how much can u put into the fund per year?
do they lend for postcode 4802?
if the lender will lend at 85% lvr, and with $50,000 in the fund, that could mean i could borrow $283,000, giving a purchase price of $333,000, but nothing in the fund to pay for stamp duty, etc, and if you cant make much of an addiditional contribution, then it wouldnt work
awww bummer
josh
Josh
Currently, age-based limits determine the amount of ‘deductible’ contributions you can make each year (such as employer Superannuation Guarantee payments and salary sacrifice amounts). From 1 July 2007, a single limit of $50,000 per person per year will apply to everyone.
Richard Taylor | Australia's leading private lender
yes, but non concessional contributions (ie those that are personal contributions and not caimed as a deduction) for the 2007-8year has been capped at $150,000.
that means I can put some of my savings into the super fund, add that to the $50k already in the account are there is the 20% deposit… i would then only require a 80% lvr loan…
in terms of serviceability, the ongoing employer's super contibution plus the money from renting the propery out would be used ???.. the shortfall being paid for out of my weekly income.
what are the interest rates that these lenders charge?
That is correct $150K per annum for non concessional contributions.
If the loan is in the SMSF then the shortfall has to be paid from the fund and not your weekly income.
Settled a loan last week for a client and the current rate was 9.1%.
Richard Taylor | Australia's leading private lender
in terms of the short fall, wouldnt I make a contribution into the fund from income earned?, up to a max of $50,000 per year, which after the 15% contribution tax, would be $42500. That would be enough to meet the obligations of the fund.
do you set up SMSF?, if so, how much does that cost?
is 9.1% the lowest rate?…also is interest only available?
what happens if you set the fund up but cant get a loan?, is there any way of getting a pre-approval?
are there postcode restrictions?
Hi Joshua
Your correct with topping up rental income from salary sacrifice deductions. This can be done up to your concessional limit. At present this is $50,000 per member (or there is a transitional limit of $100,000 for people aged 50 or over at 1 July 2007 until 30 June 2012).
The cost of setting up an SMSF and ensuring that you comply with all of the requirements for Self Managed Super legislation does not generally come cheap. On top of this, and to enable you to borrow via an SMSF you'll also need to establish a seperate "Bare Trust" (with seperate trustee) which has to hold the property for the benefical ownership of the SMSF and it's members.
This last bit is required under the new SMSF rules which state that the lender can only have recourse to the asset being purchased and not to any other assets that the SMSF may have.
Pre-approval may be difficult without the SMSF being set up however a good broker should be able to give you a good indication whether a lender would come to the party or not.
On postcodes lenders at present are prefering to only do capital city/metro postcodes.
Hope this helps
Mike Feltscheer
Navigator Financial Solutions
Level 29, 31 Market St,
Sydney NSW
(P) 02 9263 2631 (F) 02 9263 2800 (M) 0401 992 641Josh
As Mike mentioned these loans are post code orientated.
I have just settled one today for the Sunshine Coast but in the main it is capital cities and regional areas.
If you let me know a post code your are considering i can check whether it is acceptable.
Richard Taylor | Australia's leading private lender
Sorry in answer to your previous question yes interest only is available.
Richard Taylor | Australia's leading private lender
Postcode would be 4802
Hate to say Airlie Beach is probably not going to be acceptable.
Townsville is the only town other than Brisbane / CG & SC that is acceptable.
They may consider it on a reduced LVR but may also charge a higher rate as it is a outer post code.
Richard Taylor | Australia's leading private lender
oh ok
thanks richard
if they charge a higher rate, what do u think that would be?, or what would the lvr reduce to?
might be getting too much?
For non capital cities or regional towns their is a 0.25% rate loading.
Might be 75-80% LVR.
Richard Taylor | Australia's leading private lender
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