Forum Replies Created
Very well explained Ben..thanks for the example as well. Makes a lot more sense to me(and a lot like me I am sure) now. Any good accountants with a property focus in Melbourne or nearby that anyone could recommend?
Hi Raftim,
Personally I don’t think there is a right or wrong answer to this question. Well thought out and depending on your circumstances, either option could be financially viable.
Good Luck,
ABHi Hair,
This should give you a rough idea. Good luck
https://www.propertyinvesting.com/topic/4406018-townhouse-construction-costs-in-melbourne/
Regards,
ABMany thanks Terry,
I will investigate the options further.Just and update,
I had a quick conversation with the bank. My wife was asked to act as a guarantor – general position because the bank needed to use her income to service the loan.They have clarified as below :
When an applicant applies for a home loan the bank takes only the applicant’s income in this case mine, however the full liabilities and monthly expenses are input. Hence the reason why she had to act as a guarantor.My question though is could we have set this up any different?It appears we may need to seek the expertise of an experienced MB to further expand our portfolio or May be its time to halt the borrowings for a while and wait for some capital gains & equity to kick in. :)
Hopefully it helps others in my situation.
Regards,
ABThanks Terry,
As to why they are asking for a guarantor – I am a bit confused myself.
Both me and my friend have good serviceability and borrowing capacity as far as I know. The only thing I see that could have raised some red flags from the banks end is that my friend does not have any history with the said bank who is lending- whilst me and wife have history dating back to a decade.I have double confirmed that no other properties have been held as security. I tried my best to keep my wife out of it – but at the 11th hour the bank requested this additional step done.
Bit of a underhand ball for us as we didn’t have enough time to choose another bank or to go defensive with the fear of losing the deal.
Thank you Benny and DT for your comments.
Benny – you are right I will need advice from a expert MB.
DT – this paints a gloomy picture for all partnerships, particularly ones with situations that need a guarantor (as in my case) , but I guess that is the reality of it. Is setting up a trust a better way of handling it?Thanks DT,
Would that also mean that if there is equity in the loan , or if the IP becomes CF+ she gets looked at favorably during assessment?Thanks Zopm I just replied to your PM. I am keeping a close eye on this thread…hoping to get some answers :)
Wow exactly what I am planning to do and the question I had in mind @zopm….Very interested in the responses to follow…my first one as well so unfortunately no hands on experience with it as yet….I have a town-planner involved who’s sort of guiding me with the process…hoping the have the project complete before End of year.
Thanks Corey! Appreciate the response.
Hi Guys,
Any recommendations for an investment focused tax agent/accountant in or around Melbourne?
My current agent who is also a broker doesn’t seem to be investment focused at all. To me he seems to be lacking in a lot of areas including structuring of loans and I was pretty much in the same situation as Bungee – Although we don’t own IPs through a trust I believe the division of titles could have been structured more appropriately to minimize land tax . We own IPs as husband and wife under joint ownerships and I was only aware of what land tax is once I got the letters in the mail. :)
Regards,
ABHi Jobie,
If you are looking to move into one of the units then yes – it would seem that evicting the $130 tenant for you guys to move in would be the best solution given your description. You can then have the agent gradually bring the other units to market price. If the agent is unwilling to do this then I would be looking at other agents in the area who would be more proactive.Hi Benny,
Apologies.
I was referring to to Mortgage protection insurance.
Just found this link that I was going through after posting the question
http://www.bankrate.com/finance/insurance/do-you-need-mortgage-protection-insurance-1.aspxI would be very interested to know what people here think of the insurance.
Regards,
AmeetThanks Benny , I chose buy and hold although I have a sub-division project in the pipeline for a property which is tipped slightly negative right now , I hope to gear them positive once complete. I am new here and so glad to see the wealth information around this site.
Thanks for the tips…appreciate it.
Thanks for your reply Corey appreciate it. Will see an investment focused broker.
