All Topics / General Property / Exit Fees!

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of PosEnterprisesPosEnterprises
    Member
    @posenterprises
    Join Date: 2006
    Post Count: 290
    January 5, 2007 - 5:50 am

    Hi can anyone tell me which banks have lower exit fees. If i want to buy reno and sell within 12months to build up cashflow.

    If i want to reno and then sell for profit the exit fees are quite high anyway around this? Or would you keep for 12months then sell to avoid it. What are others strategy?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 5, 2007 - 6:48 am

    There are many lenders that do not charge excessive break costs or DEF on a variable rate loan.

    It is difficult to give you an exact answer without knowing more details but happy to make some recommendations.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of celesteceleste
    Participant
    @celeste
    Join Date: 2005
    Post Count: 169
    January 5, 2007 - 10:52 am

    Hi PosEnterprises

    Do the banks still do the portable loans that you can transfer from one property to another?

    Celeste

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 5, 2007 - 2:46 pm

    Hi Celeste

    Yes loan portability is common however there a lot of disadvantages.

    In essence the two loan amounts will need to be the same and have simultanous settlements.

    Not always easy when you are trying to buy, renovate and sell.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of propertypowerpropertypower
    Member
    @propertypower
    Join Date: 2006
    Post Count: 312
    January 7, 2007 - 2:17 am

    PosEnterprises,
    You need to consider Capital Gains Tax as well if you plan to buy and sell within 12 months. I think the bank exit fees will be a smaller consideration compared to CGT.
    My suggestion, don’t sell within 12 months. If you want to release the equity, I believe you can always get the property revalued and refinanced.
    Regards
    Sanjiv

    “There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 7, 2007 - 12:31 pm

    Try Bankwest for low exit fees – Lite product.

    Terryw
    Discover Home Loans
    [email protected]
    Send an email to get my newsletter.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.