my IP portfolio and went self employed it got a bit to complex for my accountant ahah – But speak to your accountant about it; as the rules could have changed in the last few years.

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Michael

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March 15, 2011 - 7:23 am

There are lenders that still look after student accommodation- but the loan needs to be massaged to suit the lender’s requirements.

Need to know the following:

How many squ meters?
If it self contained?( ie shared Laundry/kitchen?)
How many unit’s in the compelx?
Is this off the plan? or existing?
Is there a controlling agent ? ie SHA?

Just be aware, the LVR would be around 65%, you must have good serviceability, the rent from this property will be only taken at 50%.

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Michael

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March 15, 2011 - 7:04 am

David where did u hear this?

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Michael

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March 15, 2011 - 2:10 am

Euro if you read my post again, it’s been broken into 2 part (2008-end of 2009) and present. Either way this tread is going out of topic; and it looks like your looking for a “particular answer- no matter what we say” so we end the tread from there.

Each forum reader can decide what information they process and take up….

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Michael

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March 14, 2011 - 10:38 pm

alright, stay with CBA

The LMI alone will make a refinance not worthwhile…and 7.11% is still a good rate for a bank that offer extensive network, good customer service and branch access etc..

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Michael

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March 14, 2011 - 10:30 pm

OK. what’s the current LVR ? and what is your total borrowing and value you currently hold with CBA??

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Michael

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March 14, 2011 - 10:17 pm

Is that rate 7.11% for a LOC? if so; it’s a pretty dame good rate….

Either way even if you did try to refinance to another lender; the cheapest you will get from a major bank is 0.1% off ( NAB) and the most you will get off from a non-bank is around 0.2% ( BMC) – not a great deal! after considering you will have to pay for the application fee/ valuation and LMI!! again….

If your happy with the bank, and the rate is within acceptable limits- stay. in regards to the equity release at 90% LVR, your already max out any potential or worthwhile equity release. Using an LOC is your best option; which you currently have in place already.

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Michael

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March 14, 2011 - 1:32 pm

Richard is correct, here is a bit of history lesson. Euro you are true when you say they are “securitised lenders” and technical speaking ( book wise) it’ doesn’t make sense for them to lend for such specialized security, but at the end of the day- they do…i can;t speak for all brokers; but my firm alone has placed many loan via securitised lenders for unit has low as 30 squ meters ( read on)

From 2008-Beginning of 2009

There were a range of lenders that still offer finance for units as low as 15 squ meters ( CBA, ANZ …etc) however for the client who did not fit the CBA or ANZ criteria – there were – First mac, Heritage, Wide bay etc…

First mac – they were specialist with the under 50 squ meters with there homerun08 product – how do i know this you ask? because our firm has placed well over 15 deals with first mac from 2008-2009 and they were all for unit’s as low as 30 squ!!! note; this product was taken off the shelf as of Dec 2009.

Homerun08- Unit as low as 30 squ acceptable, 60% LVR, full doc, self contained and max exposure limit of 20%.

2010- to Present

A lot of these lenders has tighten their rule books; unit as low as 30 squ only possible for existing clients of the bank and must not be there first IP. If the deal is right; nothing is impossible- it’s just a case of asking.
As mentioned, we still place loan via Firstmac if it make sense too.

P.s Euro- relax a bit buddy, every time you post i can feel a bit of tension and stress. Relax!

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Michael

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March 14, 2011 - 8:56 am

under 50 for living space – excluding the carspace etc….

Placed one loan via them before for a FHO in Chippendale- 44 internal with 10 for car space.
And the LMI was placed via QBE- within their acceptable guild-lines of under 50 inclusive

Euro- dont accuse till you have done the work. every deal is possible it just depends how the deal is placed and what you have to offset the “negatives of the deal” – i have nothing to prove, as i do this as a free service- ; as much as i hate misleading information…in M Broking information changes all the time.

FYI — > this is an internal email sent by first mac

“Effective 1 March 2011, FirstMac will no longer require mortgage insurance on all new loans up to 80% LVR (some exclusions* apply).
This change means faster turnaround times and a more consistent credit approach, resulting in enhanced service levels for both you and your borrowers.
Exclusions* to apply:
· New loans over 80% LVR
· Construction loans (as per current process, all construction loans will continue to be mortgage insured)
· New developments
· Additional advances on loans currently mortgage insured —mortgage insurance will continue to apply
If you have a loan that fits the current FirstMac policy, but falls within one of the above exclusions, mortgage insurance will be required.
In all instances a clean credit bureau report and credit history is required.
To summarise:
· For new loans < $750,000 and < 80% LVR, mortgage insurance will no longer be required (exclusions* apply)
· For any new loans outside the above parameters and FirstMac policy, and provided FirstMac is prepared to support the application to the insurer, mortgage insurance will continue to apply (can be capitalised to the loan)
· Where mortgage insurance is required, FirstMac will pay the LMI premium for loans < 80% LVR up to $750,000 (increased from $600,000)
“

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Michael

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March 13, 2011 - 9:19 am

Euro 73 – i love your posts! it’s always a fun educated read

Regards
Michael

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March 11, 2011 - 2:31 am

what do you mean by “really work”

Not to sure about the 10 years part???? if your taking about +VE (positive geared)- it depends on what you buy and where; all of my 5 IP are positive from day one. ( on a 80-90% LVR)

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Michael

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March 10, 2011 - 10:56 pm

Wow good work guys, it’s like taking forum help to the next level ahah
I normally buy YIP and Money, once in a while API…Richard or anybody else could you email/scan me that article? i be very interested- email to [email protected]

I was going to jump onto the YIP bandwagon.. after i finish my mini development project im doing now ( block of 5 x1 unit in Glebe)

Regards
Michael

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March 10, 2011 - 2:35 pm

You were featured in API???

Regards
Michael

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March 10, 2011 - 4:14 am

Most RA need it in writing …just to make your life hell before you leavve and the swapping process harder in hope that it’s all gets too hard and you would simply stay

But all in all, when we changed our RA; we had our new RA write to them.
It’s just a simple letter, don’t need to go into much details.

Regards
Michael

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