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Yes you will be able to claim any interest on the existing loan as well as rates, repairs, depreciation etc.
A good accountant with experience with expats is http://www.gatherumgoss.com located in Melb.
Terryw
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I would go for the tenant first, and get them to find a property with your help.
If you are after cashflow, then wraps maybe the way to go. But there are properties out there that provide cashflow and Growth.
Terryw
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Another point, it is going to be farily difficult to qualify for such a large personal loan.
Terryw
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as long as you have a tenant, it won’t really matter. in the long run things should improve, even if there is a dip. But this will effect equity, and will slow down your next purchases.
Terryw
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I am not a fan of carspaces for the follwoing reasons:
-low capital growth
-low rental yields
-cannot add value to them, and
-hard to financeTerryw
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Steven
I am doing a cat 3 low doc at the moment with GE at 80%. Still not fully approved yet, but it seems the location is not a problem.
Terryw
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Banks won’t take into account income from renting rooms out. Your problem is mainly from being casual, so why don’t you ask your employer to make you full time. After the loan is approved, you could go back to casual if need be.
Terryw
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maybe La Trobe will do it. GE Money (not the mortgage insurer) would do 80% in this area.
Terryw
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If your looking at Commercial, then even an Australia resident working here would have trouble getting 80%. Parking lots etc will be even lower – maybe 50% LVR of less.
Terryw
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you can do a title search for $8 at http://www.lands.nsw.gov.au/OnlineServices/DIYSearch/default.htm
Terryw
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ring a valuer from the yellow pages and pay $300 approx. Could save you thousands.
Terryw
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Oh. I think it has sunk in.
You are purchsing a property, and the wrappee is moving in on the day you settle. I was wondering why you would need a loan if flipping.
You will not be able to get mortgage insurance for a property to be wrapped (if you tell the lender). If you don’t tell, then it may be possible, and this will mean less of your money is in the deal, saving more for the next deposit.
I don’t know what your solicitor is talking about. You will have to pay stamp duty when you settle, and your wrappees will have to pay stamp duty on their purchase too. The timing will depend on the state. In NSW, it would be within 3 months of exchange, in VIC I think it is on settlement – ie cashout.
You could not use and/or nominee as this would have mean’t the title would be in their name and you could not get finance over the property.
Terryw
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If you think the growth has finished, it may still be better to keep it because of the yield, but if you think values could decline, maybe better to sell and buy elsewhere, or ivnest in a different area.
Terryw
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Sorry, I don’t understand what you are saying.
You are wrapping, yet onselling on the same day?
Terryw
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I know it is better to pay off your home loan asap, but i wouldn’t be too worried about doing it too fast at the exclusion of investing.
If it was me, I would borrow to invest first and use the extra cashflow to pay off the homeloan. eg. Something simple, if you could borrow another $100,000 secured on your home, invest this into something like a Eurofinance interest bearing securities at about 9%. You will make about 2% on your money which you could then plough back into your home loan. There are many ways you could even beat this.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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What are you goals? Do you want cashflow to retire immediately or build it up further by investing in high growth stuff, or a combo.
I would pay off any non deductible debt first, then get some investment property, using 20% deposits and borrowing the rest. Put some in shares, maybe margin lending, and keep about 10% for investing in high return risky stuff.Terryw
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Hi. What will you use as security for your loan? If the land is owned by the uncle, you won’t be able to get finance using this as security.
Terryw
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Hi again
I think it will be impossible for you to get approved by mortgage insurance. Due mainly to you being self employed overseas.
There are other lenders that may consider you at up to 95% LVR, but the interest rates are going to be high.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Karen
yes. it does happen, and can even be worse.
I actually don’t think you have much to go on, as the bank did give you formal approval before they changed their minds. And they had previously informed you that they would only lend to 70% in that area.
But, complaining may still get you somewhere so good luck.
Terryw
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Hello Dave
I think I know the units you are talking about. Beware, that they are very hard to sell, and there has been no capital growth there -ever. One of my friends bought one for about $100,000 about 6 years ago, she tried to sell it a few years ago and gave up.
There will be problems financing these as they are very small – less than 25 sq m. you are probably looking at around 60% LVR max with an interest rate of around 7%.
Terryw
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